What % does your Ferrari make up of your Net Worth?

And perhaps shorten or eliminate certain waiting lists .

 

I wouldn't count my house or any of my cars as an asset. The house is paid for and that amount of money isn't doing anything. I still have to pay taxes, cut the grass and pay for any thing that breaks or needs to be changed. The house has increased in market value but so have all the other homes. For me to sell this house and buy another would be an expense.

 

What happened on 9/11/02? Date doesn't ring a bell.

RMX

 

my hero!

who cares.

 

HenryR,
For most people who will never have 6 figure (or above) incomes, living below your means is the surest path to wealth accumulation. In fact, even people with high incomes need to live below their means in order to accumulate anything. And the best way to do that is to keep debt low, including mortgage debt. For a true gauge of net worth, one should only add up income producing assets. Your residence, cars, and personal property are not among them, even if they actually appreciate. A 500k runup in home value is useless unless you sell it and move to rural Alabama for instance. A Ferrari is a toy and, as with any toy, an individual must reconcile how much of his income (if financed) or net worth (if paid cash) he/she is willing to give up.

Dave

 

What if the home is paid off and I take a reverse mortgage on it?

 

What % of my net worth? Gee...... I’ll run out and see how much gas is in the tank and get right back to ya.....

 

Neat thread. For me, I count anything that I could sell, including my house, boat, cars, and aluminum in the garbage can. I would raise the purchase % to maybe 10 % max, but I would include ALL of your cars, boats, toys in the %.

 

Adamr,
REverse mortgage is OK when you are about 85 and out of money. By then, the Ferrari will probably be gone anyway.

Dave

 

Exactly.
People here are saying that thier homes are not part of thier net worth. That doesn't make sence. You have paid for it, or are paying for it. The value that you ave paid off is yours. You own that. Thats part of your net worth. Regardless if you can sell it and take the cash or not.
if you have a house, and you sell it for 300k. You can keep that cash, and live in a appartment if you really wanted to. Just cause its not practical to do so doesnt mean that its not part of net worth...

 

Some basic financial analysis: net worth = your current assets less your current liabilities. So, for example, with regard to a house, the impact on your "net worth" is the FMV of the house less any outstanding principal amount of any mortgage, or other indebtedness, secured by the house.

For me personally, the ferrari % is less than 1% of net worth. You'll find me driving a fiat or an alfa if the relative % got higher than 1%.