according to the basic rules,if you live in a $500k home..

[Dancing Fire]

you can buy a car up to $60k= 12% of your home value.

you can buy a E-ring up to $30k = 6% of your home value.

 

[pearcrazy]

I guess you COULD do that but who says that anyone needs to conform to any sort of formula when it comes to such items? I COULD buy a $30,000 ring or I COULD buy a $60,000 car because I choose NOT to live in a $500,000 home.

 

[jewelgirl]

That is kinda scary...I live in a 600 k home, and I drive a 92 nissan sentra, and have an ering worth abt 15k!

Guess that doesn''t work for me

...but then again, I guess it is also choices we make, right?

Where did you get those stats DF?

 

[Mara]

what basic rules are these? never heard ''em before.

 

[cflutist]

Yeah DF, where did you get these "rules" from?

 

[WTNLVR]

O.k.. I live in a +$600K and if I wanted to be in serious debt I could have loans up the ying yang and have a fancy car, etc... I choose to live debt free- minus the mortgage and a small car loan. It sounds as if they are basing their figures on income as it relates to the size of your mortgage? Sounds funky to me.

 

[AChiOAlumna]

Wait...I''m confused...are we talking about the market value of the house or the size of your mortgage?? My house is "valued" at over $500k, but my mortgage is less than $140k...that''s what we can afford...

So based on those numbers, what kind of car "should" I be driving? We both drive Hondas...and my w-set is approximately worth $12k....huh?

 

[websailor]

DF,

Thank goodness these rules don''t apply to upgrades!

Cflutist already has her e-ring, but by these rules she would doubled it''s size based on our house value!!!! Think of how long it would take to find one of those!!! We''d probably have had a 10 year engagement!!!

 

[ursulawrite]

Crazy, crazy rule! I''ve never heard of it and we certainly don''t fit into it.

We bought our apartment last year for $1.3m, intend on buying a $1m weekend home in the next year, but...

my e-ring is probably worth about $12k.

Reckon it''s time for an upgrade?

 

[MaryAlaina]

Well, I do drives a Mercedes (SLK320), but it didn''t cost $150,000, and my ring isn''t worth $75,000, though my collection of rings may be. Never heard of that formula before.....

 

[Dancing Fire]

it''s base on the value of your home,not your mortgage.remember, i said up to,not have to. why do you think there are bigger E-rings and more expensive cars in Ca and NY? b/c, expensive homes goes with expensive cars and expensive rings.for example ; look at parts of midwest where homes aren''t as expensive, they say it''s rare to see a 1ct E-ring in those areas.

you girls can laugh all you want.remember when i told you about the diamond-in-relation-to-finger-size rule.

well....a few of you did try it and agrees with the rule.

 

[Jennifer5973]

DF, I can''t figure out which topic you''re more obsessed with: mortgages/real estate/income-to-debt ratios OR food.

 

[Mara]

Jen that''s a tough one...

 

[cflutist]

ROTFL ... Don''t worry DF, you''re still my cyber friend.

 

[Dancing Fire]

Date: 7/31/2005 11:48:06 PM
Author: Jennifer5973
DF, I can''t figure out which topic you''re more obsessed with: mortgages/real estate/income-to-debt ratios OR food.

Jenn
LOL...Grey Goose !!!!

j/k .... cognac for me.

 

[Dancing Fire]

Date: 7/31/2005 9:32:17 PM
Author: websailor
DF,

Thank goodness these rules don''t apply to upgrades!

Cflutist already has her e-ring, but by these rules she would doubled it''s size based on our house value!!!! Think of how long it would take to find one of those!!! We''d probably have had a 10 year engagement!!!

WS

don''t look now,cflutist is over there licking her chops

don''t worry ,she''s already got a beautiful e-ring.

 

[OldBride]

This doesn''t make much sense to me. I live in a home valued at about 700k, but I purchased it for 335K. I only live in a 700k home due to appreciation, not due to my ability to afford a 700k home, which I can''t. So, if I can''t afford a 700k home, I can''t afford an 84K car or a 42k Ering either. So, when using this formula, I think I should use the cost basis of my home to determine my other purchases rather than the inflated current value.

So, using my home''s cost rather than value--
12% on a car would be about 38k. I drive an Infinity G35 which cost about 31k, so that''s in the ballpark.
We also put a 15K limit on the ering, so perhaps I need to buy a right hand ring with the difference. Or perhaps not, since the difference represents about a year of tuition at the UC school my younger son is attending.

 

[Madam Bijoux]

There are too many variables for that rule to be followed. For instance, someone who lives alone probably won''t want or need a 500K home, and someone who lives in a big city probably doesn''t need a car. Also, everyone has different priorities. I''ve driven through parts of Philadelphia where the houses are falling apart but there are 60 to 70K cars parked outside.

 

[jewelgirl]

DF what is the diamond in relation to finger size rule??????

Sounds interesting....

 

[Dancing Fire]

Date: 8/1/2005 8:02:46 AM
Author: Madam Bijoux
There are too many variables for that rule to be followed. For instance, someone who lives alone probably won''t want or need a 500K home, and someone who lives in a big city probably doesn''t need a car. Also, everyone has different priorities. I''ve driven through parts of Philadelphia where the houses are falling apart but there are 60 to 70K cars parked outside.

they don''t live there.they just do their drug business there.

 

[Dancing Fire]

Date: 8/1/2005 10:00:57 AM
Author: jewelgirl
DF what is the diamond in relation to finger size rule??????

Sounds interesting....

HERE''S THE BASIC RULE....(center stone only)
you can go up to a 2.5 rb if your ring size is 3.5 or....4ct if your ring size is 5; 5ct if size 6 etc,etc. and for fancy cuts you can go up to your ring size.

 

[codex57]

Date: 8/1/2005 1:12:03 AM
Author: OldBride

We also put a 15K limit on the ering, so perhaps I need to buy a right hand ring with the difference. Or perhaps not, since the difference represents about a year of tuition at the UC school my younger son is attending.

Yikes! Tuition''s gone up a lot! When I went, a year''s tuition only cost about $7-8000. A UC law school tuition only cost about $11-12,000/yr. I haven''t graduated all that long ago.

 

[njc]

I sure did get ripped of then!

I have a hand-me-down Chryseler and a 6K ring thats less than a carat

I should be driving a 51K car, and have a 26K ring that is 6 cts! HA!

 

[jaysonsmom]

Date: 7/31/2005 7:37:34 PM
Author:Dancing Fire
you can buy a car up to $60k= 12% of your home value.

you can buy a E-ring up to $30k = 6% of your home value.

I don''t know where you got these figures, but it''s time to show DH. Our home was recently appraised for $600K, and my car is only only about $38K and my e-ring $8k......wassup with THAT!

 

[Dancing Fire]

Date: 8/1/2005 4:27:05 PM
Author: jaysonsmom

Date: 7/31/2005 7:37:34 PM
Author:Dancing Fire
you can buy a car up to $60k= 12% of your home value.

you can buy a E-ring up to $30k = 6% of your home value.

I don''t know where you got these figures, but it''s time to show DH. Our home was recently appraised for $600K, and my car is only only about $38K and my e-ring $8k......wassup with THAT!

j''smon
yep...you better tell hubby about it.

 

[jaysonsmom]

Date: 8/1/2005 6:12:19 PM
Author: Dancing Fire

Date: 8/1/2005 4:27:05 PM
Author: jaysonsmom

Date: 7/31/2005 7:37:34 PM
Author:Dancing Fire
you can buy a car up to $60k= 12% of your home value.

you can buy a E-ring up to $30k = 6% of your home value.

I don''t know where you got these figures, but it''s time to show DH. Our home was recently appraised for $600K, and my car is only only about $38K and my e-ring $8k......wassup with THAT!

j''smon
yep...you better tell hubby about it.

He''ll be getting an earful tonight....especially when he starts talking about how great our stocks are doing.

 

[Mara]

DF those ''rules'' are ridiculous! I drive a 10 year old car...and my ring was 1/3 of what it ''should'' be in your calculation!

 

[Dancing Fire]

Date: 8/1/2005 6:43:06 PM
Author: Mara
DF those ''rules'' are ridiculous! I drive a 10 year old car...and my ring was 1/3 of what it ''should'' be in your calculation!

Mara
remember, i said you can go up to (not have to) those percentage and still look balance.in other words,if i live in a $250k home and drive a 60k MB,wear a 30k diamond ring,now...that would look out of balance.

 

[strmrdr]

How bout if i live in an apartment , drive a $2000 car, and wear a 1ct cz on a chain.
Will that balance out ok?

 

[OldBride]

Codex
UC undergrad tuition is about 6,400k a year now.