[NorCalAthlete]

Originally Posted by amu3ed

I don't know your work situation but have you thought about moving to the valley? My wife has help so many people relocate in recent months because of WFH. $950k in the valley goes much much further.

Unfortunately I'm anchored here due to family - main support for my mom who's older and has some health issues so I stay close so I can do grocery runs, take her to Dr.'s appts, etc. Moving to the valley - let alone out of state - is not an option I'm currently considering.

[David70]

Originally Posted by GenXer

"I'm in debt up to my eyeballs" Let Lending Tree.com put you into an even larger debt with much a higher interest rate!

I think wealth is relative. In Miami driving a $100K car is the norm. Will Smith even wrote a song about it. Wealthy people down there drive $350K cars.

Personally, I prefer to make a decent wage in a small town and having my dollar stretch much further. This gives me the opportunity to change my vehicle almost at will.

You might be surprised with how many wealthy people drive normal cars and how many people struggle to keep the expensive car. Huge part of the population just wants reliable transportation and has zero interest in an expensive car.

When I moved from Los Angeles back to TN, friends couldn't understand why I would consider it. I lived a block from the beach but in a tiny apartment with no parking and with the same salary I bought a house a new car and my money left over went up immensely. When I moved out to LA I didn't realize it was normal for someone 29 years old to have roommates and I don't think most realized how much more expensive it was there than most of the country.

[MKSixer]

Originally Posted by David70

$270k in household income, age 60, normal debt and expenses, zero savings, I don't see this person having the option of retiring in the next decade unless he wants to take a massive hit to his income and to me is F'd. Not following how he only has a problem with crazy debt and expenses.

My goal is to be able to retire at 53 if I want to, maybe get a job that doesn't pay much but I like more or keep a similar job as I have now and spend more. For me the "rich" is being able to leave my job and not worry about it. I shake my head at the guy making $300k in a panic because he lost his job last month and has to find a similar job quickly, shouldn't ever happen.

There are options that they can take with that income. It will take discipline but there are great options they can still take.

[Alfisti]

Originally Posted by MKSixer

Making $150K taking home about $8250 to $8750 per month with a home expenses and other expenses making up another $4K per month, depending on family size isn't that much of a stretch.

It's not a decision I'd make but I've seen worse.

It's a massive stretch. You're talking 15% of one's net income on a car. $8K a month to run a family, with a mortgage, food, utilities, car costs, education, clothes .... $1300 on a car is bonkers IMHO.

[evil-G-nius]

Originally Posted by NorCalAthlete

Unfortunately I'm anchored here due to family - main support for my mom who's older and has some health issues so I stay close so I can do grocery runs, take her to Dr.'s appts, etc. Moving to the valley - let alone out of state - is not an option I'm currently considering.

I know how hard it is to live here in the Bay Area so I feel you. I am, however, looking to move out of town as soon as I possibly can. I don't see owning a home here a financially responsible idea seeing as I can get WAY more for the money outside of Cali. We have discussed moving to FL to be closer to my wife's grandparents (in Trinidad) and its nice and warm...plus I am just sick of the damn fires! I did the math and buying a house down there will actually save us money monthly! How crazy is that

[ryansandiegoM3]

dont make the same mistakes I do

[GenXer]

Originally Posted by David70

You might be surprised with how many wealthy people drive normal cars and how many people struggle to keep the expensive car. Huge part of the population just wants reliable transportation and has zero interest in an expensive car.

When I moved from Los Angeles back to TN, friends couldn't understand why I would consider it. I lived a block from the beach but in a tiny apartment with no parking and with the same salary I bought a house a new car and my money left over went up immensely. When I moved out to LA I didn't realize it was normal for someone 29 years old to have roommates and I don't think most realized how much more expensive it was there than most of the country.

I love nice things but I also hate debt. My house is brand new but not expensive. My car is 1/4 the price of my house. I have very little credit card debt. It's mostly for fuel and conveniences. I admit my taste in vehicle are more extravagant than most but I drive 100 miles a day and I'm built for comfort.

I'm well rested after an hour drive home. So what if it cost twice as much as an X1

[MKSixer]

Originally Posted by Alfisti

It's a massive stretch. You're talking 15% of one's net income on a car. $8K a month to run a family, with a mortgage, food, utilities, car costs, education, clothes .... $1300 on a car is bonkers IMHO.

Home costs are different in the states than in your neck of the woods, which I'm certain you know.

The rule of thumb I was taught was you can afford a car up to half of your annual income. I don't endorse his decision but I can see that for some people it may be reasonable. Just not me.

[MKSixer]

Originally Posted by ryansandiegoM3

dont make the same mistakes I do. Divorced, remarried, lost a million due to Gamestop.

But you're omitting a key data point: Where did you start before your loss?

[ryansandiegoM3]

Originally Posted by MKSixer

But you're omitting a key data point: Where did you start before your loss?

single

[MKSixer]

Originally Posted by ryansandiegoM3

single and selling mortgages before the 08 crash

I meant the number before you lost the million...

[ryansandiegoM3]

Originally Posted by MKSixer

I meant the number before you lost the million...

s

[The Libertine]

Originally Posted by MKSixer

And if it's on the internet, it must be true!!

TRUTH!

[MKSixer]

Originally Posted by ryansandiegoM3

sorry that was a typo, i meant i lost a million due to my ex wife

Well...this is understandable. Good luck on your recovery. The most important thing is that you are, I hope, happy.

[NorCalAthlete]

Originally Posted by ryansandiegoM3

dont make the same mistakes I do. Divorced, remarried, lost a million due to Gamestop.

Diamond hands man. It'll come back!

...or dump another million into Palantir and sit on it for a couple more years.

[ASAP]

Originally Posted by MKSixer

I'd call $150K per year middle, middle class in most places unless it's a single person with no family, not a single-earner nuclear/other family.

I would stick to the 10% rule in that scenario... not pay more than say $800 per month for a car... but then again I am super conservative. I try to save 37% of my net income every month outside of 401k etc...

[MKSixer]

Originally Posted by ASAP

I would stick to the 10% rule in that scenario... not pay more than say $800 per month for a car... but then again I am super conservative. I try to save 37% of my net income every month outside of 401k etc...

Well done, good sir!

[ramman434]

Originally Posted by evil-G-nius

I know how hard it is to live here in the Bay Area so I feel you. I am, however, looking to move out of town as soon as I possibly can. I don't see owning a home here a financially responsible idea seeing as I can get WAY more for the money outside of Cali. We have discussed moving to FL to be closer to my wife's grandparents (in Trinidad) and its nice and warm...plus I am just sick of the damn fires! I did the math and buying a house down there will actually save us money monthly! How crazy is that

I'm a realtor in S. FL. Come on down!

There's tons of people moving to FL from CA. My next door neighbors just moved in from Cali & my sister-in-law sold her house a couple of months ago to Californians. Cost of living, even here where it's still a bit higher than a lot of the country, is worth it, plus our weather. It's 85 & sunny right now!

[evil-G-nius]

Originally Posted by ramman434

I'm a realtor in S. FL. Come on down!

There's tons of people moving to FL from CA. My next door neighbors just moved in from Cali & my sister-in-law sold her house a couple of months ago to Californians. Cost of living, even here where it's still a bit higher than a lot of the country, is worth it, plus our weather. It's 85 & sunny right now!

Housing costs and weather are driving factors for sure. Looking at living in Stuart...we really liked that. We visited back in December 2019 and really enjoyed it. My aunt showed us around, she and my uncle live in Jupiter...it was 82 when we went and we were like...THIS is how we want to feel in winter. LOL.

We are also looking at places in Hawaii

[JJ 911SC]

Originally Posted by evil-G-nius

... We are also looking at places in Hawaii

Was rather expensive the last time I was there...

[David70]

Originally Posted by evil-G-nius

I know how hard it is to live here in the Bay Area so I feel you. I am, however, looking to move out of town as soon as I possibly can. I don't see owning a home here a financially responsible idea seeing as I can get WAY more for the money outside of Cali. We have discussed moving to FL to be closer to my wife's grandparents (in Trinidad) and its nice and warm...plus I am just sick of the damn fires! I did the math and buying a house down there will actually save us money monthly! How crazy is that

Originally Posted by evil-G-nius

Housing costs and weather are driving factors for sure. Looking at living in Stuart...we really liked that. We visited back in December 2019 and really enjoyed it. My aunt showed us around, she and my uncle live in Jupiter...it was 82 when we went and we were like...THIS is how we want to feel in winter. LOL.

We are also looking at places in Hawaii

Seems like being closer to them is irrelevant?

[M340Why]

Originally Posted by Alfisti

On 150K a year, $1300 a month on a car is INSANITY. That 150K has to be taxed, you can barely raise a middle class family on 150K.

I should’ve clarified, the statement was made with the assumption that the person is single. My original post was to highlight how with leverage, a decent income, and the priorities of a car enthusiast you don’t have to be a millionaire to drive a $100k car.

Also, If you think a $1000 car payment on $150k income is bad don’t work at a dealership you’ll be sick to your stomach lol. Count how many brand new trucks and full-size SUVs you see the next time you’re on the road. Those are about $60-80k before taxes and fees, do you think everyone driving those is living by the 10% rule? The majority of them are financed for $800/84 months because going into debt to keep up with the Jones’ is the American way.

At the end of the day I think everyone should do whatever makes them happiest. If an M5 parked in front of the shed you live in makes you happy who am I to tell you you’re wrong? That’s the beauty of choice