Quote:
Originally Posted by ResoKP
It depends on how much he is able to save (if he can still save $2,000+/month after the car purchase, sure, it's not going to matter much).
Let's say he buys a car today and unable to save any money for the next 5 years until the car is paid off. This puts him at 25 years of investment horizon if he wants to retire in 30 years.
Let's fix the savings rate at $1,000/month for the sake of this example.
- $1,000/month @ 7% for 25 years: $812,117.64
Starts investing today instead of buying the car
- $1,000/month @ 7% for 30 years: $1,212,876.50
That's a difference of $400,758.86
A $60,000 car purchase ended up costing him $400,000
If we compare 40 years vs 35 years (more realistic given OP's age): $2,563,314.84 - $1,774,961.52 = $788,353.32
Now, in OP's specific case, if he has a trust fund set up by his parents in the 7 digits and is going to have access to it when he turns 25 or something, if it were me, I'd wait until 25 and buy a house + Lambo and bow down to my parents for granting me a huge head start in life 
Personally, I'd be saddened if I was only saving $1,000 per month, but that's just me and yes, my retirement goals are very aggressive even for my age.
To each their own lifestyle though  |
All good stuff. Just a quick word of caution.... "saving money" seems to be no longer a good strategy ... INVESTING money is the way to go. And that is getting more and more risky... taxation is draining your profits soo investing long term really needs professional advice and NO, I am not one " of those" ..