It's time for the b a q a b a q a.
Tiffan ale'd be a q a no man day, that'd be a q a a. It's time for the b a q a Brianda Bishing Question answers. You have questions, we have some answers. Although we are not your mama, your brother, not your sister, just your friend, not your doctor, not your attorney, not your financial advisor.
To the end.
Okay, well, none of those things, which means that you're going to lean into the people that you pay for the final say that was a.
Bar leading to people you pay for the final say I should have been a rapper. Okay.
If you have questions, you can ask them sliding our d ms on ig Brianda Vision Podcast. You can send us an email Briana Bishing Podcast a g dot com or go to Broadambision podcast dot com and click contact us. Okay, if you want to be anonymous, please say if what you're saying is a little bit scandalous, we might make you anonymous anyway, because y'a we do not want to be responsible for what happens. And if you want to be anonymous or you want to give us a fake name,
like today's contestant, then you know do that too. So this is in from Sandy on ig Hi, Mandy, and Tiffany. I have a car buying question for you. I'm looking to buy a car later this year. Estimate cost is thirty thousand dollars. Should I pay for in cash or
finance with a large down payment? With car interest rates being upwards of seven percent plus and my high yield savings account rate is four point three percent, I can make a case for taking the money from savings and paying for the car and cash, but that will take a big chunk out of my savings. That makes me nervous, even if the numbers look right. My details, which we love when you do details. My emergency fund is fifty thousand dollars. Ooh okay, so it'd be more than half
your emergency fund. I fully fund my wroth Ira HSA and put eleven percent into my four to one case traditional slash wrath IRA to our four one case okay, put a little into a five twenty nine so that means a kid. It sounds like you have a kid and I have a seven eighty credit score. I mean, Sandy, you looking for a partner. I don't know if you as a man or a woman child, but either way
you look good bare bones. My monthly living expenses are twenty five hundred dollars debt free, so thirty thousand would be about twelve months of emergency fund income is one hundred and one thousand dollars. Thank you if you use it for your podcast, Stady, it's a good name. Thank you, Thank you, thank You're both awesome.
Oh you're welcome.
First of all, Sandy, let's take a moment, cause, Sandy, your numbers are cute. I don't know what you look like, but I promise you you're good looking cause these numbers are fun. Baby, these numbers is fine. If you are a woman, super fine. If you are a man, super dupervine. Okay, no, this is really awesome. I love to see this. So basically, you have about a year and a half of emergency fund saved. Give her take with fifty thousand dollars, which
is great. You're making good money at one hundred thousand dollars. Plus you have maxed out on everything, which is great. The question you sound kind of like me when I'm making a decision, And I'll tell you what my financial advisor told me when I'm making a decision whether to buy something cash, because I'm in a similar position as you, and that I don't have any debt. I max out on all my things, I have plenty of emergency savings.
All the things. It really comes down to.
On the surface, she told me, like I bought my condo and I said, Anjalie, I want to buy my condo. I think I want to buy a cash And she said, okay, Now here's the thing on the surface, is that if we're just talking straight math mathematical decision, then is that the best choice? No, because my condo was a little over five hundred thousand dollars And I said, I want to buy a cash five hundred thousand and she said, okay, here's the thing, Tiffany, you can, you know, get a loan.
I think I think the time, maybe I could have got a loan for like six percent seven, which is high. Because that's why I was kind of like, I don't want pay too I don't want to pay loans plus two. Quite honestly, I already lost the house to foreclosure in my twenties, and I like knowing that I own it full out and I just don't want to have to pay a mortgage, and I pay hoa here, and so I just was like, I just didn't I just didn't.
Want to have to think about a mortgage.
So but on the surface, I could have put down a good size, you know, down payment like he's like you, and I could have paid monthly and then I could have put the rest of the money in the market. And to be honest, last year, I think the market returned about twenty two percent. Thanks, So think about what's twenty two percent or three hundred thousand. Like, let's just say I put down two hundred, not even two hundred.
Let's just say I put down one hundred thousand, and I put four hundred thousand in the market.
Yeah, let's do the math. Let's do the math. Let's do the math.
Four hundred thousand, not that I would have put all into the market, but let's just say for the times, twenty two percent four hundred thousand times point twenty two. So what's happening four hundred thousand times point twenty two eighty eight thousand dollars. So, if we're looking at super simple math, I missed out on maybe making an additional eighty eight thousand dollars because I could have put the money to work versus putting the money inside my my condo.
My condo did not appreciate eighty eight thousand dollars. Of course, that's really simple math. That's you know that probably wouldn't have made that. But let's just say even fifty that I left on the table for a peace of mind for me. So I had to ask myself, what is my desire outcome for paying for it in this way when I have all everything else, just like you check
check check check. I wanted peace of mind. And I'm not mad at me quote unquote losing out a fifty thousand dollars for my own peace of mind.
Here's why I did not know this. But twenty twenty three was a really rough.
Year in business. I made like almost no money, and so I didn't really take home a lot of money last year. And normally, I mean I have taken home take home, take home, not gross take home some years multiple seven figures.
Last year was barely chill. I don't even know.
Maybe I made two hundred thousand, I don't even know, not that that's a little bit of money, but compared to making two million and so on top of everything else I was paying for. I'm glad I didn't have to pay the mortgage, so I don't I'm not mad at my decision, although I was conscious in making that choice. What could what could that money if not used to pay down the car in full?
What could that money be doing?
So then the other thing on the So that's just the pure mass side. On the other side, to ask yourself, how do you want to feel about this money? Are you like, I really don't want to have to pay this this That's what it sounds like. You're saying, like I really don't want to have to pay for this car. Note how long is the car? Note can you prepay? You know, let's just say you put down ten thousand dollars or five thousands whatever. Are you able to prepay if you're just like, ah, I want to be done
with it. That's something Angelie also told me. What if you paid and then wait for interest rates to go down and then prepay it off.
These are just some things to consider.
You know.
I don't think it's necessarily wrong to pay.
The car for thirty thousand dollars, but if I was going to get a car note, I would be looking at credit unions.
I know you said seven percent plus, and I agree. I took out to look at the numbers.
But for example, Federal, Navy, Federal right now, I think they're offering like a little under five percent, So I would be shopping around if I was going to get And I know this doesn't fully answer your question like what should I do? The answer it depends because you're in a good position to make the choice. I want everyone listening to understand that Sandy gets to make this choice from heart focused out because of the other financial
positions she finds herself in. I get to make choice that says I'm leaving fifty thousand dollars on the table so I don't have to stress for twenty twenty three because I know that there are other ways that I can make the gap up for that fifty thousand. Maybe it's a speaking engagement, maybe it's launching something for the
business or whatever. So you know, Sandy, you get to make the choice to say, hmm, you know what could I do with that twenty If you're just gonna stick the twenty in your savings account, But if you're gonna put the twenty maybe into the market. When we know on average of market it's gonna yild about ten percent give or take, you know, annually. If you look at the average, you know, maybe there's money you're leaving on the table. So the answer is it's really up to
you and how you want to feel and navigate. Know that any money that is like plunged into like debt, you know, or plunge into like an asset that's depreciating, is money that's kind of lost over time.
So if you're looking.
At the smarter financial choice, probably making a payment probably is a smarter financial choice.
And then but not just putting that money to work for savings.
Actively making that money work, I'd have to you'd have to put in the market for it to make sense. But if you don't want to own anybody, and you're like child, I don't want to have to pay this forever and never never, you can pay it off in full. So Sandy, I hope that helps you decide what's best for you. My stepdaughters text me now harassing me because I told her I was gonna buy her. You know, Okay, she come on Thursday. Okay, I told her I was
gonna buy a car for her for a graduation. And she's so cute because I told her, like, so if I don't know if you can see the mess behind me, because I've moved into my condo, which was a lot emotionally, I'm in here now, but my office is a mess.
Nothing is, you know, nothing is. It's just so much going on in here.
And so I told her I would pay her to do my office, like to set it up and take all the things out of the boxes whatever. And I asked her how much you're gonna charge me to set up the office and she told me six hundred fe I told her to think about it. She told me six hundred and fifty dollars. I'm like God, but I like for her whenever I hire her to do something, I like for her to tell me what she thinks she's worth because it's important for her to learn, especially
as a young black woman to learn. So I always tell her, do your research and come to me and then explain to me where you got these numbers. So she was like, I did my research and I think six hundred and fifty dollars. I said, where'd you get that from? I said, I will share with you what I'm thinking, and you tell me where'd you get that from? She's like, well, I googled and I saw that this is what people charged. I'm like, like home edit people or like.
Task grabbing people.
Because I told her I was taking closer to two hundred, and she said okay. I said, because I went on task grabbing and I looked and I saw organizers were about forty to forty five dollars an hour. This is probably about a three or four hour jobs. So we're looking at about two hundred dollars give or take maybe one eighty or two hundred. And she was like, okay, I was looking at the super professionals who like have their own companies, which understandable, but that ain't choo Sis,
you're seventeen. So then she said, you know what, okay, I will give you. I'll take one sixty. I said, Ellissen. I actually had to call her because we were texting. I said, girl, I told you two hundred, why are you taking one sixty? And then she said something so sweet because you think these kids don't be doing She said, you always do so much for me, Tiffany. I'm always so grateful for you, and so I'm going to give you a discount. I was like, oh, that's sweet, but
don't do that. I told her, don't do that when someone makes you an offer for this is what I'm willing to pay. Take that money.
I said.
You don't get to be a big boss lady and taking discounts that nobody asked for. It'd be one thing. If I asked for a discount. I did not, I said anything listen. I actually was hoping you would push back and said, girl, let's do two fifty if it goes over four hours, and that's the max that you'll pay. And she said okay. So I said, I'm gonna pay you the two hundred. Don't ever offer up a discount
when someone didn't ask for it. And you know, so she was just texting that she wants to, you know, come by on Thursday to start like organizing, and I said okay. And then she was asking me about, you know, buying her car, and I will tell you what I you know, tell her what I'm going to tell you, Sandy, as you look for a car. I don't know if you're getting a brand new car, but I have never had a brand new car and I.
Don't want it. I don't want it.
Why we all know that cars depreciate as soon as you pull it off the lot. You can literally buy a shirt from Target, keep it for a week or two, say I don't want it, like I don't want it. I think this top that I'm wearing this from Target, bring it back and get all your money back. You keep a car for a week or two, you cannot get the same amount of money that you pay for
that car. It depreciates. A car is an asset something you own, but it's a depreciating asset, something that you own that has less value over time, unless it's something like you know, I don't know original Harley from Cars or not. Hardley's not even a car anyway, So considering that it depreciates till for time. I do not like to buy brand new cars. My dad taught me early on. It doesn't make sense. I let most of the depreciation falls off in the first year or two, and then
that's when I buy it. I get my cars one or two or even three years old, still fairly new. I get it certified pre owned, which means if anything breaks on this car, got to fix it for free or for a low deductible like fifty dollars or one hundred bucks. And so every car owned has been that way. My last car I had chat it was always something wrong with that car. But guess what, it was certified pre owned. They've I've had three new engines in that car.
Did you have to say it three? I ain't gonna shout that company out, you know, it's a famous car, brand three new engines, brand new an engine is what twenty five hundred, three thousand dollars? You do the math, you know, like, they don't pay me to drive that car these days. And I still have certified pre on that car for the next like three years or something like that.
And so I'm a you know, I'm a drive that car. Well, my sister has it now.
She's gonna drive that car until that certified pre owner is up and then she'll sell it. Yo. So if it was me, Sandy looks like I told her, listen, I told her, you're not getting a new car. You have to get a certified pre owned car because you get the warranties of a new car for like two to four to five years, depending how old the car is.
Up to a certain number of miles but.
Without the depreciation that the big hit of the appreciation for a car that's brand new. So that's why I suggest to you too, Sandy. I don't know if you're buying a new one, but if you are considered certified pre.
Owned, Yeah girl, okay dot free.
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I don't know Manday's out here. She usually does that part.
But until next week, you already know we're here every Monday, Wednesday, Friday. And if you missed a Wednesday episode, child, go listen because I talk about student on debt relief and all that I learned, and I talk about my to the Vice President's residence and me and her or whatever. It's a good appy if I do say so myself, and I do say so myself.
All right, until next week, y'all. Bye,