$100k per year, is it what it used to be?

Well, not F40's, but I'm sure in the Midwest you can swing a home and a 308 or GT4, Mondial, 400i, etc. on less than $100k.

 

My roommates and I all have individual leases. We pay $15/mo extra on top of our rent so that if one of us doesn't pay rent, they can't come after us. They can only go after the guy who didn't pay. Plus, you can rent a garage for $60/mo. The actual rental rate for each room is $380/mo. That's for a 12 month lease. We all decided on a 9 month lease since we weren't going to be there for summer so they increased it by 15% (so raises to $437) for 9 months. Add $15/mo individual lease and it comes to $452/mo. You shouldn't have to worry about vandalism. Some guy parks his brand new M5 outside and he hasn't had any problem. I always have my car under car cover in front of my place and no one has messed with it.

Take home 50K would probably be closer to 80K gross and not 100K. Don't know why you plan to pay that much in taxes.

Edit: I'm also not saying one should do this in order to buy a Ferrari. I was just showing these numbers to Mr. Payne that you could live on very little and save in order to buy a house for almost all cash in a short period of time. Buying a Ferrari while doing this will kind of ruin the plan of buying a house asap.

 

Truth there. I know many people who are doing exactly that.

 

Can swing, perhaps yes. but that may mean a pretty big compromise on housing. never said it can't be done, I just think when most are faced with the decision, most choose home first. once you have a home your happy with, then a ferrari. that can mean different things to different people. and may mean different things to same person at 25 vs 35 vs 45.

As for F40's I'm just a regular working stiff. went to state schools. no family money. same as most 308 / gt4 / mondial owners. just offering perspective from my experience. not saying I'm right...

 

I think you're right: it's smartest to get the home first. If I wasn't married though, man, I'd be that guy in a 500 sq ft apartment driving a 6.0 Diablo!!

As for the state schools, well, medicine and dental are the professions that are not as pedigree-oriented and AFAIK you can make as much out of Missouri as Stanford. I suppose unless you wanted to be a researcher, there's no *reason* to go private, unlike law or MBA programs.

 

Totally agree. I'd still like to have my kid wear a crimson sweatshirt though, regardless of what they want to do...

 

I'll tell you, £100k GBP really doesnt get you very far in London.

Not when your income tax is £40k and your rent is £15k plus etc etc

ahhh deppressing

 

I have had sevral millionaires, (you know the old boring guy in the corner of the room at all the shin-wags, that has on khakis that don't fit just right and he doesn't care guy) that have told me the two most important things to building wealth, real wealth, are these............


1.) NEVER use credit cards, if you can't pay cash you can't afford it.

2.) NEVER have a car payment, outside of a house, cars are the single largest purchase (most) people make. if you are spending that much money on something that on avg loses 60% of it value in the first 4 years it's insane, how many of you would invest in a stock that will would be garanteed to lose 60% over 4 years, sounds nuts right, but how many americans to just this when buying cars.

 

If you netted a hundred grand last year you don't qualify for a Roth. Max income is 95K single and 150K married. By the way I would fire my advisor if all he was putting me in was IRAs at your age with your relativly high income and relatively low mortgage I would be divirsifying my ass off...stocks, commodities, foreign money, mutual funds AND an IRA or 401K or both. Fire your advisor and get someone who knows what he/she is doing.

 

I like my grandad's old motto. Ain't gonna be no U-Haul behind my hearse!
From the people I know, large inheritance creates more problems than it fixes.

 

3 minutes? I hope that's the snooze button.

 

That is the most financially prudent answer, but not necessarily the right answer for everyone. In my personal life, there is a fine line that I try to walk between enjoying experiences (whether they be in nice cars, trips, etc) and making wise financial decisions. I'm 28 years old and make sure that my wife and I put a minimum of 15% of our pretax dollars into retirement accounts. We own a comfortable home that we are happy with, but I also allow myself to indulge in vehicles because that is something that I am passionate about. I know that I could put that money into retirement accounts, but that's not how I choose to allocate all of my money. I personally believe it's important for me to enjoy life all the way through, not just in the latter stages. This is just what works for me personally though. I'm not suggesting that this is the best plan for everyone.

 

last year was a big year for me (car purchases/home purchase). I kept it reasonable. I purchased my parents house in mass before any fcarz. i'm single no kids/pets.it depends on where you live. $500K doesn't get you that much up here in the north east anymore.