What Do You Splurge On? Am I foolish for "living" a little?

Your rent / utilities are artificially low, enabling you to save that much of AT income. I personally splurge on fine dining, but that's me. A BMW 535i might seem a bit odd to your coworkers so I would caution you on that basis, but if that is what you're really into, then go for it - it sounds like you've thought this out (car, gas, insurance, maintenance costs, etc.)

What do you mean artificially low?

And yes I've thought about future coworkers (have my own business right now) or worse, future bosses. "Never have a nicer car than the boss"

LordEcount said:   A BMW 535i might seem a bit odd to your coworkers so I would caution you on that basis

Agree here depending on what you do this seems kind of weird. A 5-series at 24?

Also, you talk a lot about your income, how does your net worth look? Any college debt, etc? Are you paying cash for this car?

debtinator said:   LordEcount said:   A BMW 535i might seem a bit odd to your coworkers so I would caution you on that basis

Agree here depending on what you do this seems kind of weird. A 5-series at 24?

Also, you talk a lot about your income, how does your net worth look? Any college debt, etc? Are you paying cash for this car?

I owe 10k on a car loan (current car) which I would pay off when I sell it and would finance the new car to help my credit.

Net worth is some saved up through college + 4k in car equity + savings for this year, ~ $90,000

I splurge on adventures and memories. I drive crap cars and I don't buy myself a lotta toys, but when it comes to travel and experiencing things, I don't hold back. My theory is this: in 10 years, I won't remember the car I'm driving. it'll just be one of the many cars I have driven. Background noise. The climb up Mauna Loa and going 50M deep into Loch Ness tho? I'll remember that.

So splurge on memories. They're all you really have, anyway.

If you are going to do it do it now because once you get married and have kids .... You know.

you obviously have made your mind.....just go buy the car to show off your e-epen1sDINK4LIFE said:   dawheat said:   Haven't looked into those cars specifically, but you can normally get really great deals on low mileage, 1-2 year old 5 and 7 series BMWs and I wouldn't be surprised if the CTS-V fell into the same bucket.

- If you're sold on those cars, I'd soften the blow by looking for a great condition, certified, and inspected car at a bargain - take your time and wait until you find a great deal.
- At 24, I'm a bit surprised you're interested in those cars as they have a more middle-aged vibe. Guys your age and making money are normally big on the M3, S4, and the like. Personally if I'm in your shoes, I'd get myself a sports car like a lightly used Cayman or 997 911. You'll have plenty of time to drive a big ol sedan for the rest of your life. I didn't make nearly your money at 24 but buying an S2000 and having a whole lot of fun in my mid-20s was totally worth it.

Thanks for the insightful post

I really want an AWD Sedan. I'll check out the M3 and S4, but I really liked the 535i I test drove.

If I were single.. I would definitely be all about a Porsche

NewGuy said:   Buy it. What's the point of posting on an internet forum and asking anonymous people? To make yourself feel better?

Asking for opinions. Lots of people on personal finance forums are frugal and swear by driving older used cars that won't depreciate. I'm 24 and am asking if what I'm thinking of doing is within my means to splurge a bit while I'm young, or if I should save $$ until I'm older.

Apparently asking for advice is NOT OK, based on the red I'm seeing at the top.

What's the point of an internet forum anyway then, if asking anonymous people on the internet for advice is stupid?

HB&CVs

I am 24 and am on my fifth BMW. I currently drive a 2007 X5 (sticker was $75k). I've had two M3s, another X5 and another 3-series. Personally, I NEVER get judged (good nor bad) on my vehicle choices. In fact, I convinced two people to buy certain cars (non-BMW, surprise surprise) because they respect my taste in vehicles. I never felt that the whole "never drive a nicer car than the boss" thing was valid. It's my money, I choose to do what I want with it. I work my ass off and can pay all my bills...frankly, no one should worry about what I do with my money--it's only my business. If you have $90k cash and you're making $130k at our age, you certainly should buy whatever car you want...IF you have ran the numbers and thought about it. I don't advise just going out and doing it because you "have the money." I am simply stating that you're asking us if you should spend your money a certain way, and I think that one should spend their money however they wish. However, I think a valid thought process should take place before ANY purchase, big or small. Good luck and let us know what you do.

By the way, I just gave back a 2012 5-series X-Drive loaner and I hated it. I'd really consider your other options before settling on a 5-series. The 535 really isn't even all that quick, either.

Edit to add: the CTS-V is faster than the M3 on the 'Ring...in case you weren't aware.

ETA2: I bought a timeshare, have had numerous vehicles, love "expensive" timepieces, and have other "expensive" hobbies. I do it all because I want it and I can afford it. I've thought about each transaction before going through with it and don't regret a single one. Maybe now is the time to utilize your salary, utilize your savings, and to do something for you. You never know what tomorrow will bring.

qcumber98 said:   Every time I go on a cruise, I buy diamonds. BA-ZINGGGGG!!!
Was that supposed to be funny?

qcumber98 said:   jaytrader said:   qcumber98 said:   Every time I go on a cruise, I buy diamonds. BA-ZINGGGGG!!!
Was that supposed to be funny?you bought alexandrite on a cruise to the Bahamas too??
alexandrite is the best hedge against the coming apocalypse

DINK4LIFE said:   NewGuy said:   Buy it. What's the point of posting on an internet forum and asking anonymous people? To make yourself feel better?


Asking for opinions. Lots of people on personal finance forums are frugal and swear by driving older used cars that won't depreciate. I'm 24 and am asking if what I'm thinking of doing is within my means to splurge a bit while I'm young, or if I should save $$ until I'm older.

 

Apparently asking for advice is NOT OK, based on the red I'm seeing at the top.


What's the point of an internet forum anyway then, if asking anonymous people on the internet for advice is stupid?You've mistaken FWF - an investment strategy forum for your personal spending adviser

You already know the financially astute decision is to drive a beater. You're not asking if you can afford it. Nor have you provided enough information for anyone else to evaluate the decision

You want affirmation that this is good financial decision? You won't get it here. You want a Suzi Orman decision that you can afford it? "Approved, boyfriend"

DINK4LIFE said:   dawheat said:   Haven't looked into those cars specifically, but you can normally get really great deals on low mileage, 1-2 year old 5 and 7 series BMWs and I wouldn't be surprised if the CTS-V fell into the same bucket.

- If you're sold on those cars, I'd soften the blow by looking for a great condition, certified, and inspected car at a bargain - take your time and wait until you find a great deal.
- At 24, I'm a bit surprised you're interested in those cars as they have a more middle-aged vibe. Guys your age and making money are normally big on the M3, S4, and the like. Personally if I'm in your shoes, I'd get myself a sports car like a lightly used Cayman or 997 911. You'll have plenty of time to drive a big ol sedan for the rest of your life. I didn't make nearly your money at 24 but buying an S2000 and having a whole lot of fun in my mid-20s was totally worth it.

Thanks for the insightful post

I really want an AWD Sedan. I'll check out the M3 and S4, but I really liked the 535i I test drove.

If I were single.. I would definitely be all about a Porsche
I'm 51 and would not want an old man car like the Caddy or 535i, if you want a BMW AWD get the 335ix. But better would be a new S4. And I'm married with kids but drive an R8. Also have splurged on cars since I was a teen, made me work much harder to make sure I could get better and better ones.

DINK4LIFE said:   NewGuy said:   Buy it. What's the point of posting on an internet forum and asking anonymous people? To make yourself feel better?


Asking for opinions. Lots of people on personal finance forums are frugal and swear by driving older used cars that won't depreciate. I'm 24 and am asking if what I'm thinking of doing is within my means to splurge a bit while I'm young, or if I should save $$ until I'm older.

 

Apparently asking for advice is NOT OK, based on the red I'm seeing at the top.


What's the point of an internet forum anyway then, if asking anonymous people on the internet for advice is stupid?
Because this isnt Dear Abby. You post ideas and opportunities for others to read about. Threads like this are called "clutter" or "noise".

But anyways, you say you have a car payment already. So does this mean you are splurging and spending your disposable income now, or are you spending what you expect to be disposable income in the future? Because if you plan to have another car payment being paid for from your paycheck, this isn't 'splurging', it's called "digging a hole"...

I splurge on my kids education and drive crap cars. Cars are only for a few years and people that are on welfare seem to have nice rides.

Short version: "I'm only 24 and already married. It's Saturday night and instead of being out and about with my friends, I'm home. Will a flashy car help to compensate for my quarter-life crisis?"

I say, sure, why not. You're good enough and you're smart enough ... and I'm sure if we look hard enough people like you.

Home prices (mostly sub $100k) are starting to rise slightly, as are interest rates. I recommend you looking at owning your own HOUSE (NOT A CONDO!!!), paid off, and possibly a second place as a rental or a vacation/weekend property. I also recommend silver American Eagles. You're too late to get into guns & ammo.

Don't do it. I was in the same boat. Bought a Lexus IS250. While I love the car's performance, there are better ways to spend money. (trips, concerts, sporting events) Wish I just bought a Camry.

Other peoples spending is completely relative. I've seen people "blow" money on things I consider ridiculous. I'm sure people think some of my spending is the same. It's about what makes you happy and what you can afford. Don't buy something because it's the latest and greatest or it will make you look better to others.

One tip I'd like to offer is this...... when I am contemplating a large purchase I do all the research first then sit back and wait. Sometimes the wait is a week, sometimes maybe a year. If I can't get it off my mind then it's something I really want. If I forget about it, then I didn't really need/want it in the first place.