As I had several backlashes from my post that I’ve posted few months back, I thought it would be good idea to set everything clear and open a new discussion.
For all who didn’t see the discussion, please see link below.
How much do you think should one at least earn to spend $1000-$1500/mo on a car lease?
This is assuming that one is:
-In mid 20s
-No debt
-Write Off Available
-Money Saved Up- about $100k
-Nets about $8000-$10000/mo after tax & rent.
What’s the point of this thread? To “show-off?”
Why not ask your CPA instead of random strangers on the internet.
No more than $300.
I’d say 10% of your net (not gross) income for the cost of the car, insurance, gas, and any other expenses is a good guideline for most people.
But if you save more money and waste less on a cool car you can invest your money and retire earlier and own more years of your own life.
Obviously you’ve acquired some wealth, but the secret to wealth retention and further acquisition is to maintain the frugality that got you there in the first place - not ask what the upper echelon of one’s payment should/could be with a certain income.
Just be sure you can justify whatever lease you do get
Just drive your 12 year old corolla until it reaches 1 million miles…save all the money and die a millionaire…NAH!!!
There is no hard and fast rule on what’s best for every body…happiness is not defined by it…I spend 5% of my income in cars and 30% on a home…am I happy? No…unless I get to lease that X5 for less than 600 per month…lolz.
This is post is just as stupid as the first one and you’re going to get the exact same response. You’re essentially asking how much money do I need to make to afford a car I think will get me laid. If you’re worried that not having a 1k+ lease will lower your chances with women, they most likely aren’t interested in you anyway. Go take the 10k you’re supposedly making and pay someone to teach you a magic trick, buy a book, take a trip…literally anything that will make you not THAT guy that needs to flex to feel validated.
I’m going to leave this thread be because I do think there is a valid discussion to be bad here about how much is financially sound to spend on a car.
However, if it devolves into personal attacks I’m going to shut it down.
I’ll chime in. We’re DINK (double income no kids) HH w 6 figure income and I personally feel uncomfortable with anything over $700 on any single car payment. (I was toeing the line when I bought my Cadi ELR a couple years back though!)
We tend to have 2-3 (and recently 4) cars depending what I’ve hacked or am on the hunt for. I’m also firmly against anything that costs over $200/mo to insure (possible even with a perfect driving record - lawyers make sure it stays that way)
There is a big difference between cash flow and wealth.
7 figures is the new 6 figures brah
This query is better phrased in term of how much percent of net income should be spent on cars.
Even then, it depends on the person. Warren Buffetf is a billionaire who’s known to drive an old Camry and still living in his old house. This maybe an urban legend but most millionaires are like this.
There isn’t a number. It’s all about the utility of money to you. Fill your retirement account to full tax advantaged amount and have a rainy day fund then do what makes you happy. Would you rather retire early/save money for potential future children etc…or drive a Lamborghini.
I know people who are car nuts. They don’t go out to eat and live cheaply so they can afford a car to race on the weekend. That makes them happy. My parents drive cheap 10 year old cars so they can travel around the world in relative luxury cause that is what they value.
Only other points are good economic times have never lasted forever. You aren’t much younger than me but enough that you probably don’t remember 2008 crash well. Not sure how you are making your money but unless it’s selling drugs you have to plan for an economic downturn at some point.
Also be careful with tax write-offs. Plenty of people here have valid ones but many do not.
You should earn between $400k - 500k to afford a $1500 monthly lease considering the insurance would be between $250 - 300/ month and the gas would add another $200 - 300 if you use it as a daily driver.
Having said that, i would be rich saving all that money than pretend rich.
I wouldn’t say this is a BS post at all but your asking a knowledgeable group but not necessarily the right group. We all here regardless of income or investments to enjoy the hunt of driving the nicest car for the lowest payment. In many cases from chatting with people on here most could afford to own the car but it’s not about that. Your in a excellent position financially but it’s only your decision to make on what you want to spend…personally it’s not what you spend but what you want to drive and how little you get it for. Max your investments as others have stated and congrats on hacking life, but get that 100k out earning for you as opposed to sitting. Soon family and more expenses come along, but enjoy something fun to drive.
On a serious note, what makes you think the feedback in this new thread will be any different than the last? The fact that you no longer live in your parents house?
i dont know why everyone is so tough on the guy, hes young, raking in the money and just asking for some advice from the people here.
OP, take care of all your financial obligations which it seems you are doing well.
why not spend on things that make you happy? mostly everyone has their own hobby or interests that they spend more than what’s “recommended” for their budget, noone here has the two same story in regards to budgeting, saving or spending - in the end you have to come up with that structure on your own
Then he should just do it, why ask strangers?
You saved $50-70k cash and got an apartment in just a few months? I think you have enough for a lease payment like that.
I don’t see retirement savings in the equation?