Financially Irresponsible or Worth It?

[Gagan]

good decision

Thanks!

When I was the OP's age I had 2 paid off cars. Accidents, leases, being suckered into the flashy new car culture, and 7 years later now I pay $900/mo for 2 vehicles. I wish I could go back in time when I didn't have to make car payments. I have the income to support it, but car payments are the worst! Live and learn.

Yeah, I guess the decision for buying a car shouldn't be whether you can afford it but rather, is it worth buying a car or increasing your wealth. Although the new expensive car is tempting, it's not the right choice for now.

Do you have an emergency fund of any kind? Your budgeting goes in the shitter if you have a sudden $5000 bill or lose your job. $500/mo in free spending certainly won't go as far as you think it will. Your family may not appreciate you living with them rent-free if you get such an expensive car. Here is how my salary trend went, and the cars I owned around that time (last 6 years). I think of myself on the much more fiscally irresponsible side of things. Insurance for me has hovered around $100/mo - $130/mo, even as the cars got more expensive. I also pay $220/mo for two parking spots -- one in downtown austin, and one at my apartment. I am 28 years old with only 1 accident on record, no traffic infractions ever:

2011 Chevy Malibu preowned -> $220/mo financed. Made $60k/yr I crashed this car
2013 Chevy Cruze new -> $300/mo financed. Made $65k/yr. I got bored of this car
2013 BMW Z4 preowned sDrive35i -> $650/mo financed. Made $90k/yr. This car broke a bunch
2014 Audi A7 preowned -> $700/mo financed. Made $95k/yr. This car broke a bunch.
2014 BMW Z4 sDrive35is -> $730/mo financed. Made $120k/yr incl. bonus. This car sucked gas and I started driving further distances to work (new job)
2017 Tesla Model S 90D -> $1060/mo lease. Make $145/yr incl. bonus+stock options. This car is awesome.

That's very impressive and thanks for the numbers. One day, I'll list my vehicles too... one day...

Everyone has different priorities but I personally don't think anyone should ever buy a car worth more then their entire yearly salary esp when factoring higher insurance and maintenance costs. Take a hard look at your taxes as something isn't adding up with the numbers your mentioning. Also max out your Roth IRA which I believe is $5500 a year while your income is low, and put some money into your retirement accounts and invest a portion. Then play around with the rest with what you want. I think life experiences and travelling the world would be something to consider as you have more flexible time when young and depreciating assets like cars can always be purchased used at fraction of the cost if tight on budget.

I wish I could travel the world but that's a different issue... and as for the numbers not adding up. Mentioned it before but I rounded the numbers conservatively to be on the safer side.

Let me give you some insight into my sophisticated financial formula and thought process...

I call it, the Buttershrimp/Immanuel Kant Method of Financial Imperatives..... it goes something like this....

"You wussy.... will you please just grow a pair and buy the car? Or maybe just keep making delicious and cute click baity threads for me to read in between my twice daily orgasms, better known as a daily commute."

If you find the content of this post lewd or offensive, please be aware that Immanuel Kant lived in a different time and was a clearly a real potty-mouth when it came to financial philosophy...

Wait... what...? I don't get it...

 

[buttershrimp]

Thanks!



Wait... what...? I don't get it...

Ah, That’s a shame, the humor in that post is impressive .... it’s on a @calisnow level if I do say do myself.

 

[calisnow]

Ah, That’s a shame, the humor in that post is impressive .... it’s on a @calisnow level if I do say do myself.

We Kant all get the jokes.

 

[nanijoe]

@Gagan,

Please just get a new job...No way should a developer be making $40k in California. Don't listen to people advising you to wait 2-3 years. Start looking today.If you can code "Hello World" in any language you can make double what you presently make.
Whether or not you buy a Tesla at that point is a whole different story.

 

[buttershrimp]

We Kant all get the jokes.

Nice!

Seems to me that this means he definitely should not buy the tesla... maybe go with a boosted board?

 

[Gagan]

@Gagan,

Please just get a new job...No way should a developer be making $40k in California. Don't listen to people advising you to wait 2-3 years. Start looking today.If you can code "Hello World" in any language you can make double what you presently make.
Whether or not you buy a Tesla at that point is a whole different story.

Thanks and I know the average salary for junior developers is way higher than what I currently make. I rushed and took the first offer I received since I had no professional experience and getting interviews took months. I will look into a new position soon though since I now have some experience at least. Thanks!

 

[sdugan99]

A fellow Indian in the house! I placed my reservation down on Model 3 on the day of unveiling but after saving up money as a Physician, I finally decided to buy a new 90D two weeks ago and couldn't be happier with the decision since I probably will have regrets if I purchased Model 3 when it comes out. In your case, I'd wait to buy Model 3 which you might still get by next year. At least you don't have to pay rent. Wish that was the case for me as well since I live an apartment. But then, I wouldn't be getting people gathering around my car and being amazed by it almost on a daily basis
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Great looking car. Pick up my Blue 90D on Saturday!!! Can't wait!!!!