some salary questions

Better to have loved and lost than never have loved at all.

I've been to the brink with children and wife and have manged to avoid the whole divorce thing that my generation seems to be hung up on (so far, cross fingers).

I must say, even having been through some really tough times, and even if I would have ended up in divorce, I still am glad to have, or have had in that case, a wife and children. My children are the future, and my wife deserves her fair share if we split, even if I don't feel that way at the time

Maybe I just got lucky, but it seems the 50% failure rate in marriage these days is just out-of-control.

We've gotten way off topic here though!

 

What country are you from, anyway? It might help to fill out your profile. I suspect you aren't in the US. Every country is slightly different. I know where I am (Southern CA), buying a house isn't like it is most other places. I had a goal of buying one by the time I was 25, but unfortunately I set that goal around 2001 and houses here cost multiple times what they did back then, which was totally out of my control.

Having said that though, I can tell you that keeping that dream alive is important. Know that it might not happen overnight, but also know that it will happen eventually. Everyone needs something to focus on and work for.

 

I think you should consider the possibility that you may NEVER own one of these cars. They are expensive to buy, insure and maintain - and they are when you get down to it - frivolous.

Thats why you don't see them everyday.

I am 44, a reasonably successful trader, business owner, and part time Professor and have never bought a 100K car - I don't even own a Ferrari.
You seem like a decent kid and I just said this on another thread a few days ago - find something you like to do in life because you will spend most of your waking life doing it.

That may mean you will never get paid enough to own a Ferrari but you will be much happier overall.

The old guard on this site tend to be an affluent bunch and they are all giving you the same advice - Pay off your debt, buy real estate and save your money.
You can always buy an old Z car, Porsche or MR2 and play with that.

 

Hmm...

http://finance.yahoo.com/expert/article/richricher/6720

http://finance.yahoo.com/expert/article/richricher/23654

Not saying all 401K's are in mutual funds, but I think most are and it may be time to take a hard look at that.

 

Every person and personality is different, but that mindset would never work for me. I have found that life gives me exactly what I expect from it, so I set the bar pretty high. I've never entertained the option of "never" in any facet of my life. I truly believe that if I set my mind on any goal, I have the ability to achieve success as long as I keep my priorities in line. I like to think that I have a lot of life left, but I've been right thus far.

 

The time value of money and where you invest your money are two entirely different topics.

 

Since you mentioned salary I agree with Frank here.




My advice.

1. Live WELL below your means.
2. Invest your money in appreciating assets or ones that cash flow(if you can, find an asset that does both).
3. If you're working for someone else, double up your work on the side or at home and try to have an ancillary income that meets or exceeds your day job.
4. Learn the difference between income/salary and wealth. You'll find most of the wealthy people on this board have not necessarily had the highest paying jobs. Trading your time for money is a poor exchange, even if you're a surgeon. Focus instead on having others trade their time for your money and reap the benefits of their work.
5. You can have almost anything you want in life, but it's unlikely you'll have everything you want. Set your goals, refer to them often, work hard, practice discipline, reap the rewards.

Good luck you!

 

It all depends on how crazy you are about owning a Ferrari. I've had the hats / shirts / posters, etc. as long as I can remember and always said my stated 'dream' was to have a horsey in my garage. But when I graduated higher up on my priority list was getting on solid ground first. So like many here I bought the house, did the retirement investment, got married, etc. Picked up some other fun cars...then at 35 yrs. looked at the finances and decided this was a good time to jump in. And to own a Ferrari 35 is plenty young; sure I'd have loved one at 25, but 10 yrs. goes by pretty fast.

 

Good list there.

Speaking of #1....

Can you imagine how many people live beyond their means using credit of various sorts... I bet 80%.

Then imagine the ones that live about even to income, the classic paycheck-to-paycheck, or is it called hand-to-mouth? I bet ~19%

That leaves 1% that actually lives below their means, and of that I bet only 1/10 live well below their means.

 

This is worth reading again!

 

I hope you remember this once you graduate and start making money. I am constantly amazed at the number of people who "know better" but set out and make stupid financial decisions once they start pulling down paychecks.

 

Great book that deals with this topic. It's called Rich Dad Poor Dad. I think it should be required reading.

 

You are exactly right! Sound advice for any person, no matter what stage of life he or she is currently in. It's never too late!

 

I was not recommending mutual funds, but rather just trying to illustrate the time value of money. I am in 100% agreement with those articles though... If you want further reading along those lines, check out Malkiel's A Random Walk Down Wall Street.

 

I agree. Just because a Ferrari isn't the wisest thing to buy doesn't mean you shouldn't. Obviously, if you care enough to admire them and learn about them, you'll get a lot of satisfaction by owning and driving one. Life isn't all about investments and spreadsheets. Truth is, I've met a lot of people and expanded my personal circle quite bit by owning a Ferrari and joining in some of the club events. It takes a special kind of person to really appreciate what a Ferrari's all about, and if you're one of them then make a plan and make it happen. It's no different than dropping five figures on a European ski vacation.

If you're really smitten by Ferraris, like I was, and like the OP may be, there's no reason not to own one eventually. I don't know that I'll ever own a California Spyder or a Lusso, but certainly the 355-360 run are going be very affordable cars while this guy's age 30-40, and will have bottomed out in terms of depreciation.

I agree with all of the 'no debt' and 'buy real estate' advice. I disagree that he should, in the long term, settle on an old Porsche or MR2. The whole time I owned my Porsche 993, I was justifying to myself why it was a better car than a Ferrari. And of course I never really 'bonded' with it, then sold it and used the money to buy a 328. In fact, if I had back the money I wasted on sales tax and depreciation on the Porsche, my Mercedes and my first Jeep GC, I could probably buy a couple of spare engines for the 328.

As I said above, there are a lot of things in life that are frivolous financially but worthwhile spiritually. I suppose we could all live in Indiana (no offense - I have family there...), drive Camrys (driven by people who don't appreciate driving), and wear $10 Casio rubber watches. There's a continuum between being frivolous with your money and frivolous with your time on earth. Just as compulsive savers regard me as a fool for having a Ferrari instead of an Accord, I wonder how much enjoyment they're denying themselves for the sake of a bigger bank account.

I think he should not buy into the notion that he may never own a Ferrari. By following a lot of the good advice here - get a roof over your head, do the 401k, don't buy new cars, save money, etc. - he can chart a responsible course financially and put something fast and Italian in the garage not too late in life (but not right now). If he didn't, he'd be cheating himself out of one of life's pleasures.

 

Salary needs a location because the standard of living for $50K/year in Oregon is very different than California Regardless, there are other priorities that need to be addressed and I'm sure there have been many good suggestions above, your own house being one of them. Jobs are rarely guaranteed so you need to have a good savings and comfortable wage usage (not paycheck-to-paycheck living). These cars are toys more than anything else.

 

Original poster should spend 15 minutes and read this entire thread:

Monthly Payments Questions
http://www.ferrarichat.com/forum/showthread.php?t=85094


--Mike

 

My standards are pretty high too. Maybe your misinterpreting my point. It is more important in my book to do something you like then the absolute money involved. I know a few people who are well off, have toys and are miserable - and stuck.

I have also seen many young guys come in, have a good year and blow it on a car - only to discover the market changed and what they did doesn't work anymore. I'm just saying to properly categorize your life. Make sure you own something and have a retirement plan then go from there.

 

The original poster asked how much the cars really cost.

Probably $20K to $30K/year all in costs (upkeep, depreciation, insurance, etc.) but it totally depends on car.

I figure my Diablo costs about $10/mile, the Ford GT about half that.

So, every time I drive the GT, I'm saving money

 

great post!

 

Now I believe that I understand your post. I couldn't agree with you more that prioritizing life is essential.

 

YES! exactly what i wanted to say.