BMW M3 Forum (E90 E92)

BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read


Go Back   M3Post - BMW M3 Forum > BIMMERPOST Universal Forums > Off-Topic Discussions Board
 
Post Reply
 
Thread Tools Search this Thread
      02-05-2012, 01:33 AM   #1
theaf1don
Private First Class
United_States
8
Rep
127
Posts

 
Drives: 325ci
Join Date: Feb 2007
Location: USA

iTrader: (0)

How are all these young guys affording M3s?

I graduated college last year and am an engineer at a big SV tech company. I'm making 100k base salary but still can't afford an M3. Yet at the same time I see so many high school and college kids driving M3s around. What gives?

After taxes and 401(k), its around $3,500 per month in CA. Then lets say rent is like $1,500 for a mediocre place, closer to $2k for a decent place. Thats $1,500 left for all months expense. Don't see how an M3 fits anywhere.
Appreciate 0
      02-05-2012, 01:43 AM   #2
ideliver
Major
ideliver's Avatar
49
Rep
1,232
Posts

 
Drives: 08 E60 M5 & 08 Infiniti QX56
Join Date: Feb 2008
Location: At the gas station

iTrader: (0)

Garage List
2006 MB S430 SOLD  [0.00]
2003 E46 M3  [0.00]
They hit the genetic lottery. You might as well learn now...there is always somebody with more...

Work hard, save some money, live your life the right way...and quit worrying about what other people have...
__________________
Cars I've owned '76 Chevelle 350 RIP '82 Monte Carlo 350 RIP '82 Mustang 302 RIP '88 Honda CRX RIP '88 Olds Toronado sold '94 Toyota Tercel sold '99 Acura TL sold 2002 Porsche 911 sold 2003 E46 M3 Blk/gr 2006 MB S430 sold Current: 2008 Infiniti QX56 & 2008 E60 M5

Appreciate 0
      02-05-2012, 01:49 AM   #3
Q4P
Colonel
Q4P's Avatar
United_States
33
Rep
2,295
Posts

 
Drives: Too Much
Join Date: Apr 2011
Location: World

iTrader: (0)

Quote:
Originally Posted by theaf1don View Post
I graduated college last year and am an engineer at a big SV tech company. I'm making 100k base salary but still can't afford an M3. Yet at the same time I see so many high school and college kids driving M3s around. What gives?

After taxes and 401(k), its around $3,500 per month in CA. Then lets say rent is like $1,500 for a mediocre place, closer to $2k for a decent place. Thats $1,500 left for all months expense. Don't see how an M3 fits anywhere.
I am not a mathematician but how is 100K a year equal to 3500 / month lol. Either taxes in california are incredible or u are putting like 2K a month into your 401K.

Quote:
Originally Posted by ideliver View Post
They hit the genetic lottery. You might as well learn now...there is always somebody with more...

Work hard, save some money, live your life the right way...and quit worrying about what other people have...
+1
__________________
2jZ + RB26 + 4G63 + LS9 + N54 =
Appreciate 0
      02-05-2012, 01:51 AM   #4
theaf1don
Private First Class
United_States
8
Rep
127
Posts

 
Drives: 325ci
Join Date: Feb 2007
Location: USA

iTrader: (0)

Quote:
Originally Posted by Q4P View Post
I am not a mathematician but how is 100K a year equal to 3500 / month lol. Either taxes in california are incredible or u are putting like 2K a month into your 401K.



+1
Its high tax plus maxing 401k which is like 1500/month. I guess most people don't do this?
Appreciate 0
      02-05-2012, 01:54 AM   #5
Quick6EF
Lieutenant
Quick6EF's Avatar
23
Rep
488
Posts

 
Drives: E92 Space Gray
Join Date: Apr 2010
Location: Boston

iTrader: (0)

Saw your topic on the Misc. OP. Repped u
__________________
Appreciate 0
      02-05-2012, 01:55 AM   #6
Q4P
Colonel
Q4P's Avatar
United_States
33
Rep
2,295
Posts

 
Drives: Too Much
Join Date: Apr 2011
Location: World

iTrader: (0)

Quote:
Originally Posted by theaf1don View Post
Its high tax plus maxing 401k which is like 1500/month. I guess most people don't do this?
I think I solved your mystery in 2 minutes but at your age I would imagine that is a lot to put into a 401K... then again different priorities for different people.
__________________
2jZ + RB26 + 4G63 + LS9 + N54 =
Appreciate 0
      02-05-2012, 01:56 AM   #7
theaf1don
Private First Class
United_States
8
Rep
127
Posts

 
Drives: 325ci
Join Date: Feb 2007
Location: USA

iTrader: (0)

Quote:
Originally Posted by Q4P View Post
I think I solved your mystery in 2 minutes but at your age I would imagine that is a lot to put into a 401K... then again different priorities for different people.
Isn't it a good idea to max a 401(k) for tax reasons and savings?
Appreciate 0
      02-05-2012, 01:58 AM   #8
mesropb23
Lieutenant
mesropb23's Avatar
Armenia
8
Rep
594
Posts

 
Drives: E92 M3
Join Date: Oct 2008
Location: SoCal

iTrader: (6)

Quote:
Originally Posted by theaf1don
Quote:
Originally Posted by Q4P View Post
I think I solved your mystery in 2 minutes but at your age I would imagine that is a lot to put into a 401K... then again different priorities for different people.
Isn't it a good idea to max a 401(k) for tax reasons and savings?
Not exactly
__________________
2009 AW E92 M3
Appreciate 0
      02-05-2012, 02:01 AM   #9
Q4P
Colonel
Q4P's Avatar
United_States
33
Rep
2,295
Posts

 
Drives: Too Much
Join Date: Apr 2011
Location: World

iTrader: (0)

Quote:
Originally Posted by theaf1don View Post
Isn't it a good idea to max a 401(k) for tax reasons and savings?
This is a question you may want to ask someone other than a person on a vehicle forum...

Point being; this is different for different people... listen to advice and make your own decision.
__________________
2jZ + RB26 + 4G63 + LS9 + N54 =
Appreciate 0
      02-05-2012, 02:15 AM   #10
firstkill
Second Lieutenant
3
Rep
247
Posts

 
Drives: e93
Join Date: Dec 2005
Location: Alhambra

iTrader: (0)

Rough calculations for "0" dependents in california

108,000 a yr = 9k a month

4500 taxes, medicare, social secuirty ONLY even more if you take out some type of retirement contribution.

a lot of people only put it the max that the company will match.

take home is 5500 or less depending on how much u put into retirement.

lease an M3 with insurance is like 800 a mnth. you can squeeze it in if you try.

fk
Appreciate 0
      02-05-2012, 02:15 AM   #11
Oregano123
Banned.....j/k
Oregano123's Avatar
United_States
5
Rep
174
Posts

 
Drives: '09 535xi, '11 Panamera
Join Date: Jun 2005
Location: South Dakota

iTrader: (0)

Send a message via AIM to Oregano123
they chose the right parents.
__________________
Appreciate 0
      02-05-2012, 02:18 AM   #12
Oregano123
Banned.....j/k
Oregano123's Avatar
United_States
5
Rep
174
Posts

 
Drives: '09 535xi, '11 Panamera
Join Date: Jun 2005
Location: South Dakota

iTrader: (0)

Send a message via AIM to Oregano123
Quote:
Originally Posted by theaf1don View Post
Isn't it a good idea to max a 401(k) for tax reasons and savings?
depends on several factors. your AGI, your risk profile, the investments, risk timeline, whether there is matching by your firm, the economy, etc

and by economy, i mean...

"The Federal Reserve, which cut its target for the federal funds rate to a zero-to-0.25 percent range on Dec. 16, 2008, said last month that rates would remain “exceptionally low” at least through late 2014. While the unprecedented period of near-zero rates is meant to aid an ailing economy, it poses challenges for banks, insurers, pension funds, and savers.

The hope is that by making mortgages and other loans cheaper, ultra-low rates eventually may revive economic growth, Bloomberg Businessweek reports in its Feb. 6 issue. For now they’re squeezing profits at banks and disrupting investment strategies at insurance companies and pension funds. They’ve reduced payouts on savings accounts and bonds, and may lead to higher bank fees and insurance premiums.

“For most people, there’s been more downside to these low rates than upside,” says Barry Ritholtz, chief executive officer of FusionIQ, a New York-based investment research firm. “They’ve punished savers and people living on fixed income, and made insurance more expensive.” "
__________________
Appreciate 0
      02-05-2012, 02:20 AM   #13
Q4P
Colonel
Q4P's Avatar
United_States
33
Rep
2,295
Posts

 
Drives: Too Much
Join Date: Apr 2011
Location: World

iTrader: (0)

Quote:
Originally Posted by firstkill View Post
Rough calculations for "0" dependents in california

108,000 a yr = 9k a month

4500 taxes, medicare, social secuirty ONLY even more if you take out some type of retirement contribution.

a lot of people only put it the max that the company will match.

take home is 5500 or less depending on how much u put into retirement.

lease an M3 with insurance is like 800 a mnth. you can squeeze it in if you try.

fk
I would move from California tomorrow...
__________________
2jZ + RB26 + 4G63 + LS9 + N54 =
Appreciate 0
      02-05-2012, 02:29 AM   #14
theaf1don
Private First Class
United_States
8
Rep
127
Posts

 
Drives: 325ci
Join Date: Feb 2007
Location: USA

iTrader: (0)

Quote:
Originally Posted by Oregano123 View Post
they chose the right parents.
lol
Appreciate 0
      02-05-2012, 03:04 AM   #15
whip_lash
Lieutenant
whip_lash's Avatar
4
Rep
403
Posts

 
Drives: 335i
Join Date: Mar 2011
Location: Toronto

iTrader: (3)

1500/a month for 401k is insane... man live it up for a few years and buy your self something nice. I know i would be if i was making 100k a year...
Appreciate 0
      02-05-2012, 03:21 AM   #16
theaf1don
Private First Class
United_States
8
Rep
127
Posts

 
Drives: 325ci
Join Date: Feb 2007
Location: USA

iTrader: (0)

Quote:
Originally Posted by whip_lash View Post
1500/a month for 401k is insane... man live it up for a few years and buy your self something nice. I know i would be if i was making 100k a year...
You have to remember, thats $1,500 I'm saving pre tax. If I were to spend it, it would only equate to like $1,000.
Appreciate 0
      02-05-2012, 03:39 AM   #17
lopealle
Resident Black Guy
lopealle's Avatar
Zimbabwe
65
Rep
2,245
Posts

 
Drives: Lion
Join Date: May 2009
Location: Federal Way, WA

iTrader: (2)

Garage List
2006 M5  [5.00]
You cant a m3 and im trying to figure out how i can afford a m5
Appreciate 0
      02-05-2012, 07:38 AM   #18
Augenbrauezug
Captain
Augenbrauezug's Avatar
16
Rep
657
Posts

 
Drives: mk6 GTI
Join Date: Oct 2010
Location: Denton

iTrader: (1)

People can afford what they make priorities for.
__________________
Bimmer-less ATM
Quote:
Originally Posted by JayKay335i View Post
Straight PIITB. Then eat dumplings.
Appreciate 0
      02-05-2012, 08:37 AM   #19
stylinexpat
Captain
stylinexpat's Avatar
37
Rep
814
Posts

 
Drives:
Join Date: Aug 2008

iTrader: (0)

Quote:
Originally Posted by Augenbrauezug View Post
People can afford what they make priorities for.
I think your signature says pretty much explains it lol.. They eat dumplings
Appreciate 0
      02-05-2012, 08:50 AM   #20
Express
Major General
Express's Avatar
Israel
129
Rep
8,701
Posts

 
Drives: 06 330i
Join Date: Dec 2008
Location: The Promise Land

iTrader: (17)

Garage List
2006 BMW 330i  [4.15]
two words: laptop ceo
Appreciate 0
      02-05-2012, 09:09 AM   #21
FDM68
Captain
FDM68's Avatar
Wake Island
9
Rep
762
Posts

 
Drives: 11' 135i
Join Date: May 2010
Location: Georgia (hearts still in Germany)

iTrader: (0)

Just because they have one doesn't mean they can afford it so much. Allot live outside their means or like others have said they had rich folks etc... I see allot of young military members here in Germany buy themselves a nice Bimmer or Audi, of all sorts, because the dealerships give a good military discount and no taxes until you bring them to the states. Allot of these cars go up for sale right before they move stateside.
Appreciate 0
      02-05-2012, 09:31 AM   #22
Chewy734
Major General
United_States
165
Rep
6,792
Posts

 
Drives: 2006 BMW 330i ZPP, ZSP
Join Date: Dec 2008
Location: Minneapolis, MN

iTrader: (15)

Quote:
Originally Posted by ideliver View Post
They hit the genetic lottery. You might as well learn now...there is always somebody with more...

Work hard, save some money, live your life the right way...and quit worrying about what other people have...
this.

What you say is definitely not the case for all young(er) ones, but many/most have rich parents who are willing to spend money on whatever car their kids want. High schoolers drive Bentleys, new BMWs, AMGs, etc. I refuse to believe that baggers at grocery stores suddenly hit the jackpot with salaries orders of magnitudes greater than minimum wage.

Then you have the random young kids driving a new lambo because they sell aftermarket headlight parts, a seemingly unprofitable business making tons of money. How they do it? Beats me. I've given up. I have friends who got jobs after their BS degrees making $100k for the past 10 years. I'm stuck here with a great education scraping by and trying to find a job that makes 6 figures. Is life fair? No. Am I bitter about it? Not anymore, since I love what I do. Just gotta live within your means.
__________________

Currently for sale: N/A
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -5. The time now is 01:37 AM.




m3post
Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST