Hi folks, Sorry this is more of a personal query. I am an incoming A0 at a Tier-1 firm and want to buy my dad a car right out of college (has been my childhood dream). Wanted to know if taking a 10 Lacs Car loan a couple of months into the job is okay? Or should I wait more? Are there any factors I need to take into consideration before going ahead with this?
Were you always this impatient or have you become like this now? You waited since your childhood, you can wait a year more. You’ll put yourself under more pressure if you take a 10 lakhs loan 2 months into your job.
Haha, ig I have always been but law school definitely contributed. While I appreciate your advice, would be grateful if you could explain what factors might come into play. I will be earning upwards of a lakh and a 10 lacs car loan would mean 20k EMI per month. If I am able to spend this without much financial strain, why should I not? Again, please do not mistake this as a counter-argument. I totally understand your advice, just hoping for more clarification for the sake of my own knowledge.
I feel you kids ought to be imparted some knowledge of how money works. ‘I’ll be earning upwards of a lakh”….. dost it is not at all that much money? Don’t say that litigation pays less that’s down to dumps. This is still v less money which gets over v fast. The costs are huge! The overheads once you join a job only increase. Travel / rent/ your contribution towards home/ you’d park some money in savings and tax saving schemes / socially (gifting, going out etc) / clothing / food/ emergency costs- all of them combined your upward of one lakh salary would remain very less.
You don’t even know yet if you’d like your job enough to stay put for long. So yes, have some patience and you might not know but you can 100000 do without a car immediately out of college. This upwards of lakh high horse attitude needs to be studied.
First, get an emergency Fund for yourself. It should contain atleast 6 months to 1 year living expenses (shorn of discretionary). Second, get a term insurance, simple term insurance with atleast 1 crore death coverage.
Then do anything/everything else.
I did this later than I should have, do not make the same mistake.
I went on to gift an IPhone to my mother and a huge TV to my grandmother too, but do the two things stayed hereinabove before anything else.
Sorry this is more of a personal query. I am an incoming A0 at a Tier-1 firm and want to buy my dad a car right out of college (has been my childhood dream). Wanted to know if taking a 10 Lacs Car loan a couple of months into the job is okay? Or should I wait more? Are there any factors I need to take into consideration before going ahead with this?
You don’t even know yet if you’d like your job enough to stay put for long. So yes, have some patience and you might not know but you can 100000 do without a car immediately out of college. This upwards of lakh high horse attitude needs to be studied.
Then do anything/everything else.
I did this later than I should have, do not make the same mistake.
I went on to gift an IPhone to my mother and a huge TV to my grandmother too, but do the two things stayed hereinabove before anything else.