[G MONEY]

Originally Posted by disancke

Haha that was indeed a major factor triggering my thoughts on breaking up. It was horrible that your partner doesn't share your happiness for your dream car. We talked a lot to get her excited for the upcoming car. However, ending a relationship is always easier said than done xD At least she's joining the PCD with me now...

Most live on that famous street… One Way🤣

[geko29]

Originally Posted by Limegrntaln

I spent 10 years married, and another 10 recovering from a divorce. Now, 15 years after getting divorced, I'm finally living my better life.

[...]

but it's taken into my mid 40s to get here.

Let's see, 10+10+15=35. Of course you got divorced. I didn't know what I wanted in the 3rd grade either.

Just adding some levity. Thanks for sharing your story.

[GixY2K]

Personally, I don't like the term "Homeowner" or "Owning a Home" until I actually don't have any more mortgage payments. Which I would have, had I not started this expensive hobby of mine; I think sportbikes were much more cheaper, now that I think about it

[Mike00]

Originally Posted by curd

I have always been of the mentality that you secure your business, investments, & home first, and then start buying and playing with the big toys. Considering Real Estate & home ownership have long been differentiators between the poor & middle class (let alone real levels of wealth), it would be wise for anyone to invest in any sort of asset class & particularly their own homeownership.

I just turned 30 this year, and have waited quite a while to purchase a G80 - considering I had test driven the first '21 that arrived at my preferred dealership. Totally worth it because now I can consider the G80 "well within my means", and focusing on investments has opened even more doors for me, is allowing me to buy back my time, as well as even more toys.

There is no one size fits all in this world though, and there are many ways to financial independence & wealth. So long as you don't make moves that will saddle you with debt before you can really start to grow.

Just have to say I agree with this x1000. I'm all for fun but you have to balance against the future. My path was similiar:

- Bought my first property (25) condo.
- 29 I bought my first fun car an S4.
- 31 I gave up the fun car to build a home for wife and I (kept condo for rental) and to get married. Paid for wedding and settled on house in same week that was fun....
- 32-36 I kept my boring Jeep Grand Cherokee and focused on income growth and paid off my first rental property then bought 2 more which are cash flow positive + 15 year mortgages. The rentals means I have no mortgage since the income is greater than my primary home.
- 36 bought a Z06 at the start of pandemic in cash. Love that car and want to add a 911 next to it.
- 38 while I want the 911 I'm holding off on it added another rental property and will wait 6 years as I buy more properties. Why? because I want to retire at 53-55 with a custom built home and several fun cars in my 3 car garage (2 cars deep though).

ANyway long winded way of saying it's a balance. I've added fun cars in, could certainly add more now but I'd rather not shoot myself in the foot for the future as well.

Originally Posted by 02M3ForMe

Focus on becoming a top income earner. Not talking about passive stuff like asset ownership (real estate, stocks, etc). I mean active stuff like your own enterprise or being highly paid by somebody. If you truly and honestly commit to this (and commitment is measured in action, not words or thoughts), then give yourself permission to enjoy yourself during the process and get the 1 thing you want that won’t totally blow up your monthly burn (and won’t become a distraction; a street-parked G82 in the hood may be a distraction). If this were sports, I’d say commit to extreme hours in the gym to become great and allow yourself to buy cool clothes or whatever makes you happy on the side to keep yourself happy and sane through the process. Done right, you’ll put yourself in a place to earn a decade of home appreciation every year or less and these more traditional optimization strategies won’t matter.

Passive stuff is primarily for people with money already. And, with property taxes, maintenance, insurance, etc, real estate isn’t even as profitable as it appears. Nor is it as passive.

Learn to drive high value and spin off high income first, then funnel the wealth into the passive stuff to protect it.

Don’t get the G82 unless you have a suitable parking situation and the monthly won’t cripple your ability to be flexible or get in the way of the mission of becoming a top income guy. However, it’s not like you’re literally stuck with the car for life. You can make a mistake and back out of it relatively easily, it’ll just cost money. Buying one and getting it out of your system and losing $20k when you sell is fine. Just be humble enough to step back down the ladder for a bit if necessary. Only you can assess whether you’ve got the discipline to do this right or not.

Agree on the focus on the career piece. I also agree real estate isn't as passive as some people think; but usually just getting started with a new property the on-going maintenance is light if done right. But to say it's not profitable, people picked really poor properties. it is very hard to lose money in real estate. There are cases where it could be "more" profitable. but losing money is tough.

[2011ninja]

Originally Posted by GixY2K

Personally, I don't like the term "Homeowner" or "Owning a Home" until I actually don't have any more mortgage payments. Which I would have, had I not started this expensive hobby of mine; I think sportbikes were much more cheaper, now that I think about it

My friend has $500K+ in 401K
Stocks etc.

800+ credit score

Said he wants to be finically secure before he buys a house.

I'm like dude at the rate you're going you'll be 60 buying your first home.

Saving all his money for retirement.

I'm like cool

You'll be 70 you can buy your first home

[Tyga11]

Originally Posted by 2011ninja

My friend has $500K+ in 401K
Stocks etc.

800+ credit score

Said he wants to be finically secure before he buys a house.

I'm like dude at the rate you're going you'll be 60 buying your first home.

Saving all his money for retirement.

I'm like cool

You'll be 70 you can buy your first home

Unfortunately a lot of people take this approach to the extreme. They listen to people like Dave Ramsay and Susie Kolber and literally put everything away.

[Limegrntaln]

Originally Posted by geko29

Let's see, 10+10+15=35. Of course you got divorced. I didn't know what I wanted in the 3rd grade either.

Just adding some levity. Thanks for sharing your story.

Originally Posted by Limegrntaln View Post
I spent 10 years married, and another 10 recovering from a divorce. Now, 15 years after getting divorced, I'm finally living my better life.

[...]

but it's taken into my mid 40s to get here.

10+10+ "Now, 15 years after getting divorced" =5 years after the second 10 years, not 15. Follow the bouncing ball.

[Mike00]

Originally Posted by Tyga11

Unfortunately a lot of people take this approach to the extreme. They listen to people like Dave Ramsay and Susie Kolber and literally put everything away.

Honestly I can’t stand the cult of Ramsay. The idea that there is no such thing as good debt is insane. And you can really see that now with all the people who have 3.5% mortgage rates or lower.

The concepts he preaches around paying off credit etc is fine with me. but people shouldn’t let as cash flow positive debt as a negative. And his following definitely does.

[geko29]

Originally Posted by Limegrntaln

Originally Posted by Limegrntaln
10+10+ "Now, 15 years after getting divorced" =5 years after the second 10 years, not 15. Follow the bouncing ball.

Lol, yeah I did totally miss that didn't I?

[Limegrntaln]

Originally Posted by geko29

Lol, yeah I did totally miss that didn't I?

I'm old. I'm not quite that old.

[vasillalov]

Own 3 homes in Chicago. Will buy a custom G80 next year once 1 of my properties gets paid off.

[G MONEY]

Originally Posted by 2011ninja

My friend has $500K+ in 401K
Stocks etc.

800+ credit score

Said he wants to be finically secure before he buys a house.

I'm like dude at the rate you're going you'll be 60 buying your first home.

Saving all his money for retirement.

I'm like cool

You'll be 70 you can buy your first home

Here is a person who will look back and say, fuck I should have lived this life cause now it's over. I know you can't just go blow your wad and not have a saving. But……. You need to live your life. Just saying

[jmg]

Originally Posted by GixY2K

Personally, I don't like the term "Homeowner" or "Owning a Home" until I actually don't have any more mortgage payments.

There's some truth to this, but at pre-retirement age with a mortgage, what we really own is the equity. I'm going to retire in another home anyway, so however much it appreciates between now and 60yo, I own. Besides paying interest, that's what really matters. Do I want to live in a $400k home I can pay off in 10 years, or a $1,000,000 home that takes 30 years? If I sell it in 20 years anyway, does it really matter if the $1,000,000 home appreciated more than the $400k home?

Originally Posted by GixY2K

Which I would have, had I not started this expensive hobby of mine; I think sportbikes were much more cheaper, now that I think about it

Feeling this. I could have paid off my home in 5 years if I was single, didn't like to track my car, and drove something sensible. But a home full of loved ones, and a garage full of fast and fun cars IMHO is better than an empty house and a Prius parked in the garage.

[jmg]

Originally Posted by 2011ninja

My friend has $500K+ in 401K
Stocks etc.

800+ credit score

Said he wants to be finically secure before he buys a house.

I'm like dude at the rate you're going you'll be 60 buying your first home.

Saving all his money for retirement.

I'm like cool

You'll be 70 you can buy your first home

If I had $500k just sitting in the bank at 25-30 years old, I'd have WAY more fun and batshit crazy options to enjoy that money than at 70 years old. I'd probably also shorten my lifespan considerably.

[LLT]

You only live once!!!!!!! Go with your heart and you won't regret! BTW I don't think 2022 or 2023 are good time to buy a house, the money you have on your hand will depreciate over 8% every year so spend it!

I am renting an apartment in NJ area and I just picked up my first car yesterday and it is a G82 that I have waited for 6 months. Work harder and smarter, you will be paid more and play even harder!

[geko29]

Originally Posted by jmg

If I had $500k just sitting in the bank at 25-30 years old, I'd have WAY more fun and batshit crazy options to enjoy that money than at 70 years old. I'd probably also shorten my lifespan considerably.

Except, according to the post, the $500k isn't in a bank account, it's in a 401k. To get it into a bank account so it can be spent, you're going to pay:

~36% federal income tax (blend of the 35% and 37% brackets)
State income tax. For CA this would be ~11% (blend of the 10.3%, 11.3%, and 12.3% brackets)
10% early withdrawal pentalty if you're not 59.5

so ~57% of that money goes poof before you even get your hands on it. You're only left with $215k. Yeah that's still a fair chunk of change, but I (and I would hope most people) would not be super anxious to light $285k on fire like that.

[TK3pedal]

I think buying basically a 6 figure car before you are highly confident in your financial situation/security and future financial plans is not that wise. Although, I know it can be very tempting!
I can easily afford my M3 (homeowner, money in the bank...) but I debated, and still do debate, whether sinking that many $ into a car was the responsible thing to do. (Then I get behind the wheel and all is well with the world!)

[DO444]

Originally Posted by TK3pedal

I think buying basically a 6 figure car before you are highly confident in your financial situation/security and future financial plans is not that wise. Although, I know it can be very tempting!
I can easily afford my M3 (homeowner, money in the bank...) but I debated, and still do debate, whether sinking that many $ into a car was the responsible thing to do. (Then I get behind the wheel and all is well with the world!)

Of course it is not responsible.
It’s a waste of money.
I was very honest when I decided to buy the car with myself and family. I told them it was an utter waste of money and there is no good reason to do it, but I wanted it anyway.

They agreed happiness was worth some financial waste.
I appreciate that. On the other hand, I can think of much worse wastes of money. For me, vacations are pointless. You spend $20,000 for a week and your back home where you started?!

It’s nice while you are there, but…
Fun is usually a waste of money.

But, we are all eventually headed to the same place.
Some want to travel there with a smile on their face.
Some want to have memories in the bank, not dollars.
Neither right nor wrong, I’d say.

[2011ninja]

Originally Posted by DO444

Of course it is not responsible.
It’s a waste of money.
I was very honest when I decided to buy the car with myself and family. I told them it was an utter waste of money and there is no good reason to do it, but I wanted it anyway.

They agreed happiness was worth some financial waste.
I appreciate that. On the other hand, I can think of much worse wastes of money. For me, vacations are pointless. You spend $20,000 for a week and your back home where you started?!

It’s nice while you are there, but…
Fun is usually a waste of money.

But, we are all eventually headed to the same place.
Some want to travel there with a smile on their face.
Some want to have memories in the bank, not dollars.
Neither right nor wrong, I’d say.

Oh…,, there is definitely a right and wrong way to spend your money!


Dream Car? Unlimited supply of fuel and tires

or

Dream vacation? all the Piña colada's you can drink

[Gfit]

Originally Posted by DO444

Of course it is not responsible.
It’s a waste of money.
I was very honest when I decided to buy the car with myself and family. I told them it was an utter waste of money and there is no good reason to do it, but I wanted it anyway.

They agreed happiness was worth some financial waste.
I appreciate that. On the other hand, I can think of much worse wastes of money. For me, vacations are pointless. You spend $20,000 for a week and your back home where you started?!

It’s nice while you are there, but…
Fun is usually a waste of money.

But, we are all eventually headed to the same place.
Some want to travel there with a smile on their face.
Some want to have memories in the bank, not dollars.
Neither right nor wrong, I’d say.

Oh heck no. I don't have to but no way I would choose a car over traveling. My yearly vacation budget is well more than the cost of my car. My kids are with me for just 18 years or so. I'm trying to get them to at least 40 countries, the majority of animals and sea life before I send them on their way. Makes life much more interesting.

[Mike00]

Originally Posted by Gfit

Oh heck no. I don't have to but no way I would choose a car over traveling. My yearly vacation budget is well more than the cost of my car. My kids are with me for just 18 years or so. I'm trying to get them to at least 40 countries, the majority of animals and sea life before I send them on their way. Makes life much more interesting.

Second this.

Although not sure my vacations are more than my cars. Worth more in value? Yes.

[Gfit]

Originally Posted by Mike00

Second this.

Although not sure my vacations are more than my cars. Worth more in value? Yes.

Years and years later my kids are still talking about their experiences, rappelling down 250ft waterfalls, watching a lion hunt and kill, watching a zebra get snatched by a crock on a river crossing, diving with hammerheads in the Galapagos, shark feeds in exuma, hiking on 3,000' thick glaciers, swimming with manta rays and whale sharks in the Maldives, seeing an endangered baby rhino play with his mom, the ancient sites, temples and pyramids in Egypt. My kids can tell you stories for hours and they are only 11 & 13 with a lot more coming. Priceless!