Joelgjr
Member
Maybe instead of assuming everyone that commented is wrong and you’re right, you should reevaluate why you think everyone is wrong in life
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Maybe instead of assuming everyone that commented is wrong and you’re right, you should reevaluate why you think everyone is wrong in life
Think about it another way. All discretionary spending in relation to what is “appropriate” or affordable is relative to your situation and values. Do you have 1 year’s comp saved in rainy day fund? What percentage of annual income do you save? How many years to retirement? Have you invested in/saved for home? Other obligations and debts? What is risk tolerance? Overall financial priorities over next x years?
When all else is covered, what level of happiness do you get from spending more on a car? Is there a better opportunity for $$ you would save by getting a Corolla, entry level Tesla or whatever?
Sorry to preach. But I think discretionary spending is smartly governed by balancing big picture priorities. I never would have purchased the Tesla I did, without being comfortable that I was not compromising something else that was more important.
Just wondering what I need to aim for if I want to go this route. I see plenty on the road in SoCal but I don't have any friends to ask what they do for a living.
At around $185k a year, the model 3 performance was doable without much issue. The mortgage was the biggest part to fit in but we have my wife's salary to help with that.
I appreciate this response, but what I'm really after is more of human, guiding element. I have no one to mimic or aspire to in my life when it comes to salary and finances. I can answer some of those questions you raised, but at the end of the day I don't know what to do with an extra $3k a month besides invest or buy a rental property. I don't even know what the possibilities are besides these two things.
Sorry, but that is not the case. It's as simple as cash flow in and out per month. I'm asking people what their cash flow is like, or as you call it, their situation.
Not sure why I'm getting hate. Maybe the older crowd are the ones that can afford one? I see this at work too. The people over 40 are afraid to share compensation while the ones below talk about it at every happy hour.
I appreciate this response, but what I'm really after is more of human, guiding element. I have no one to mimic or aspire to in my life when it comes to salary and finances. I can answer some of those questions you raised, but at the end of the day I don't know what to do with an extra $3k a month besides invest or buy a rental property. I don't even know what the possibilities are besides these two things.
I can't believe that someone that is senior enough in life to earn $183k has difficulty working out why people wont post sensitive details in a public forum, nor can I believe that someone with the skills to obtain such an income cannot work out a budget.
Maybe you should apply the wife (SO) approval factor method. If she/he threatens divorce then you know you cannot afford the car. Or maybe it will clarify your desire or not for the car. Buying a luxury car is mostly an emotional choice, assuming you can afford it.
The smartest thing I ever did in my first job out of college was to listen to an older coworker who advised me to take advantage of my company’s saving and stock purchase plans vs buying a bunch of toys with my new income. I took his advice and made saving a life habit. It’s served me very well. Consequently I don’t buy cars unless I can afford to pay in cash. That’s been my path. YMMV.
I have a somewhat (not exactly) similar occupation as you do. However, I don't have a Model S with ludicrous mode. In fact, I didn't think I could ever afford a new Model S, despite the tax break - at least not as long as I would keep my classic Porsche (which was my childhood dream that I've owned for 20 years, so I'll be very reluctant to ever sell it).
...
Is my situation anything like yours? I have no idea, so this may not help at all...
Still, I'd like you to take away the following lessons:
a. You can make some compromises that save you a lot of money (buy used, and perhaps not top of line)
b. Preserve cash, so you can deal with uncertainties or better opportunities despite the car
c. I know nothing about finances, so don't feel bad if you are not sure what's right. You are not alone.
If you have no one to help you with your finances, let me help guide you a little. And yes, I’m one of the over 40 people you sort of offhandedly blew off earlier. Basically you’re totally asking the wrong questions.
An S with autopilot, a color other than black, and ludicrous will cost $139,000. Assume it is financed at 3.75% for 72 months, At the end you’ll have a 6 year old car for which you’ve paid $155,439. It’ll be worth about 1/3 of that. You’ll be out about $100,000.
Now assume that instead of buying the car, you invest that $2159 per month and you are minimally wise with your investments making 7.2% per year. At the end of 6 years you’ll have $193,715. Now suppose you never put another cent in but leave that money invested at 7.2% for 30 years, assuming retirement in 36 years. That money will have increased to roughly $1.67 million.
So your choice right now is that you can retire with the distant memory of driving the car for 6 years, or you can have an extra $1.67 million. We all get old. You included.
Or you can buy a new car.
What I can tell you is that there are numerous folks on TMC I know personally especially in the Del Mar area - surgeons, senior scientists, folks in venture capital, private equity and just plane ol' entrepreneurs who have had one or more successful exits (largely through our active angel/VC group). Many make well over $600K although the range can vary a bit on business and bonus as you say. Almost everyone has one or more nice homes, most have decent to nice cars (perhaps $30-$100K) and only one has a P100DL and a Ferrari because he deems that important and that's his business.
There is no magic number beyond a certain level of financial comfort and security - and that varies for each person. In our case, my better half reminds me we'd much rather do things like take a trip to Antarctica or fly the A380 in business class en route to the Maldives. I know many folks who make far, far less but have better/faster/more expensive cars - and that's just fine for me since I don't want debt of any kind and value financial freedom and peace of mind.
You never know when you NEED to retire... that's the thing. There is a temptation to try and keep-up with the Jones' - particularly in Southern California. A friend of mine once described it as "You ARE your car".
Do you feel like you missed out on anything at all? Say, being able to drive a fast car when you were still young and agile (if you aren't now)?
No, because financial discipline allowed me to escape a life in corporate America that I didn't enjoy and move to a resort town when I was in my mid 30s. I bought myself freedom first. Then Teslas. But hey, life is about priorities. You should do what will truly make you happy in the short and long run. While I'd surmise that my Tesla's are among the best things I've ever owned, in the end, they are just things. (albeit awesome things!) Things only give me so much pleasure. Time to do what I want gives me far more pleasure. Financial discipline has effectively bought me time to do what I want. That was my priority.Do you feel like you missed out on anything at all? Say, being able to drive a fast car when you were still young and agile (if you aren't now)?