How much net worth to afford a BMW M2 comfortably? (rent, vehicle)
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People with real high net worth don't buy expensive cars.
People that have a high unjustifiable feeling of worth buy expensive cars.
True. This is why I post the question to begin with. By definition, I am high net worth, but I've been driving normal cars since 18. So, this is why I'm entertaining the idea of owning a cool car one day. Just day dreaming.
There is also a book "The Millionaire Next Door" that was published about 20 years ago that discovered the same thing.
The biggest live lesson I have ever learned is that things are never as they appear you need to dig deeper.
I read "The Millionaire Next Door" also. I live by it. It's just that I am at the point where I'm quite a bit ahead of the game (for my age early 40's) and have a little desire to own something nice (like a BMW M car). My childhood dream car is a BMW M3. I am not saying I NEED it, I am just entertaining the idea of "WHAT IF" I buy one without affecting other priorities in life (ie 401k, 529, Roth IRA, mortgage). Will the numbers work out for me if I have say over 1.5MM networth.. etc.. that's all.
One of the traits of rich people is not putting resources into any asset that loses money. All of the truly rich people I know drive older Chevy's, and pickup trucks. Another trait of rich people is to not attract attention by wearing expensive watches or jewelry.
I think this is the fairy tale that "ordinary" people tell themselves as they are living on a shoestring in order to make saving 50%+ of their income more palatable. Yes, it is certainly prudent to drive used cars into the ground...but seriously, only an EXTREMELY eccentric multimillionnaire would live that way. Or, someone leveraged to the hilt with no liquidity.
If I had a few mill you can bet I'd buy a $50k sports car...and probably drive it until it died just because I'd love it so much - I'd buy it because the sheer enjoyment outweighed the cost. And I wouldn't let any Calvinistic "thou shalt not spend a penny on yourself" philosophy stop me.
Until then, I'll make do. But let's not delude ourselves that the huge luxury market out there is only fueled by lower or middle class people over-spending...it's well-to-do people enjoying their wealth. I'll take the middle-road and enjoy a few things while dutifully saving the rest.
I think this is the fairy tale that "ordinary" people tell themselves as they are living on a shoestring in order to make saving 50%+ of their income more palatable.
Sorry, but real studies of real millionaires say otherwise. Think about it. How does one amass a lot of money? Not by spending it on cars that depreciate their value over time.
The "huge" luxury market you speak of is probably smaller than you think and it fueled by hyperspenders that have high incomes. Think physicians, lawyers, stockbrokers, and bankers. These people tend to spend what they make and have low net worth relative to their incomes. That's who drives these cars. Not real millionaires.
If you are curious, read The Millionaire Next Door. I am listening to the audiobook again. Saving and being wealthy are not fairy tales people tell themselves. It's the way wealth is built. One dollar at a time.
wtf don't you live in NYC? If you were in Boulder...
What does your wife drive?
we take it hunting and fishing all over as well as take trips in snow country all the time . now that we are retired my wife does not need a car so all we have is the sahara .
i got to many tickets with my bmw's . there really is not much to do with them but speed .
on the other hand we make good use of the jeep and it is the 4 door so we can take the grand kids all over
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