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      12-13-2019, 11:50 AM   #692
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medphysdave's Avatar

Drives: M2 CS | 85 of 592
Join Date: Apr 2015
Location: Charlotte, NC

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Originally Posted by Conissah View Post
I have no other expenses than my rent, which I split with someone. Put myself through school and paid cash for it all, so the M2 was my 'graduation' gift to myself. I for damn sure didn't (and don't) have $60,000 in cash to blow on a car, but I got a deal, and my financed amount is around 20% of my net monthly income, so I figured it was worth it. I don't see a problem with financing it.
I understand the depreciating asset conundrum. If we were all wise and lacked emotion we would invest all of our income to build wealth. Build wealth for what??? So my kids can live a lavish debt free lifestyle after my death? So I can start spending my money in the last few years of good health? What if your health declines early, go through divorce, etc. You have to live a little along the way. I've been through a life hardship that has given me much needed perspective in finding balance. My advice is to ensure you are saving adequately, meeting necessities, and then feel free to spend the rest on whatever you find fun. Some poeples fun is making more money, others golf, hunting, cars, etc. Hobbies are expensive.

An example of my mindset. I spend waaayyyy less on housing than I can "afford". By doing this I'm saving a lot on interest payments. I choose to drive a car that brings enjoyment. Mortgage interest is pissing away money, and so is buying a car beyond basic transportation. Minimize loss in one pool so I can lose it in another, but continue to increase savings. Or try to stay expense neutral so any increase in earnings goes into savings. Example my car payment is going to increase by $500/mo, but I'm going to pay off my student loans and decrease my gas/insurance/tax expenses offsetting the $500/mo. My car payment is now $1500/mo, but I'm still spending the same amount each month that I'm already comfortable with.

Financing has been well worth it for a number of years with the market returns that we've had. 20%+ plus returns. Not worth paying off a 70k car at <4% interest rate.

By no means am I saying this is the right way. It's just my way and I'm happy with the balance.
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