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  #21  
Old 01-17-2018, 01:49 PM
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If you count 401k I invest around 50% of net income. 27 years old, not married yet but have girlfriend of 3 years so hope to soon. Only major expenses are rent and a pretty expensive car. I am frugal with everything else lol
Oooh what car
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Old 01-17-2018, 03:02 PM
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2016 corvette Z06. I got it when I passed my last exam lol wanted to reward myself. Always been into cars but kind of wish I had went with a 2018 regular one since now I am worried about how the previous guy drove it. It only has 7k miles though. After this car I am just going to lease something nice from now on haha

It's also bright yellow. Pretty much the opposite of a sound financial decision but figured now is my chance before I have kids/house

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Old 01-17-2018, 03:03 PM
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If you count 401k I invest around 50% of net income. 27 years old, not married yet but have girlfriend of 3 years so hope to soon. Only major expenses are rent and a pretty expensive car. I am frugal with everything else lol
Sounds like me. lol
What car do you drive if you don't mind me asking.
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Old 01-17-2018, 03:38 PM
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Wowzer. Not seeing any 2016 under $65,000 on carmax. I could not conceive buying a car that expensive. My most expensive was $28,000. But trading every couple years adds to the cost some.

Wonder how those depreciate. Looking at the price vs. MSRP it doesn't seem awful.
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Old 01-17-2018, 03:49 PM
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We save about 50% of gross income, and about 85% of net income (also net of the 401k contributions).

Less than half of our retirement savings and contributions are in a 401k, so they are fairly liquid if we decide to make a large purchase.
You live on 15% of net income? Are you doing one of those retire in 7 years less things?
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Old 01-17-2018, 04:12 PM
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You live on 15% of net income? Are you doing one of those retire in 7 years less things?
No, it's just the way the denominator gets shifted when applying pre-tax 401k to the 'net' calculation. Savings/Net Income could possibly be > 100% this way.
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Old 01-17-2018, 04:14 PM
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When you say "excessively high"... like 1x gross income? More? And when you say "cash" do you mean liquid investments or actual cash?

I have a pretty substantial cash (read: liquid) reserve relative to what's in my retirement. Didn't max 401k until last year. Again, hard to say no to yourself and keep up high rates of saving when you're not even sure what the money's for. Faster retirement, I suppose.
Not quite that high, our spending is less than 25% of gross income.
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Old 01-17-2018, 04:20 PM
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Wowzer. Not seeing any 2016 under $65,000 on carmax. I could not conceive buying a car that expensive. My most expensive was $28,000. But trading every couple years adds to the cost some.

Wonder how those depreciate. Looking at the price vs. MSRP it doesn't seem awful.
I got mine for $63k (90k MSRP) back in October from a Chevy dealer. It was kind of an impulse to get the Z06 as it was in my favorite color and wanted to experience the power. It will get you to "Go to Jail" speeds very quickly... Could have had a new base model, no options for around 48-50k. If I did that I would probably end up keeping it long term but if prices don't fall off too much for this one might sell it in a year or two. I could have leased either a base Vette or Jag F-type for $500-700 a month and this Z06 will probably end up costing me a lot more. I guess this is a lesson learned and my FSA bonus will offset the loss. I had been saving in advance for a down payment so I am only paying $710/mo for this car with 2% interest.

With regards to depreciation, I see prior generation Z06's go from mid 30-low 40s, with the 2013's touching $50k. If my car was worth high $40k in 2 years I would be happy.

I realize now I am not very good with doing my own minor work so if there is an issue I will have to take to dealer. I do have a warranty for a couple years though. But getting it used leaves a lot of uncertainty and I have anxiety when it comes to this kind of stuff. (another pro for leasing)

I used to have a Nissan 370Z that I kept for 4 1/2 years. Got it for $26K OTD and sold for $9K, needed new tires, brakes and bumper was kinda banged up from a garage incident. Factoring in maintenance and tires, lets say $5k over that period, the car probably cost me $4xx per month outside of insurance and gas. So it makes sense for me to lease a nice car from now on as costs will be similar with a lot less stress. I just didn't figure that out until now. I do have a Hyundai Azera daily driver that I picked up with a Certified warranty until 2024 that I plan on driving into the ground.

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  #29  
Old 01-17-2018, 05:16 PM
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Yeah, depreciation and transaction costs can add up. My TL I bought certified used for $24k and sold for $15.5k after close to 2 years, so about $5,000 per year. I project the Honda, if I sell in 2 years, will be similar or less. That seems to be my average when it comes to these things. Considering that's significantly less than my annual bonus, I don't see the harm.

So if I kept a car 10 years, assuming it's spent at that point, I could get a $45k car for a similar outlay (assuming $5k repairs).
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Old 01-18-2018, 08:00 AM
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Considering that's significantly less than my annual bonus, I don't see the harm.
Ah yes, the standard 'is it bigger than my bonus' unit of measurement
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