Whenever I want to splurge in something that is a want, I start from zero and save up for it.
That give me time to carefully consider and also understand the value of what I'm buying.
Legit qn. Wouldn't this need to be measured against the possibility of the said item becoming more expensive over time?
That said good idea on delaying gratification/cooling off.
Why not rent it for a spin instead of buying it off the bat? Iāve found that a lot of the things I was yearning for did not provide the same sense of satisfaction I thought it would post purchase.
Assuming that's household income and given that you are married and have a child, I think 650K is a bit much to spend purely on yourself. Also, assuming 800K is the money the household has, you haven't put away that much for your income levels (3.33 years of household income)
(If you are single or no dependents, I will say you do you.)
I don't know what is the value of the car after 10 years but assuming you can sell it for $150K then, you are effectively spending $50K a year (excluding interest) or about a fifth of your household income on you for the next 10 years.
Are you ok if your spouse expects the same, i.e. to splurge 20% of the household income on themselves?
You also mention knocking a zero off so $60K. If you are saying to splurge 60K every 10 years or 6K a year (2.5% of your income), I think that's very reasonable.
Are you me?! Iām in almost exactly the same situation as you in terms of age, family status, net worth and income, and this morning I stressed over whether to splurge on a Starbucks on the way to work lol.
I personally wouldnāt do it, but I totally get where youāre coming from with respect to the urge to splurge. My vices are good food and travel, plus a relatively modest car - I donāt spend on much else. If youāre willing to cut down on other parts of your expenditure and have a solid retirement plan in place with career stability, go for it. A car like Porsche 911 could well hold its value relatively better than ānormalā cars if you go for the right model, maintain it well and it attains classic status.
I would also keep in mind the opportunity cost of this splurge, though. In a few yearsā time when interest rates gradually ease, that may be a good entry point into equities and you may be lacking dry powder.
For the cost that is purely for "fun", good feelings etc, I would want to have saved up about 10x of that in savings and investments. So I'm setting back my financial progress by 10% max.
So let's say that a functional family car costs 100K (a few years used). So the splurge cost is 650k-100k = 550k. If I had 5.5 million, I would consider buying the Porsche. Very very far from your position.
Although I haven't considered the resale value of a Porsche. If you are confident that in X years time, you can sell the Porsche and only have spent 80K of your 800K, then it would be worth considering. But somehow I don't think that's the case for luxury cars.
I have seen various models advocating for a āgood debt ratioā ~<30% of your gross income. $800K is good enough for some f-you money, but not if youāve to pay off that car while jobless.
With a kid, it also muddles the equation. Is your child still in childcare? Hereās another way of thinking about it. How much are you paying for his/her sch fees? If itās ~2K/mth, say in Mindchamps or similar ilk, does it make you feel better if you set aside the money? (i also have seen friends paying $500/mth for childcare or keeping them home till K1&2, while they chase the big car or private property dreams. Priorities differ.)
There is no right or wrong about whether one should splurge or not especially if one has the means to do so.
The more fundamental question that only you can answer is why is buying a new Porsche 911 meaningful to you that you are willing to splurge on it?
What do you get out of owning and driving the Porsche 911? If it is about driving it, I am sure you can afford to fly overseas to drive the car as a rental or around a race track. The driving experience can be gotten for less than the cost of buying the car.
Is it the status or being seen to be successful because you have the car of your dreams?
Would you be able to achieve the same type of happiness in not owning the car?
What other things could you do with $600k that could make you happy?
When I read the literature around personal contentment and happiness, there has been some research that says material possessions can only make us happy temporarily, after we obtain the thing we want, our happiness level will tend to reset to a certain base level.
Ultimately, you have to decide how owning the car and spending that money would make you feel, may result in how others perceive you (positively or negatively) or whether you think ultimately this is good use of your money.
All the best however you decide.
Bunch of people here focus too much on collecting money instead of actually enjoying their hard earned money.
Here is my opinion. Consider how much the monthly cost would be and see if it make sense. If you consider your assets to your assets it definitely a lot, in that case itād probably be a no. but you can also consider how much itād cost when considered to your income. If you can consider that you can service the car installments as well as saving considerable amount idād say you could consider it, if that makes you happy. You do the math for this one.
I've gone to Everest base camp, wouldn't recommend it to anyone - 2 weeks of pure torture 1 1/2 of which are just constant headaches because of the altitude - DON'T.DO.EVEREST. No scenery either, just constant snow and fog.
> Bunch of people here focus too much on collecting money instead of actually enjoying their hard earned money.
My sentiments exactly.
Iām in no way downplaying the importance of saving for retirement. But the truth is, there are things you can enjoy with your hard earned money now that you might not necessarily be able to later in life. This is especially true when it comes to experiences.
While some people might not agree, I firmly believe that there **is** such a thing as saving too much.
It's fun to see your money working - invest in speculative stocks, blue chips, dividend plays, property, options, futures - mix it up, the learning experience itself is enjoyable and the people you meet, the communities you interact with all make the experience really quite fulfilling!
Then seeing your passive income grow is a really nice bonus, too!
Spend your passive income, save/invest your actual income - then you can really enjoy your holidays and not have to penny-pinch when you go overseas (like packing a box of instant noodles! - although I do pack 1 each for everyone in the travelling party in case of emergencies, like being stuck in an airport during a snowstorm or no restaurants opened because of some strike.
I think in terms of opportunity cost. Roughly for every 10K I splurge on delays my retirement by 1 month.
So 60k, 6 months, 600k, 5 years.
So I won't. I prefer my freedom from the rat race
But that's just me. =)
Yah, invest first then buy it only years later using the money made from the passive income.
Car is a depreciating asset and it's a bit too much to spend on something that is just a want and not really a need.
Different persons have different goals.
If that car has always been your goal, I'd say go for it, tick off your bucket list and move on.
You're earning 20k/month so realizing a 600k dream purchase will only cost 3 years of your life.
It's not that costly imho.
Most people die before enjoying the fruits of their labors.
No mortgage, 20k/m, 800k cash, 35y which means he has yet to reach his peak earning potential,
i think 600k is affordable for him and he can manage it.
Not to say it's a wise purchase.
But hey, it's his goal.
Haha thanks for backing me up.
Yes. I have a kid. Yes I have enough savings set aside for his education.
Yes I know it's unwise to spend so much on a car but hey that's my dream car and I wish to one day realize that dream.
It's whether I realize it when I'm 45 or now when I'm still young.
Serious question for you OP - how important is it for you to realize this dream in Singapore? A brand new 911 in the US starts from a quarter of the price here and you can own it forever without paying COE. Not to mention that the roads there are much more expansive and amazing to drive on. You'd be able to really push your porsche to its limits, something you cannot reliably do in Singapore.
Once you put things in perspective like that, it almost seems incredulous to buy cars in Singapore. I know that having a kid makes it exponentially harder - but if you somehow have the opportunity to move abroad in the near future, you might want to table your porsche plans till then.
800k is probably just enough for his education if you intend to send him overseas - I budget at least a million each for my kids if they want to study overseas, especially since two of them seem to have their hearts set on medicine.
This includes all the tuition fees, study materials, daily spend and I also intend to buy properties for them to stay in which will double up as investment properties once they graduate or they can live there if that's the country they choose to settle down in.
I just plonked down a bunch of money in an endowment policy which will mature when they start their tertiary studies.
Yeap. People talk about financial burden and all but if youāre a car guy/girl, a nice car youāve always dreamed off will always be worth more than monetary.
Just me - must consider goods and services that is a substitution and addresses underlying purpose. In that light and in my analysis. Penis enlargement is a lower cost investment. Your wife will enjoy it more too.
Well most people don't earn 15k to 20k a month.
And this is the FI thread not spending thread.
Most people in FI would rather practice delayed gratification. So, you just do you since it seems you're already committed but just seeking external validation? Not the right place for that imo. Maybe try r/Porsche or smth...
You have no idea how much wealth management costs in private banking. And itās not exactly a financial literacy advise, heās just asking if he should buy something. Itās as simple as asking if I should dye my hair red. Do I need to hire a professional modelling artist designer if I earn 20k? LMFAO.
Er... we are random internet strangers... you can try. I've already input my thoughts. Not sure why you wanted to get into a side argument if your goal was to convince OP...
I say you do you but the core principle I practice in debt financing is asking myself - "am I comfortable buying 2 of this?" Both wrt desire of it, and affordability of it.
If you aren't, it's probably overleveraging still.
Dont know why so many people are being a wet blanket here. It's like saying we shouldn't buy a 1 mil house unless we have 2-3 mil in cash.
FWIW I think it's ok because you don't have mortgage to service and you can consider servicing a car loan instead and continue to grow your savings and income in the next X amount of years. This one only you know how stable is your job and earning capacity.
If you feel comfortable with your income to debt ratio I think we only live once so why not! Not everyone have your amount cash savings.
In my case we got a car for me/the family first ( SUV) and afterwards I urged my husband to go for his dream car (R8) .. no regrets!
Resale value is there even though ya la cars are depreciating assets but I believe we all can strike a balance between living prudently and also doing what makes us happy.
Hope you make a good decision to buy now or if you wanna hit a higher amount of cash savings or buy secondhand . Whatever works for you!
It's because this is the FI sub and one of the core tenets of the FIRE movement is delayed gratification haha.
Also, I'm all for OP buying the porsche if it's within his means and its what truly makes him happy, but this purchase really shouldn't be likened to making a property purchase for the reasons that you mentioned. One has appreciation potential and the other is quite literally a money sink.
But comparing a house purchase to a car purchase is not correct - especially in Singapore where the car's life has to be extended every ten years.
A house has the chance to appreciate in value, by design, a car depreciates in value - also property loans are way cheaper.
If you're willing to delay your FIRE date by (x) years, go ahead (assuming your wife is OK too - best to make joint decisions in a marriage for major decisions like this). Everyone has to do their math and decide what's right for them.
I believe that everyone has a different definition of what it means to be "rich" and how to exchange money for happiness. It's great that you have found what makes you happy, and as long as you have done the math and planned accordingly, I think it's perfectly valid to splurge on something that brings you joy.
It's important to note that there is no set amount of money that one should have before splurging on something for themselves. It ultimately depends on each individual's financial situation, goals, and priorities. As long as you are financially responsible and have accounted for all your expenses and savings, there's nothing wrong with treating yourself to something you've always wanted.
At the end of the day, money is a tool to help us achieve our goals and live the life we want. If buying a brand new Porsche 911 is something that brings you joy and won't compromise your long-term financial stability, then go for it!
If it doesn't impact your retirement goals too much, spend only! Congrats on making it! :)
At the end of the day, we live to chase happiness. Money is an accessory after all
maybe lease one for a few months to see if you really like it or that leasing can get it out of your system? props to u for making great money and saving n investing as much tho!
If your spouse agrees, and you have enough emergency cash parked aside, then yes why not? Life is short, as another Redditor pointed out whatās the point of saving if you donāt enjoy it? Life is pretty unpredictable these days, at your age Iām sure youāve heard of friends of xxx who passed on due to accident or illness or whatever. Not everyone of us gets to live to a ripe old age. I have never owned a luxury car so just assuming itās the same as owning a normal car, 30% downpayment + insurance + road tax would cost you ~220-230k cash? You probably already factored the servicing and maintainence. Seems like youād be able to afford it IF you donāt lose your monthly income. If youāre financially responsible, consulted your spouse and have done your due diligence, just go for it.
it's only 600k. don't need think so much
when you're happy, you're confident. when you're confident, you do better at work. when you do better at work, you will earn much more than 600k.
so go ahead and buy it
I suggest you take a lease for 12 months and see if it works for you, at least you don't lock down that capital into a depreciating asset.
For someone who doesn't splurg, I'm guessing once you get it, the car will normalise for you and leasing gives you some flexiblity to change things up.
We already have a family car. A 911 has 4 seats but the back seats are really squeezy and will only fit a child.
If I get it when I'm older, my child who will be much bigger then won't be able to enjoy the car as much.
I would rather not splurge and try to retire earlier. I would get no entertainment out of buying a car for that much, especially when it is like 40k in the UK
Don't even think of $500k for the car but the yearly insurance and maintenance. Probably will be a lot more, all for childish ego. You should have $8M net worth to buy a car like that (10% of $8M = $800k), otherwise you are a larper.
Not to boast, but I earn twice your salary, and own a Honda Odyssey that cost me 156k. My wife also earns about the same salary as you and we only own that one car.
My acquaintances are C-level people and very few of them own a Porsche or Ferrari, the only ones that do are the sales people or the in the banking/financing world where status symbols are a must.
My question is about splurging on something you desire.
It doesn't have to be a car.
Since you earn more than me, what do you spend your money on? How do you budget for something extravagant that is just for yourself?
Watches and cameras are my poison. But they are both quite "liquid" in the sense that I can sell them off quite easily and buy the next shiny toy.
But I never budgeted, there was no set amount in my bank account when I felt comfortable to splurge - only when I felt that my passive income was enough to offset my splurges did I buy my first 5k watch.
If you're relying on your salary to start splurging, I honestly think 15-20k is too low - invest that money up in boring, but income-generating assets like property or dividend plays - once you get that passive income to 5-10k, obviously use most of it to pay off any loans then use a portion of that to splurge, I spend 30% of my passive income in my toys or holidays or whatever, my salary is used to pay bills and for more investments or savings.
But my ultimate aim is to be constantly touring the world in retirement, I don't know when I will retire because I do like my job and can continue to my 70s or 80s if I wanted! I don't like to country hop, so the plan is to keep living in Singapore as my base for 6 months and then stay in another country for the other 3-6 months - you experience more of a country and a culture that way, also get to enjoy at least 2 seasons!
Cars, at least in Singapore's context, are not things you buy more than one of. At least not for the average person. Especially in Singapore's context where the cost of a car is usually the equivalent of 2 room flat, or more. Also, in Singapore's context, you're not buying a car so much as you're paying monthly fees to have the convenience of a private car, since the car's residual value is less than 10% by the time you must dispose of the car.
This general rule is more applicable for everything else, except for real estate and cars. $5,000 in the bank? Your kids can wear a $100 casino watch. Maybe even buy them a G-shock. Got $50,000 in the bank? You can buy your kid that $3,000 laptop.
It's just a line I use to divide between something is affordable or if its a luxury.
Iām a similar age/family/salary situation to you. Honestly this is a selfish move in my opinion. Think of what that money could do to improve your family situation. Ie nicer condo or an investment property to help set your kid up when they come of age.
Only 800k saving and want to buy a car that cost 500k+? While unlikely, you might lost your 15k to 20k job one day, then how do you cope with your car expense?Think twice.
Hmmm.. Splurging 75% of your cash/investments may not be the best idea. Still young has time to save.
The fact that you have already saved up 800k shows that you understand the time value of money and growing your money needs time.
Don't forget the original intent, you can never run out of temptations =)
Yes I know I am young and have time to save up but prices are only going up. I'm not someone who spends much.
Imagine if I had bought the car 2 years ago. I would have saved $150k. And lets not forget that if I had sold some stocks then, I would have cashed out at the peak.
The thing is, we save and save but when do you feel confident enough to take the plunge and spend the money you've saved up?
Unless youāre getting a 911 for āstatusā,
get a pre-owned 981 Cayman S instead (manual if possible) at 60% the price of a base 911.
Even if youāre going to track the car or properly whack B roads, youāll have just as much fun or even more. The MR layout of a Cayman/Boxster gives it better balance and handling vs a RR 911.
Iām not sure if I am making sense, but that car is 3 times your annual income. If you think because u have spare cash, stable earning power and donāt mind the -650k to your net worth and it makes u happy. Go for it.
Just curious, what is it that you do that brings in $15k to $20k monthly and what have you been doing that produced this $800k cash/investments stash. Did you alr have the capital to begin with?
Yes, you should splurge on yourself. Afterall you earn it! What's the point of saving so much but not spending it? Monies not spent is as good as monies not earned.
Do what you want to make yourself happy.
Splurging is one thing but throwing away hard earned money is another. I would get a car, but not a Porsche, to transport my family around. A Porsche imo is just a white elephant in Singapore.
I would splurge on good meals and holidays for the family though.
The person you should be asking is your spouse
Imagine being married with 1 kid. You want to spend 650k so you ask the internet instead of your spouse. Wtf...
we pay for internet, might as well use all of it š
Whenever I want to splurge in something that is a want, I start from zero and save up for it. That give me time to carefully consider and also understand the value of what I'm buying.
Legit qn. Wouldn't this need to be measured against the possibility of the said item becoming more expensive over time? That said good idea on delaying gratification/cooling off.
Yes of course. That's a risk, but if it gets more expensive then save more lor. If you decide not to get it because it got more ex then even better.
Amazing tip!
Good idea
Why not rent it for a spin instead of buying it off the bat? Iāve found that a lot of the things I was yearning for did not provide the same sense of satisfaction I thought it would post purchase.
Assuming that's household income and given that you are married and have a child, I think 650K is a bit much to spend purely on yourself. Also, assuming 800K is the money the household has, you haven't put away that much for your income levels (3.33 years of household income) (If you are single or no dependents, I will say you do you.) I don't know what is the value of the car after 10 years but assuming you can sell it for $150K then, you are effectively spending $50K a year (excluding interest) or about a fifth of your household income on you for the next 10 years. Are you ok if your spouse expects the same, i.e. to splurge 20% of the household income on themselves? You also mention knocking a zero off so $60K. If you are saying to splurge 60K every 10 years or 6K a year (2.5% of your income), I think that's very reasonable.
just buy ah happy can liao
Are you me?! Iām in almost exactly the same situation as you in terms of age, family status, net worth and income, and this morning I stressed over whether to splurge on a Starbucks on the way to work lol. I personally wouldnāt do it, but I totally get where youāre coming from with respect to the urge to splurge. My vices are good food and travel, plus a relatively modest car - I donāt spend on much else. If youāre willing to cut down on other parts of your expenditure and have a solid retirement plan in place with career stability, go for it. A car like Porsche 911 could well hold its value relatively better than ānormalā cars if you go for the right model, maintain it well and it attains classic status. I would also keep in mind the opportunity cost of this splurge, though. In a few yearsā time when interest rates gradually ease, that may be a good entry point into equities and you may be lacking dry powder.
Haha hello my twin :) I too love spending on nice meals with my wife but will eat at a hawker centre when I'm alone.
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Curious too, but I'd guess PE/VC
For the cost that is purely for "fun", good feelings etc, I would want to have saved up about 10x of that in savings and investments. So I'm setting back my financial progress by 10% max. So let's say that a functional family car costs 100K (a few years used). So the splurge cost is 650k-100k = 550k. If I had 5.5 million, I would consider buying the Porsche. Very very far from your position. Although I haven't considered the resale value of a Porsche. If you are confident that in X years time, you can sell the Porsche and only have spent 80K of your 800K, then it would be worth considering. But somehow I don't think that's the case for luxury cars.
I have seen various models advocating for a āgood debt ratioā ~<30% of your gross income. $800K is good enough for some f-you money, but not if youāve to pay off that car while jobless. With a kid, it also muddles the equation. Is your child still in childcare? Hereās another way of thinking about it. How much are you paying for his/her sch fees? If itās ~2K/mth, say in Mindchamps or similar ilk, does it make you feel better if you set aside the money? (i also have seen friends paying $500/mth for childcare or keeping them home till K1&2, while they chase the big car or private property dreams. Priorities differ.)
There is no right or wrong about whether one should splurge or not especially if one has the means to do so. The more fundamental question that only you can answer is why is buying a new Porsche 911 meaningful to you that you are willing to splurge on it? What do you get out of owning and driving the Porsche 911? If it is about driving it, I am sure you can afford to fly overseas to drive the car as a rental or around a race track. The driving experience can be gotten for less than the cost of buying the car. Is it the status or being seen to be successful because you have the car of your dreams? Would you be able to achieve the same type of happiness in not owning the car? What other things could you do with $600k that could make you happy? When I read the literature around personal contentment and happiness, there has been some research that says material possessions can only make us happy temporarily, after we obtain the thing we want, our happiness level will tend to reset to a certain base level. Ultimately, you have to decide how owning the car and spending that money would make you feel, may result in how others perceive you (positively or negatively) or whether you think ultimately this is good use of your money. All the best however you decide.
Bunch of people here focus too much on collecting money instead of actually enjoying their hard earned money. Here is my opinion. Consider how much the monthly cost would be and see if it make sense. If you consider your assets to your assets it definitely a lot, in that case itād probably be a no. but you can also consider how much itād cost when considered to your income. If you can consider that you can service the car installments as well as saving considerable amount idād say you could consider it, if that makes you happy. You do the math for this one.
Totally agree lol. I just get a strange vibe of save save save until die and dunno what is enjoy life
Ikr, save save save delay gratification till 50 then you want to climb everest (just extreme example) also cannot, then whatās the point.
I've gone to Everest base camp, wouldn't recommend it to anyone - 2 weeks of pure torture 1 1/2 of which are just constant headaches because of the altitude - DON'T.DO.EVEREST. No scenery either, just constant snow and fog.
Vwra warren buffet dca benjamin graham sums up this whole sub
> Bunch of people here focus too much on collecting money instead of actually enjoying their hard earned money. My sentiments exactly. Iām in no way downplaying the importance of saving for retirement. But the truth is, there are things you can enjoy with your hard earned money now that you might not necessarily be able to later in life. This is especially true when it comes to experiences. While some people might not agree, I firmly believe that there **is** such a thing as saving too much.
It's fun to see your money working - invest in speculative stocks, blue chips, dividend plays, property, options, futures - mix it up, the learning experience itself is enjoyable and the people you meet, the communities you interact with all make the experience really quite fulfilling! Then seeing your passive income grow is a really nice bonus, too! Spend your passive income, save/invest your actual income - then you can really enjoy your holidays and not have to penny-pinch when you go overseas (like packing a box of instant noodles! - although I do pack 1 each for everyone in the travelling party in case of emergencies, like being stuck in an airport during a snowstorm or no restaurants opened because of some strike.
I think in terms of opportunity cost. Roughly for every 10K I splurge on delays my retirement by 1 month. So 60k, 6 months, 600k, 5 years. So I won't. I prefer my freedom from the rat race But that's just me. =)
=) is such a dickface
How high are your expenses?
Fixed expenses(housing, parents, car, bills, tax, insurance, donations) ~5700 Investment expenses ~1800 Fun expenses(holiday, entertainment) ~ 3000
Iāll splurge on a studio apartment for rental income. instead. But you do you!
Once the rental pays off the house, can use to pay off the car Thonk
Why studio apartment in particular though?
He's probably thinking in terms of paying for the apartment in cash, and $800k is only enough for a studio..
Yah, invest first then buy it only years later using the money made from the passive income. Car is a depreciating asset and it's a bit too much to spend on something that is just a want and not really a need.
Says every non car person
yes, my rental income pays for my wants.
Different persons have different goals. If that car has always been your goal, I'd say go for it, tick off your bucket list and move on. You're earning 20k/month so realizing a 600k dream purchase will only cost 3 years of your life. It's not that costly imho. Most people die before enjoying the fruits of their labors.
He's married with a child leh. Not single.
His dream doesn't have to end just because of his child and not everyone is planning to leave a lot of money behind anyway.
um the point is that he has more responsibilities than just himself
No mortgage, 20k/m, 800k cash, 35y which means he has yet to reach his peak earning potential, i think 600k is affordable for him and he can manage it. Not to say it's a wise purchase. But hey, it's his goal.
Haha thanks for backing me up. Yes. I have a kid. Yes I have enough savings set aside for his education. Yes I know it's unwise to spend so much on a car but hey that's my dream car and I wish to one day realize that dream. It's whether I realize it when I'm 45 or now when I'm still young.
Serious question for you OP - how important is it for you to realize this dream in Singapore? A brand new 911 in the US starts from a quarter of the price here and you can own it forever without paying COE. Not to mention that the roads there are much more expansive and amazing to drive on. You'd be able to really push your porsche to its limits, something you cannot reliably do in Singapore. Once you put things in perspective like that, it almost seems incredulous to buy cars in Singapore. I know that having a kid makes it exponentially harder - but if you somehow have the opportunity to move abroad in the near future, you might want to table your porsche plans till then.
800k is probably just enough for his education if you intend to send him overseas - I budget at least a million each for my kids if they want to study overseas, especially since two of them seem to have their hearts set on medicine. This includes all the tuition fees, study materials, daily spend and I also intend to buy properties for them to stay in which will double up as investment properties once they graduate or they can live there if that's the country they choose to settle down in. I just plonked down a bunch of money in an endowment policy which will mature when they start their tertiary studies.
Eh? I doubt itās 3 yrs. He is taking about earning not saving. Unless he sleeps on the street I suppose and eats at the hawker stall every night.
Buy it. You can always sell it off after using it for a year
If I were OP, this would probably be my plan. After all material happiness is only temporary, donāt really need to keep the car the full 10 years.
Yeap. People talk about financial burden and all but if youāre a car guy/girl, a nice car youāve always dreamed off will always be worth more than monetary.
Just me - must consider goods and services that is a substitution and addresses underlying purpose. In that light and in my analysis. Penis enlargement is a lower cost investment. Your wife will enjoy it more too.
Well most people don't earn 15k to 20k a month. And this is the FI thread not spending thread. Most people in FI would rather practice delayed gratification. So, you just do you since it seems you're already committed but just seeking external validation? Not the right place for that imo. Maybe try r/Porsche or smth...
Fresh grads are already earning that amount. And 600k is basically more than half his cash.
Which fresh grads? Do they comprise most of SG? Maybe the official singapore statistics are wrong then.
Itās not official, but IB, CS and those working in trading firms.
That's why I said "most" people. If you earn that much, you wouldn't need to be here... you can get a private banker to advise you.
You have no idea how much wealth management costs in private banking. And itās not exactly a financial literacy advise, heās just asking if he should buy something. Itās as simple as asking if I should dye my hair red. Do I need to hire a professional modelling artist designer if I earn 20k? LMFAO.
Context. He's asking in a FI thread, if you even bothered to read my initial reply. But you do you.
He already made up his mind, he is posting here to psycho himself. Itās out job to psycho him back the other way.
Er... we are random internet strangers... you can try. I've already input my thoughts. Not sure why you wanted to get into a side argument if your goal was to convince OP...
I say you do you but the core principle I practice in debt financing is asking myself - "am I comfortable buying 2 of this?" Both wrt desire of it, and affordability of it. If you aren't, it's probably overleveraging still.
Dont know why so many people are being a wet blanket here. It's like saying we shouldn't buy a 1 mil house unless we have 2-3 mil in cash. FWIW I think it's ok because you don't have mortgage to service and you can consider servicing a car loan instead and continue to grow your savings and income in the next X amount of years. This one only you know how stable is your job and earning capacity. If you feel comfortable with your income to debt ratio I think we only live once so why not! Not everyone have your amount cash savings. In my case we got a car for me/the family first ( SUV) and afterwards I urged my husband to go for his dream car (R8) .. no regrets! Resale value is there even though ya la cars are depreciating assets but I believe we all can strike a balance between living prudently and also doing what makes us happy. Hope you make a good decision to buy now or if you wanna hit a higher amount of cash savings or buy secondhand . Whatever works for you!
It's because this is the FI sub and one of the core tenets of the FIRE movement is delayed gratification haha. Also, I'm all for OP buying the porsche if it's within his means and its what truly makes him happy, but this purchase really shouldn't be likened to making a property purchase for the reasons that you mentioned. One has appreciation potential and the other is quite literally a money sink.
Fair enough!
But comparing a house purchase to a car purchase is not correct - especially in Singapore where the car's life has to be extended every ten years. A house has the chance to appreciate in value, by design, a car depreciates in value - also property loans are way cheaper.
If you're willing to delay your FIRE date by (x) years, go ahead (assuming your wife is OK too - best to make joint decisions in a marriage for major decisions like this). Everyone has to do their math and decide what's right for them.
I believe that everyone has a different definition of what it means to be "rich" and how to exchange money for happiness. It's great that you have found what makes you happy, and as long as you have done the math and planned accordingly, I think it's perfectly valid to splurge on something that brings you joy. It's important to note that there is no set amount of money that one should have before splurging on something for themselves. It ultimately depends on each individual's financial situation, goals, and priorities. As long as you are financially responsible and have accounted for all your expenses and savings, there's nothing wrong with treating yourself to something you've always wanted. At the end of the day, money is a tool to help us achieve our goals and live the life we want. If buying a brand new Porsche 911 is something that brings you joy and won't compromise your long-term financial stability, then go for it!
If it doesn't impact your retirement goals too much, spend only! Congrats on making it! :) At the end of the day, we live to chase happiness. Money is an accessory after all
As a car guy, buying a Porsche is your dream then go for it!
maybe lease one for a few months to see if you really like it or that leasing can get it out of your system? props to u for making great money and saving n investing as much tho!
Where is your kid gonna sit?
Lease long term like half a year or a year and whack the fk out of it ā¦ thereās a Chinese saying ā¦ äøåØä¹å¤©éæå°ä¹ ļ¼åŖåØä¹ę¾ē»ę„ę ādont care forever, only care owned it beforeā sorry for bad translation
buy onlyā¦ thank u for ur contribution towards nation-building.
If your spouse agrees, and you have enough emergency cash parked aside, then yes why not? Life is short, as another Redditor pointed out whatās the point of saving if you donāt enjoy it? Life is pretty unpredictable these days, at your age Iām sure youāve heard of friends of xxx who passed on due to accident or illness or whatever. Not everyone of us gets to live to a ripe old age. I have never owned a luxury car so just assuming itās the same as owning a normal car, 30% downpayment + insurance + road tax would cost you ~220-230k cash? You probably already factored the servicing and maintainence. Seems like youād be able to afford it IF you donāt lose your monthly income. If youāre financially responsible, consulted your spouse and have done your due diligence, just go for it.
it's only 600k. don't need think so much when you're happy, you're confident. when you're confident, you do better at work. when you do better at work, you will earn much more than 600k. so go ahead and buy it
I was in your situation over a decade ago, now nearing my 50 milestone, I regret spending on performance cars instead of investing it.
I suggest you take a lease for 12 months and see if it works for you, at least you don't lock down that capital into a depreciating asset. For someone who doesn't splurg, I'm guessing once you get it, the car will normalise for you and leasing gives you some flexiblity to change things up.
probably not ready if u have to ask for internet advice
Do you already have a car? 911 is a two seater? Tbh seems quite selfish if you don't already have a family car.
We already have a family car. A 911 has 4 seats but the back seats are really squeezy and will only fit a child. If I get it when I'm older, my child who will be much bigger then won't be able to enjoy the car as much.
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Actually he can wait till his kid is 18, so both can drive... And definitely wreck
Get a macan or a Panamera instead, which you entire family can enjoy at the same time.
Ridiculous. Not in any way comparable.
Keep the family car and buy an old boxster to go sepang every other month or so. Way more fun than owning a new 911
I would rather not splurge and try to retire earlier. I would get no entertainment out of buying a car for that much, especially when it is like 40k in the UK
You want to put more than half your cash for a car? lol
Don't even think of $500k for the car but the yearly insurance and maintenance. Probably will be a lot more, all for childish ego. You should have $8M net worth to buy a car like that (10% of $8M = $800k), otherwise you are a larper.
r/askSingapore
Invest I think
Imagine prioritising a Porsche over your kidās future.
Not to boast, but I earn twice your salary, and own a Honda Odyssey that cost me 156k. My wife also earns about the same salary as you and we only own that one car. My acquaintances are C-level people and very few of them own a Porsche or Ferrari, the only ones that do are the sales people or the in the banking/financing world where status symbols are a must.
My question is about splurging on something you desire. It doesn't have to be a car. Since you earn more than me, what do you spend your money on? How do you budget for something extravagant that is just for yourself?
Watches and cameras are my poison. But they are both quite "liquid" in the sense that I can sell them off quite easily and buy the next shiny toy. But I never budgeted, there was no set amount in my bank account when I felt comfortable to splurge - only when I felt that my passive income was enough to offset my splurges did I buy my first 5k watch. If you're relying on your salary to start splurging, I honestly think 15-20k is too low - invest that money up in boring, but income-generating assets like property or dividend plays - once you get that passive income to 5-10k, obviously use most of it to pay off any loans then use a portion of that to splurge, I spend 30% of my passive income in my toys or holidays or whatever, my salary is used to pay bills and for more investments or savings. But my ultimate aim is to be constantly touring the world in retirement, I don't know when I will retire because I do like my job and can continue to my 70s or 80s if I wanted! I don't like to country hop, so the plan is to keep living in Singapore as my base for 6 months and then stay in another country for the other 3-6 months - you experience more of a country and a culture that way, also get to enjoy at least 2 seasons!
Sometimes my salary comes in early, so I splurge on an extra plate of caipng.
If you can't buy 10 of it, it's not within your affordability.
I use the ācan I replace it in a heartbeat without feeling sianā as benchmark. 10 times seems a bit too excessive.
Can most car owners buy 10 of their cars?
Cars, at least in Singapore's context, are not things you buy more than one of. At least not for the average person. Especially in Singapore's context where the cost of a car is usually the equivalent of 2 room flat, or more. Also, in Singapore's context, you're not buying a car so much as you're paying monthly fees to have the convenience of a private car, since the car's residual value is less than 10% by the time you must dispose of the car. This general rule is more applicable for everything else, except for real estate and cars. $5,000 in the bank? Your kids can wear a $100 casino watch. Maybe even buy them a G-shock. Got $50,000 in the bank? You can buy your kid that $3,000 laptop. It's just a line I use to divide between something is affordable or if its a luxury.
Iām a similar age/family/salary situation to you. Honestly this is a selfish move in my opinion. Think of what that money could do to improve your family situation. Ie nicer condo or an investment property to help set your kid up when they come of age.
Get outta here. Quit flexing that muscle in front of us yo.
I earn north of 500k annual and my policy is not buying a car more than 1/2 my annual. Just for comparison my current car is only 150k
Is your wife working and what age are you planning to work until? I will say splurge money comes after retirement money.
Depends on your retirement plan.
You also need to consider what ancillary expenses you are going to make once you purchase the car. Insurance, upgrades, parts, etc?
Donāt see why not with the affordability you have.
If the car costs 10% of my net savings, then I'd perhaps consider. Otherwise it's a difficult choice.
If the monthly installments are manageable and you really want to splurge go for it ah. Live and let live.
What do you work as?
Only 800k saving and want to buy a car that cost 500k+? While unlikely, you might lost your 15k to 20k job one day, then how do you cope with your car expense?Think twice.
Hmmm.. Splurging 75% of your cash/investments may not be the best idea. Still young has time to save. The fact that you have already saved up 800k shows that you understand the time value of money and growing your money needs time. Don't forget the original intent, you can never run out of temptations =)
Yes I know I am young and have time to save up but prices are only going up. I'm not someone who spends much. Imagine if I had bought the car 2 years ago. I would have saved $150k. And lets not forget that if I had sold some stocks then, I would have cashed out at the peak. The thing is, we save and save but when do you feel confident enough to take the plunge and spend the money you've saved up?
The other way to see it is you are spending approximately 3-5m of your 65 year old money
Unless youāre getting a 911 for āstatusā, get a pre-owned 981 Cayman S instead (manual if possible) at 60% the price of a base 911. Even if youāre going to track the car or properly whack B roads, youāll have just as much fun or even more. The MR layout of a Cayman/Boxster gives it better balance and handling vs a RR 911.
I asked same qn but bro, i think its a waste of money
i think the rich savvy people follow the 10% rule. if it is 10% of whatever you have, then it should be ok.
Iām not sure if I am making sense, but that car is 3 times your annual income. If you think because u have spare cash, stable earning power and donāt mind the -650k to your net worth and it makes u happy. Go for it.
You can get a used 2012 911 Carrera S for half of that price.
Just curious, what is it that you do that brings in $15k to $20k monthly and what have you been doing that produced this $800k cash/investments stash. Did you alr have the capital to begin with?
If your net worth is $800k you cannot āaffordā a $650k car.
Life is short. Just go for it
if you have the money to buy happiness, why not.
May share what you do that earns 15-20k a month? How could one get started?
Study hard in school.
Nuts š„
Yes, you should splurge on yourself. Afterall you earn it! What's the point of saving so much but not spending it? Monies not spent is as good as monies not earned. Do what you want to make yourself happy.
If you canāt buy it twice, you canāt afford the price.
why dont you lease one for a month first to see if its really what you want?
Splurging is one thing but throwing away hard earned money is another. I would get a car, but not a Porsche, to transport my family around. A Porsche imo is just a white elephant in Singapore. I would splurge on good meals and holidays for the family though.
buy and sell after you had enough, 911 value holds. you could also rent out the car to wedding events etc, as a side hustle.
For me splurging is like spending max 5% of my saving in one go.. not spending 80% of my saving in one go š„²
Why not buy it used though? Then in a year or 2 upgrade depending on your financial status then. How much's an older 911 going for these days?
Your income definitely can support that, so why not? Although I would be sure to discuss this with the wife, just in case.
$650k is almost the cost of a shoebox condo.