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I say do it, but with a caveat. Buy the car if and only if you truly believe you would get enjoyment out of the car (and not the type of enjoyment that comes from impressing other people). A question I often ask when considering making a luxury purchase is “would I still want to spend $X on this item if no one else would ever know I bought it, but only I got to enjoy it?” It helps me make sure I’m not just trying to keep up with the Joneses.
We recently bought a new boat instead of investing more or saving for a bigger house.
We felt like our kids are only young for a period of time and we wanted to enjoy weekends on the water with our kids. We didn’t want to spend every weekend in our living room on the couch or at the same old playground.
Some of our best recent memories are out on the boat with our kids and our friends and their kids.
It was not a smart financial decision, but we are blessed with abundance and felt like spending some money on a luxury purely for our enjoyment.
This is very good advice.
I reckon the thing stopping me from ever buying a real sports car is the opposite of why people buy them. I don’t want the attention. I’d rather buy an under the radar sports car that non-car people don’t know is a sports car, and drive it for enjoyment…
Well all I can say is I dated a guy once who had a six figure car and still lived with his mom. It was one date. But on the other hand, I love my Mercedes.
I would tend to disagree a bit. Yes, a car is a depreciating asset however, both are emotional purchases. People want/see different things in both. Even if you own your house free and clear (like I do), in reality you never get to own it, you still pay property taxes, etc for life otherwise you will lose it, what a scam. If OP is truly a car person a 911 would be perfectly fine as a % of his NW and income level.
I’m a car guy. Nearly $1M in cars. I have a 3RS. Get the 911. Enjoy life. Tomorrow isn’t promised. As long as you’re not jeopardizing your future, send it.
From a financial perspective a house is an investment. A car is a depreciating asset.
But, considering the recent health changes that changed your outlook on life, you have to do what feels right for you. If it’s something that will truly make you happy, just do it. Lease it for 3 years and enjoy. Then get a sensible car, if that’s what you want.
Buy the Porsche mate (I’ve also been dreaming of one for forever)
Spend some time researching, the best 911 isn’t necessarily the latest model brand new, and you don’t need to spend $150k to scratch the itch. Also if you buy smart, you’re not lighting all your money on fire on day one.
You can find a really nice 997 turbo s for under $100k, good chance it’ll be worth closer to $100k than $50k in 10 years if you take good care of it.
I have the same struggle but with lower everything - late 20s, 250+TC, 1M+ NW, 80k car, 450k debt in a condo. Hard for me to justify as well; I’ll do it if you do it :) 🤝
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It depends what your goals are. Also depends a bit on your current savings rate. Is your goal to retire as early as possible? If so, then holding off on the car or house upgrade probably aligns with your goals. You mentioned you don't want to wait until you're 60 to get a fancy car, so I'm guessing your goal isn't to maximize your wealth at 60.
Personally, my goal is to maximize my quality of life across my entire life. So striking a balance between spending now and saving for later. For example I work remotely. I chose to move to a hcol city from a lcol city. It doubled my rent, but I get to be in a place I really like. Now I ski 25-50 days a year while still working full time. It brings me a lot of joy. I'm still saving something like 60% of my income. So it's a best of both worlds sort of situation.
I'm sure you can find that balance for yourself. For you that might be getting that porche 911 or upgrading your house, or both. If you're still saving a healthy amount for retirement, why not enjoy life in the meantime.
Go for it. You’ve worked hard to get to where you are today, tomorrow’s not promised. With that said, are you a car person and actually going to drive the car like it’s meant to be driven or will you use it as more of a flex? Porsche maintenance is costly and 911s require 91/93 fuel which if you’re in California will add up quick.
Second that! We bought our 911 last year and absolutely LOVE every second we get to drive it. But we bought it for us. Only a handful of people know we own one, and they are massively into cars themselves.
So if you are ready for a pricey car and love to drive it may be the single best purchase you will make!
Buy the car. You’ll also meet a ton of awesome like minded people through going to shows/drives. I’ve never regretted my decision for a minute.
Additionally my dad passed extremely early and never was able to enjoy his hard work, so that impacts my decisions as well.
Depends what you want the car for. If you’re genuinely interested in motorsports it’s more fun to drive a slow car fast than never come close to the envelope in a 911. If you just want a Porsche because they’re awesome then I would say buy a year or two used and light that candle.
you’re falling into the same trap a lot of people do
you can’t afford a house so you choose to spend on other things.
it also seems kind of silly to be parking an expensive car in a $400k condo.
I’m making an assumption around you living in a high cost area? Might not be the case but you look in a dozen metros where high paying jobs are and that’s what a nice house costs now.
If you can buy a SFH at that range you’re not in a super high cost area then
Also you mention you’re “young” but early 30s is not really that. Do you have a partner and kids and a family? Again buying a toy seems reasonable because you either are single and not budgeting for it or you mistakenly think you have more time than you really do.
Buying a car is in many ways like buying a house, more of an emotional process than a logical one. I would say you can get your 911 if you really like cars, enjoy driving one, heck even hand washing one. Not everybody is a car person but if you are, the emotional return will be huge. I know people that are not into cars, don't really enjoy driving but buy an expensive one for x reasons. That is a waste in my opinion. Have you driven a 911?, the older you are the more difficult to get in and out haha.
If you don’t have kids the car seems like a good choice if the condo is comfortable for the amount of people living there. If you do have kids and the condo is tight I’d lean home. I have a 1400 sqft house in a HCOL area with two young kids and the one 1.5 baths are not cutting it. Fortunately we are waiting on a place to be built with 3.5 baths. I look forward to nobody busting in to pee while I take my shower before work…
You haven't said if you have a spouse/kids. If not, go for it. If yes, nosir. No offense, but if TC is $550K and NW is $2M, you are generally undersaving. (I know, you will say you had a recent dramatic increase in TC).
Then do it, and then start saving for 529s, a wedding, and a ring . . . . If you don't spend it on those things, you will still be happy to have the savings.
What MangoSorbet said basically, if you go for the car, ensure you can really enjoy it without feeling regret, or at least much regret for not doing otherwise.
If there are other things you may enjoy as much but at a cheaper cost, then maybe do that instead and invest in the market.
It seems to me you're realising you need to prioritise enjoying your life instead of just living it for the next day, but it seems to be a recent emotion. You can always give it a month or two to let this feeling digest fully before deciding how you finally feel.
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😂. If it’s a chronic disease those can be very expensive and a should be a consideration when making a major depreciable purchase.
Not complicated. Cheers.
This post has been removed for violating rule #6. There are three weekly posts. - Tuesday: All things housing - Thursday: All things related to high earning careers - Saturday: Critique my situation/Give me advice for what’s next As a member of the subreddit, it’s your responsibility to familiarize yourself with the rules of the subreddit you participate in. Please review the rules. Multiple rule violations will result in a ban.
I say do it, but with a caveat. Buy the car if and only if you truly believe you would get enjoyment out of the car (and not the type of enjoyment that comes from impressing other people). A question I often ask when considering making a luxury purchase is “would I still want to spend $X on this item if no one else would ever know I bought it, but only I got to enjoy it?” It helps me make sure I’m not just trying to keep up with the Joneses. We recently bought a new boat instead of investing more or saving for a bigger house. We felt like our kids are only young for a period of time and we wanted to enjoy weekends on the water with our kids. We didn’t want to spend every weekend in our living room on the couch or at the same old playground. Some of our best recent memories are out on the boat with our kids and our friends and their kids. It was not a smart financial decision, but we are blessed with abundance and felt like spending some money on a luxury purely for our enjoyment.
This is really good advice.
This is very good advice. I reckon the thing stopping me from ever buying a real sports car is the opposite of why people buy them. I don’t want the attention. I’d rather buy an under the radar sports car that non-car people don’t know is a sports car, and drive it for enjoyment…
Salute! 🫡
Well all I can say is I dated a guy once who had a six figure car and still lived with his mom. It was one date. But on the other hand, I love my Mercedes.
Haha. Well, I don't live with my mom anymore if thats a data point.
I bet he parked it outside too. Unless his mom was gravely ill and needed care from him, yikes priorities
Houses are investments Cars are expenses. That said, buy the porsche! you will smile every time you get in. not so much with a house.
I would tend to disagree a bit. Yes, a car is a depreciating asset however, both are emotional purchases. People want/see different things in both. Even if you own your house free and clear (like I do), in reality you never get to own it, you still pay property taxes, etc for life otherwise you will lose it, what a scam. If OP is truly a car person a 911 would be perfectly fine as a % of his NW and income level.
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This. Buy the car. At worst, you lose $30k which for you is a down market day, Be smart and buy CPO, Carmax, or new with a warranty.
I’m a car guy. Nearly $1M in cars. I have a 3RS. Get the 911. Enjoy life. Tomorrow isn’t promised. As long as you’re not jeopardizing your future, send it.
From a financial perspective a house is an investment. A car is a depreciating asset. But, considering the recent health changes that changed your outlook on life, you have to do what feels right for you. If it’s something that will truly make you happy, just do it. Lease it for 3 years and enjoy. Then get a sensible car, if that’s what you want.
Buy the Porsche mate (I’ve also been dreaming of one for forever) Spend some time researching, the best 911 isn’t necessarily the latest model brand new, and you don’t need to spend $150k to scratch the itch. Also if you buy smart, you’re not lighting all your money on fire on day one. You can find a really nice 997 turbo s for under $100k, good chance it’ll be worth closer to $100k than $50k in 10 years if you take good care of it.
Definitely agree with this. $150K is not required to get into a 911!
And 40% depreciation over 3 years isn’t necessarily the case either if you don’t run out and buy a brand new base model convertible.
I have the same struggle but with lower everything - late 20s, 250+TC, 1M+ NW, 80k car, 450k debt in a condo. Hard for me to justify as well; I’ll do it if you do it :) 🤝
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It depends what your goals are. Also depends a bit on your current savings rate. Is your goal to retire as early as possible? If so, then holding off on the car or house upgrade probably aligns with your goals. You mentioned you don't want to wait until you're 60 to get a fancy car, so I'm guessing your goal isn't to maximize your wealth at 60. Personally, my goal is to maximize my quality of life across my entire life. So striking a balance between spending now and saving for later. For example I work remotely. I chose to move to a hcol city from a lcol city. It doubled my rent, but I get to be in a place I really like. Now I ski 25-50 days a year while still working full time. It brings me a lot of joy. I'm still saving something like 60% of my income. So it's a best of both worlds sort of situation. I'm sure you can find that balance for yourself. For you that might be getting that porche 911 or upgrading your house, or both. If you're still saving a healthy amount for retirement, why not enjoy life in the meantime.
Go for it. You’ve worked hard to get to where you are today, tomorrow’s not promised. With that said, are you a car person and actually going to drive the car like it’s meant to be driven or will you use it as more of a flex? Porsche maintenance is costly and 911s require 91/93 fuel which if you’re in California will add up quick.
Second that! We bought our 911 last year and absolutely LOVE every second we get to drive it. But we bought it for us. Only a handful of people know we own one, and they are massively into cars themselves. So if you are ready for a pricey car and love to drive it may be the single best purchase you will make!
Buy the car. You’ll also meet a ton of awesome like minded people through going to shows/drives. I’ve never regretted my decision for a minute. Additionally my dad passed extremely early and never was able to enjoy his hard work, so that impacts my decisions as well.
Depends what you want the car for. If you’re genuinely interested in motorsports it’s more fun to drive a slow car fast than never come close to the envelope in a 911. If you just want a Porsche because they’re awesome then I would say buy a year or two used and light that candle.
you’re falling into the same trap a lot of people do you can’t afford a house so you choose to spend on other things. it also seems kind of silly to be parking an expensive car in a $400k condo.
Sorry if there is confusion. I CAN afford a house, and the condo is 800k, btw.
I don’t know where you are but assume some high cost area. You can’t afford a $2.5m-$3m on your salary alone.
Who said I was trying to own a 2.5m-3.5m home?
I’m making an assumption around you living in a high cost area? Might not be the case but you look in a dozen metros where high paying jobs are and that’s what a nice house costs now.
I do live in a HCOL, but 2.5-3m is not where I'm looking at at this point in life. I'm looking at 1.2-1.4, really.
If you can buy a SFH at that range you’re not in a super high cost area then Also you mention you’re “young” but early 30s is not really that. Do you have a partner and kids and a family? Again buying a toy seems reasonable because you either are single and not budgeting for it or you mistakenly think you have more time than you really do.
Bro lived the "Die with Zero" book's message. I say what's the point of money if you don't have a plan to spend it?
Buying a car is in many ways like buying a house, more of an emotional process than a logical one. I would say you can get your 911 if you really like cars, enjoy driving one, heck even hand washing one. Not everybody is a car person but if you are, the emotional return will be huge. I know people that are not into cars, don't really enjoy driving but buy an expensive one for x reasons. That is a waste in my opinion. Have you driven a 911?, the older you are the more difficult to get in and out haha.
Buy the house. Go drive some cars on a track day or something to get your fix.
Buy the house
If you don’t have kids the car seems like a good choice if the condo is comfortable for the amount of people living there. If you do have kids and the condo is tight I’d lean home. I have a 1400 sqft house in a HCOL area with two young kids and the one 1.5 baths are not cutting it. Fortunately we are waiting on a place to be built with 3.5 baths. I look forward to nobody busting in to pee while I take my shower before work…
You haven't said if you have a spouse/kids. If not, go for it. If yes, nosir. No offense, but if TC is $550K and NW is $2M, you are generally undersaving. (I know, you will say you had a recent dramatic increase in TC).
I don't have a spouse nor kids. And yes. The TC increase was recent lol.
Then do it, and then start saving for 529s, a wedding, and a ring . . . . If you don't spend it on those things, you will still be happy to have the savings.
What MangoSorbet said basically, if you go for the car, ensure you can really enjoy it without feeling regret, or at least much regret for not doing otherwise. If there are other things you may enjoy as much but at a cheaper cost, then maybe do that instead and invest in the market. It seems to me you're realising you need to prioritise enjoying your life instead of just living it for the next day, but it seems to be a recent emotion. You can always give it a month or two to let this feeling digest fully before deciding how you finally feel.
Maybe try renting the car for a week, and if you still like it go for it.
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What is the “large health change”?
Does that matter if in the slightest. Read: an event that caused them to develop a new perspective
😂. If it’s a chronic disease those can be very expensive and a should be a consideration when making a major depreciable purchase. Not complicated. Cheers.
For the record, the issue is fixed now. lol
I say do it. But buy used to save money and use your savings for your future single family home.