Related Posts
Will states start imposing sales tax on NFTs?
Coach
More Posts
Scaler academy is genuine? Pros and cons plz?
Chief
Pro
Additional Posts in Personal Investment Chatter
Will states start imposing sales tax on NFTs?
Coach
Scaler academy is genuine? Pros and cons plz?
Chief
Pro
Yes
Do it! I make less than $100k and bought a new Audi S4 when I was a staff. Probably shouldn’t be in this bowl but life is too short to be a penny pincher IMO
You could say you make 300k base with a million dollar net worth and this app would say no. Make sure you can still save for your future and go live your best life.
I think it is generally financially irresponsible to buy new cars. (And btw - my husband will only buy a new car so I don’t walk my own talk but that is what it is)
But, you might post on here what a model 3 costs because we have a Y and apparently that is an “expensive” car to some people - even though it cost less than my Chevy Tahoe which is apparently a normal car. People think tesla = expensive and it does not.
Chief
Thanks! Appreciate the info. Maybe I can convince my wife to let me buy one too...
Pro
https://www.financialsamurai.com/net-worth-rule-for-car-buying-guideline/ here they recommend spending no more than 5% of your NW on a car. Spouse and I are around 1.7, we still don’t want to spend 85k on a car (and in fact have no cars). Each person’s comfort level is different, but I wouldn’t if I were you.
Pro
Why is his passive income an irony? He’s not a self proclaimed investor/stock pickers. There are far more self proclaimed traders that only make money now from selling courses—that’s the irony.
For this rule only, he’s extrapolating on the 10% salary rule—spend no more than 10% on your salary on cars. It’s harsh, but it’s how you get to FIRE. I appreciate that not everyone wants to retire in their 30s or 40s. Those people can disregard his advice.
No.
Lease vs. buy enters the room…
No. The model 3 also retains value better than any other car. Ofc that might change in a few years but I doubt it given the current supply/demand.
This 👆. Model 3 is a great choice, however be prepared to wait for several months. I got my model Y after waiting for 4 months, and it’s an investment as of now. I can make somewhere between 3k to 7k over OTD price if I sell the car now. No one understands how the price of Tesla cars and stocks work.
No. Teslas are likely the best car as far as finances are concerned. My model 3 has appreciated since i purchased, which isnt normal but worth noting. They hold their value very well even in regular times, have little to no maintenance, and an excellent warranty. Let me know if you'd like a referral code!
Model 3 SR+ is an excellent value for a car. 40K base and you can finance for 2.4% over 60 or 72 months. I hesitate to call the “affordable” Teslas (model 3 and model Y) luxury cars, however I think if you can swing it, you’ll find that it won’t be too much of a burden on your wallet for this higher end vehicle if you budget correctly.
FYI I am at 110K base in LCOL with Model 3 SR+ and I found that total cost of ownership is about what I was paying for my 2018 Toyota Camry (loan, gas, maintenance, etc). I charge at work for free and have had virtually zero maintenance cost since I have owned the car.
I don’t care about cars but I spend a lot on vacations instead. You are supposed to enjoy life before you retire too. Life is short, you never know if you would be even able to use all your savings
It depends.
What's your target retirement number?
What's your age?
Do you want to retire well before 65? If so what age?
What's your total annual expenses and savings?
Answer me these questions and I'll tell you if it's irresponsible or not.
Will the purchase of this vehicle bump your annual expenses above 36K over the new few years (if so it's not a big deal still - see below)?
I'd say you're on track to hit your $2 million goal as long as you keep investing at least 50K into primarily equities (I assume index funds). Since you're considering retiring this early, you may need to think about some allocation to bonds if you're currently 95%+ stock/crypto.
If you want to be conservative, you can assume 6% rate of return, but if you have a decent allocation to crypto, this might actually blast you early retirement with the return boost, assuming you take in some profits along the way and re allocate a portion into less volatile investments.
So not irresponsible at all. And in the event you change your mind a few years down, you'll likely be able to recoup a good amount of money since resale value is relatively great.
This doesn't even factor in any future salary increases + bonuses and social security (yes you will still get this - don't listen to people suggest otherwise because they have no idea how SS works).
Life is short, enjoy your money when you're in this current position.
Model S or Bust
20% down, 3 year note, monthly payments < monthly investments.
If you can do that, then yes 👍
Lol I bought my Model 3 midrange making 100K with 25K down so IMO I think you’re good. But comes down to how liberal you are with your spending. My rule of thumb that works for me is that your car shouldn’t > 0.5*annual income.
YOLO
Yes
My senior bought one this year. He can’t be making more than 90k
Senior associate at a Big 4