Quote:
Originally Posted by Goat Rodeo
20 313,929.42
30 622,294.95
40 1,124,589.91
Certainly, if $700 month is all you can save, then you should not be driving a M3.
However, let's say you already invest $75,000 per annum every year for the same durations and return:
20 2,802,941.21
30 5,556,204.92
40 10,040,981.38
What does that additional $8400/yr do?
20 3,116,870.63
30 6,178,499.87
40 11,165,571.29
Personally I would be quite happy to have 5.5m rather than 6.1m and have NOT driven a shitbox for 30 years of my life. Furthermore, five minutes on YouTube watching IIHS tests will convince you of the need for a newer, modern car for daily driving. The average nice car is $300-$400/mo so the actual savings of the economy car are far lower than above. Unless you're OK with your wife and kids driving in a 90s Corolla..
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Yeah I agree completely. If you're otherwise saving $75k/year, then yes, the difference between 5.5 and 6.1 is negligible.
But I should mention a lot of people here seem to think one can afford a $90K M3 on much, much less, and I'd be genuinely blown away if I found out that the typical M3 owner is in line for amassing a $5M+ liquid net worth in his lifetime.
For reference, today only 0.9% of U.S. households have a liquid net worth (not including primary residence) of $1M+ (apologies for the European posters here, but I don't have HNWI stats for europe on hand).
Edit: I found a quick reference chart showing the percentage for other countries -
Looks like $1M+ (USD) puts you into the top 0.7% in the UK.
And strictly speaking, this is just $1M in investable assets (not net worth) but I'm sure the numbers are pretty close. If anything, the only debt I would assume is mortgage debt on a primary residence or something, but IIRC most people in this class have already paid off their primary mortgage.
But yeah again I agree completely with you if those are the numbers are you are considering. $8400/year extra on top of $75k/year won't affect your quality of living much down the road, and someone like that can clearly and comfortably afford an M3 in my eyes. I'm just not sure if that's the norm (it might be, but I'm not sure).