What's Your Opportunity Cost?

Greenmachine

Greenmachine

TJ Enthusiast
Joined
Aug 13, 2018
Messages
231
Location
New York
What do you guys have to decide between to either buy or maintain/modify your TJ the way you want to?

Whenever I consider spending a couple hundred bucks on my Jeep my mind goes to other places that may need that money or may be more appropriate for the money like:
1. Retirement savings
2. Debt/mortgage
3. Kids’ college fund
4. Home improvements
5. Emergency fund
6. Buying more vehicles

But, in the end, I feel I NEED my Jeep and it’s improvements! Lol

How about you guys?
 
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I think you pretty much hit the nail on the head, because my list looks the same as yours.

Oh, I've also got braces for three kids on the list as well :LOL:

Man, I need to win the lottery.
 
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My initial thoughts are "I should be contributing this to our debt". We have been working really hard at paying off debt; student loans, credit cards, a home equity loan (AC/heaters are damn expensive). The interest is just stupid on some items.

My next thoughts are "I should use this for home improvements". We were looking at moving right before this pandemic hit. We have a few small items our realtor suggested we do before putting the house on the market. We've since put that on the backburner but will revisit once the all-clear is given.

Third thoughts; I just want this for my jeep :D. I am trying hard not to buy anything for mine the remainder of this year for the reasons above (minus maintenance). I did have an order for savvy rocker guards, but decided to cancel given the chaos in the world.
 
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My thoughts only (to each their own):
Take retirement savings off the list. it should be deducted from income just like taxes before anything else. Take it directly off the top of your income so you never have to think about it when making a purchase.

For the mortgage, make a plan to pay it off before you retire. As long as you can do that just make your payment. As long as your interest rate is low any extra money should be invested (in stocks or on the Jeep both are good investments right?) not used to pay it down as you can make more than the interest you save usually.

Kids (college, braces, food?). Kids are tough, they'll be fine I hope..... They like to ride in the Jeep so they have that going for them.

Reality is, when it comes to spending money, the question is how much can I spend before the wife gets mad or more likely decides she needs something new as well.
 
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My Jeep is a toy. So it is the last to get attention, after other needs are met. I have a few hobbies so it ebbs and flows. I really want to finish the suspension but I’m at the point where I have to drop $800 for new links....so it will take some time to squirrel away some cash to do so.
 
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I have about 12K left in student loans and I will be debt free minus a house payment. We have about 8k sitting in the bank as an emergency fund. 2 payments left on the wifes car. I dont get to spend any more money on the jeep other than maintenance costs until the Student loans are gone and the emergency fund is sitting at 10k. So Im looking at 8-10 months of having a 2wd jeep until I can finish the front axle.
 
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This is always an interesting topic on any car forum I've been apart of. My goals/wants/needs may be vastly different than someone else's as well as income level. I justify my purchases for a lifestyle I choose to live based on the fact I put in an easy 60-70 hour workweek. I also invest a very high amount monthly and quarterly with bonuses. I have a year-end goal for investments that I'm accelerating to take advantage of some blue-chip stocks that are great buys right now as well. We are renting our place here in Florida simply because we don't want to stay here and to buy a decent house in a good area in Ft Lauderdale, you're dropping $500-600k. My investment account did 24% return last year, so I have little desire to take money out of that, to dump into a house and God forbid the housing market goes down here, I don't want to be stuck. So the few grand I just dumped into the LJR and the price point I bought the LJR for, I'm ahead. If I needed to sell it, I could get my money back out of it easily. The only debt we have is my M6, the wife's Q5, and monthly bills we use the CC to get whatever incentives they offer. So I look at the LJ as a chunk of money or equity, that is easily obtainable to get out of it.
 
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1. Retirement savings - Not as much as I want, but more than most my age
2. Debt/mortgage - Zero debt / no mortgage, and we own two homes
3. Kids’ college fund - He's 21, I've paid all I am paying
4. Home improvements - I do my own, primary home is 13 years old
5. Emergency fund - Enough for at least 6 months liquid
6. Buying more vehicles - Wife wants a new Jeep Grand Cherokee, she has a 2014 with 60k now she bought new. Will probably finance part of it due to low rates being offered.

I work hard, as does my wife. We both have full time jobs and flip a house or two a year on the side. We have been doing that since 2014 and it really helped us get where we wanted. I am going to take a break this summer and enjoy life. We close on our last investment property today. I own my home, and the home my grandmother lives in. Everyone's situation is different, mine used to be much worse. One day I decided to spend more time thinking about how I could change it and less time feeling sorry for myself. I owe that to a friend who gave me some direction, it was my moment of realization that I can change my circumstances.

I am just getting into Wranglers and slowly building based on what I need, and want to accomplish. I still have to rationalize the expense to myself, and my wife. Sometimes that's hard to do (on both sides). I don't come from money, even when a have some to spare its still hard to part with.
 
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Greenmachine said:
Whenever I consider spending a couple hundred bucks on my Jeep my mind goes to other places that may need that money or may be more appropriate for the money like:
1. Retirement savings
2. Debt/mortgage
3. Kids’ college fund
4. Home improvements
5. Emergency fund
6. Buying more vehicles

How about you guys?
Click to expand...

1. Handled. I should be fine as long as I don't live past 96 or spend foolishly. (It was 106 before the Coronavirus economic meltdown.)
2. None.
3. Paid.
4. Reserves are set aside for repairs and improvements.
5. A sum sufficient to cover six months living expenses is liquid and available in an account earmarked for emergencies only.
6. Garage and RV parking is full. No more vehicles until I sell something or add my dream auxiliary detached workshop/garage (See #4).

BTW, I'm already retired.

When I was still working I learned to fund my jeep habit by being on the lookout for used but not abused quality parts that had been the "go to" modification last year but that were often being sold for almost nothing to make way for the "latest and greatest" stuff on the market this year.

I also learned to respond to my wife's question What did that cost? with "About a hundred," no matter what it really cost.

Did I mention that I'm divorced?
 
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Rule #1 for me is the family needs are met first (shelter, food, utilities, protection, comfort...). Rule #2 is that Jeep/hobby expenses don't accrue interest. Rule #3 is if Rule #1 can't be fulfilled then the Jeep/hobby gets sidelined or sold- like I did years ago when my 2nd child was born and wife took a 2yr leave of absence. Discretionary money comes from buying/selling parts, unspent funds from my monthly expense set aside, or other sources/windfalls of non-wages money.
 
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I don't really have any opportunity cost besides my retirement accounts. I'm 21 so everything is pretty easy and I have next to no expenses. I already maxed my roth IRA out for the past few years and have a good amount in my individual account that I use to make small bets on things. Working out well so far.

I don't know what is going to happen when I actually have adult expenses. The Jeep may not get as many nice parts :(
 
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Greenmachine said:
What do you guys have to decide between to either buy or maintain/modify your TJ the way you want to?

Whenever I consider spending a couple hundred bucks on my Jeep my mind goes to other places that may need that money or may be more appropriate for the money like:
1. Retirement savings
2. Debt/mortgage
3. Kids’ college fund
4. Home improvements
5. Emergency fund
6. Buying more vehicles

But, in the end, I feel I NEED my Jeep and it’s improvements! Lol

How about you guys?
Click to expand...
Hmmm. You lost me at 1. I have some rethinking to do!
 
jodomcfrodo said:
College is easy mode. No mortgage, no kids, no wife, nothing.
Click to expand...

I was stupid, didn’t go back to college until I was 30, after a house, kids and a wife. I worked 50+ hours a week and full time school. I don’t remember those years much. I advise my children often not to make the same mistakes I made with life. Hopefully they learn as I didn’t have anyone to tell me differently, learned those lessons the hard way.
 
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I'm with several folks on here.

Only dependent now is the dog.

1. Retirement savings - Retired, good for 30 more years at least.
2. Debt/mortgage - Paid off
3. Kids’ college fund - Nope
4. Home improvements - Minor, when I get around to them.
5. Emergency fund - Good for about 9 months.
6. Buying more vehicles - Have a newish F250 truck, a car, 2 motorcycles, a mountain bike, a jetski, and the Jeep. Don't need anymore.

My issue is buying gadgets for the Jeep, the Harley, the Sea-Doo, or the Trek. Have to rotate them to keep them all happy. Keeps me busy.
 
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gbirk said:
My thoughts only (to each their own):
Take retirement savings off the list. it should be deducted from income just like taxes before anything else. Take it directly off the top of your income so you never have to think about it when making a purchase.

For the mortgage, make a plan to pay it off before you retire. As long as you can do that just make your payment. As long as your interest rate is low any extra money should be invested (in stocks or on the Jeep both are good investments right?) not used to pay it down as you can make more than the interest you save usually.

Kids (college, braces, food?). Kids are tough, they'll be fine I hope..... They like to ride in the Jeep so they have that going for them.

Reality is, when it comes to spending money, the question is how much can I spend before the wife gets mad or more likely decides she needs something new as well.
Click to expand...

Good point about not even considering retirement saving as part of everyday income, I guess what I consider when money “could” go to the Jeep is savings beyond a maxed out 401k/Roth ira or similar retirement account.
 
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