26 y/o with 350k income and impulse spending needs help

[marko]

Quote:

Originally Posted by Grinch Might be BS, but I've seen salespeople at my company earning that kind of money or better in their late-20s. Some of the sales VPs in their mid-30s are earning close to 7-figures.

I agree. It's industry dependent, but my old co paid very high 6 figures to a lot of sales and VPs.... many were in their early 30's.

A lot depends on where you live too. $350K in Manhattan?...living wage.

[frayne]

MDC, what is your education background ? Being in finance I would think you would have a much better handle own your personal finances. Also seems like you might consider a personal advisor as opposed to seeking help on this type of a board.

[ShortInSeattle]

Perhaps those who simply disbelieve the OP should just move on to the next thread?

(ducks and covers)

SIS

[frayne]

Quote:

Originally Posted by Letj Guess, grammar and proper writing skills are not required to be a Finance Director at your mega corp.

Hear, their and everywhere ? I had the same thoughts as well.

[GrayHare]

Hostile reactions are not the usual character for this board. Maybe the OP is a fake, but his story is within the realm of possibility, so I just accept it at face value and move on. If he's a troll the story will become more outrageous, and then he'll leave. After a cold shoulder response, it would not surprise me if he chooses to leave even if he has been factual with us.

[Lazarus]

The rules for retirement are the same no matter how much you make. You have to spend less than you make. Save and invest the difference.

I would first figure out at what level of spending I would be comfortable retiring at. Generally accepted safe withdrawal rate is about 4% If you are younger than 55 or so you would want to take a bit less. So something like 25 to 30 times your annual spending would be how much you need.

Figure out how long it will take you to get there at your savings rate. Then figure how long it would take you if you quit buying cars.

How much is your time worth? If you want to get out early you need to save the max you can and live as modestly as you are comfortable. If you want to live higher and spend money on cars or other depreciating assets you are going to work longer.

Lastly maybe a walk in a junkyard would remind you of the fate of all new shiny cars. Then take a walk in a cemetery to see what your fate is.

Maybe time in the office to have those shiny things is worth it maybe its not. Only you can decide that for yourself.

[eridanus]

I suspect the cars are a way to tell everyone, "Yes, I am young but I AM somebody!". Or maybe not.

The savings rate and buying 1-2 $100k cars/year doesn't work, given your take home. If you look at your quarterly brokerage statement(s), does it really have $5-15k in deposits/month? You're spending way more than you think. Or maybe the cars are on lease?

[KingB]

OP,
You must be a finance whiz to get that much money when you were just 21yo (maybe still in college or barely out of it). And then more than doubling that salary in 5 years. Your company must believe in your ability. Just apply that ability to your finances.

[Bestwifeever]

I actually don't think there is a problem with someone at this income level owning an Audi and a Ferrari (or even trading them in every year for new models). If you really are enjoying them, great. If you are feeling a little sick about owning them, then you probably should think about getting rid of the Ferrari. It's like drinking alcohol--if you worry about how much you are drinking, then you know you have a problem.

Whatever you earn isn't the issue imo. If you are for real, I hope you're not posting from your office computer as the IT people are passing around your pay stub right now.

[Texas Proud]

Well, I say let the guy alone... who know how he got the job... or if he even has it, but he has posted items that others would not post to prove his point... in the end, it really does not matter...

To the OP... why do you feel you have to have a new car so often The 'new' does not wear off of me for about 3 years... I had a BIL who did a trade in every 2.. I assume that you are trading in the used cars instead of holding on to them....


I think you are trying to prove to others that you 'have it made'... for some reason you need this validation... I would seriously look into why... it's not like a new car has any more utilization than a one year old car... and how many miles can you have on one anyhow

Good luck to you in your future... if you change your ways you will be FI very quickly and then can decide what

[Retire2013]

Dear MDC86 -- Here's what I would do, decide which of your cars you really love and then keep just that one. Sell the rest. Don't buy any more cars. The one you love should last you for 5 to 10 years. Don't spend money on anything other than what you need to have proper nutrition, look presentable for work and social occasions, and spend no more than 10% of gross income on travel/entertainment. SAVE the REST. Do not let the size of the pile of money cause you to feel the need to spend. Just ignore the size. Just keep saving. Find joy in reading, cooking, sharing a meal with friends and families. Get a dog, go walk your dog, fresh air, some play time with your dog. All simple things --- after a while you will notice that you are having a wonderful time with your life without spending enormous sums. Continue saving. Welcome to the Forum.

[retire2020]

MDC..Most folks have problem other way - not enough income to save enough for retirement. Your problem is simple to solve - Keep one car and that too lease it. I leased a Mercedez once(675/Month) for 39 months and now happy with Camry. I enjoyed while I had it but never got addicted to it. You're single -- you can save TONS at your salary. Imagine being married with Kids...worrying about their day care/college expense, mandatory family health insurance and life insurance - list will add on and on.
I earned 275K during Y2K time(earn half of that now), in IT and no clue about Finance wages, was 34-35 years old and first thing I did was to pay off my home in little less than three years - best investment I ever made. I then have been saving into different accounts atleast 50K/year. My need in retirement is 120K/Yr and hoping to achieve that with 3-3.5M(have now 2.25M) without counting 700K house value) in either 2017/2020.
BTW, I believe what you are making.

[glippy]

Even with that salary I couldn't bring myself to spend very much of it beyond a modest lifestyle before I had a solid $700k - $2M saved up.

Save and prepare when times are good because you never know what the future holds. You could wipe out in one of those cars, get a head injury, and find yourself having trouble getting a $40k/year job (or any other millions of hard-luck scenarios).

Personally I'd be saving at least 60%+ for five years or so. Then I'd start to feel ok about spending some money on toys.

I was making over $100k in my 20's but my cars were always almost 10 years old. But a big goal for me was being able to quit and spend my time hiking, cycling and sleeping in. If you don't mind work and really like your cars then I wouldn't begrudge you enjoying some of your money. But few people ever regretted preparing for a rainy day.

[obgyn65]

+1. Can we please let the OP alone. When I joined this forum 3 years ago, a couple of people did not believe I was (and still am) practicing medicine. Well they were wrong. Now can we please move on. Thank you all.

Quote:

Originally Posted by Texas Proud Well, I say let the guy alone... who know how he got the job... or if he even has it, but he has posted items that others would not post to prove his point...

[Htown Harry]

MDC86, here's an idea that may not require a counselor...

One poster suggested you are leasing the vehicles. Maybe, or you finance them?

If either is the case, perhaps you can use some psychology on yourself that has worked for me and others on the board - when making a move, wait until you can pay cash for the vehicles.

There are several benefits:

• no interest-related expenses
• at least to start, you'll may slow down the rate of vehicle turnover
• the "pain" of signing a big check reinforces the real, actual amount of money being spent
• if you're trading in, you may be more likely to move laterally or down in value as you change from vehicle to vehicle
• if turnover slows and the total car expense declines, you'll develop some practice in the feeling of delayed gratification that is inherent in a LBYM lifestyle and is an absolute necessity for successfully saving for a retirement that is an extension of your working-years lifestyle.

[NYEXPAT]

If I were a betting man, I would wager he was working for H. Wayne Huizenga
at the dealership level.

[FUEGO]

could be a trader or i-banker. DW works with traders that make many tens or sometimes hundred(s) of thousands in a month, and some are probably in their 20's.

[Letj]

Quote:

Originally Posted by FUEGO could be a trader or i-banker. DW works with traders that make many tens or sometimes hundred(s) of thousands in a month, and some are probably in their 20's.

No. He is a Finance Director.

[Running_Man]

If you cannot get you spending on cars under control, you will never be able to successfully retire. I suggest you stop and think what is giving you the thrill at the moment you leave with the car from the dealership that you did not have before and what is driving you to seek that particular satisfaction. Then find a way to expunge that desire from your life and focus on meaningful items.

At your current level of income that should enable you to reach true meaningful goals in relatively short order.

[FUEGO]

Quote:

Originally Posted by Letj No. He is a Finance Director.

I don't know that titles always mean what they say.