921b wwgd: should we upgrade the car with our car allowances?

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money money money 57 min 4 speakers 8 chapters transcribed 3 months ago
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What financial situation are Maya and Liam currently in?

Glen James 0:06
Today on the show, we are joined by another guest for a What Would Glenn Do episode. If you are new, welcome. Grab a seat. Put on that seatbelt. If you're an old hand around here, you know the deal. I go through our listeners because we mainly do this with people who listen to the podcast. I go through the listeners' current situation and also look at what they want to ask me, what some of their goals are. Then we'll swing back around and I'll let them know what I would do in this situation. If you disagree with me out there in listener land or in YouTube land, awesome, go at it. That's fine because this is what Glenn would do. I'm not speaking on your behalf, so you can't get too outraged if you disagree with what I say.
Glen James 0:52
Until then, we're going to have a really great chat. Who have we got here and what are we doing?
Maya 1:00
Hi, I am Maya and you're listening to Money, Money, Money.
Glen James 1:07
Before we get into it, this show is general advice only. I've got a license to provide that advice. Full details can be found in the show description. My name's Glen James, former financial advisor. I host this show and a show called Retire Right. I've got some books, the award-winning Quick Start Guide to Investing and the Quick Start Guide to Your First Property available where good books are sold or in the description. If you're new here, welcome. If you're an old hand, welcome to M3. Let's get into it right now.
Glen James 1:43
Rightio, we have got Maya and Liam, not their real names. If you are watching on YouTube, you'll see that there's a bit of a blur over Maya's face because she works in top security, everyone. We're talking government stuff. No, not really. Maya, welcome to PodVegas.
Maya 2:01
Thank you.

What factors should be considered when upgrading a car?

Glen James 2:02
Hey, how old are you?
Maya 2:04
I am 29.
Glen James 2:06
And how old's Liam?
Maya 2:09
31.
Glen James 2:09
Cool. And if I'm getting straight to the point, that's because I'm getting straight to the point. And before we keep going, Maya and Liam, 29, 31 years old, what do you want to ask me, Maya?
Maya 2:22
I want to get your opinion on whether we should upgrade our car and if you have any advice on, I guess, how much we should spend on said new car.
Glen James 2:33
Yeah, right. Okay, cool. What do you do for work?
Maya 2:39
I am a pharmaceutical sales rep.
Glen James 2:42
Ooh, big pharma. Pew, pew, pew. Actually, I'll tell you something. Do you know how people get outraged at big pharma? I reckon they should get outraged at big vitamin because the amount of vitamins in a lot of chemists and the cost of them is It's more expensive to buy a big tub of fish oil than it is for a script for your frigging heart medication or your reflux or something.
Maya 3:10
Yeah. Well, PBS is a wonderful thing.
Glen James 3:13
That's true. That's true. Yeah, you are right. But anyway, big pharma, come at us. And what does Liam do for work?
Maya 3:20
So he is a BMS technician. Okay.
Glen James 3:25
What's BMS?
Maya 3:26
Kind of a Sparky. Okay.

How does a car allowance impact financial decisions?

Maya 3:28
So he was a Sparky by trade, so electrician. What he does is kind of a mix between electrician and engineer. Right. That's probably the best I can explain it to everyone.
Glen James 3:39
In buildings.
Maya 3:41
Yeah. So big buildings, hospitals, high-rises, prisons.
Glen James 3:45
Yeah.
Maya 3:45
All of it.
Glen James 3:47
And are you both married?
Maya 3:49
Yes, so we got married just under two years ago.
Glen James 3:52
Oh, awesome. Very nice. Any kids?
Maya 3:56
Not yet.
Glen James 3:57
Not yet? The yet, is that yet as in next Thursday or maybe in a couple of years?
Maya 4:03
Honestly, that just depends on how long it all takes, I guess. I've actually just had a surgery only in February. With that, we have to wait at least six months before we start trying. So it's going to be realistically at least 18 months before we have a child in the world. So we've got a little bit of time to work with.
Glen James 4:25
Awesome. Do you have any pets?
Maya 4:28
We do. We have one Border Collie and two cats.
Glen James 4:33
What type of the cats?
Maya 4:36
Domestic, short hair. They're just little rescues.
Glen James 4:39
Just little cats.

What are the pros and cons of financing a new car?

Glen James 4:41
Yep. Awesome. So you would be a crazy cat lady, but because you've got a dog, that's fine. You've got pets.
Maya 4:48
Yeah, exactly.
Glen James 4:49
Okay. What are we doing for our incomes?
Maya 4:55
As in each of us?
Glen James 4:56
Yes. Sorry. What do you earn? Sorry.
Yep.
Maya 4:58
Yeah, no, all good. So my base is 102. I then get a $24,000 a year car allowance. I have super on top of my base pay and I have the option or like the potential to earn a decent commission.

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