[alechilliard5]

Hey guys, I got a lot of flack over on Reddit for asking....but I thought maybe over here I could get a little more love.

I'm 21, married, and I want a Z06.
We have two businesses on the side (wedding photography & network marketing) and I'm new to pharmaceutical sales.
With my new job there's potential to make some great income.
I'm wanting to set some goals, etc.
Is 25k/month a good goal to look at before getting a z06? Is that reasonable or should I be making more than that? What have you guys done, What are your payments, what did you put down, what is your yearly income, etc? I'm just wanting to seek out some answers. I appreciate the help.

PS (I've already spoken with Geico and my premium will only go up $600, so that's not a big issue either.)

 

[gregf71]

Dude im 26 and from what i have learned, life is short and do what makes you happy. If you can afford it go for it, ive found a z51 at 737 a month (1.99 for 72 through usaa) is in my budget so thats my thought and im going to be putting around 20K down

 

[NJBen]

With a post like that it's beyond me how anyone would give you flack...

 

[rdslon01]

In my opinion, your income does not matter. What matters is your savings.

My suggestion would be for you to sit down, create a spreadsheet, and include the following:
1) What have your monthly savings been for the last xxx period of time? If your life has significantly changed in the recent past (you got married, got a new job, et cetera), then the historical data you have may not be relevant to your new situation. Be careful about just going on the last few months, because you may miss expenses which only occur on a yearly basis, not a monthly one. Be sure to subtract out ALL your monthly expenses over that last xxx period of time. Again, be careful of expenses which are yearly in nature (for example, be sure to include things like paying extra AMT taxes in April, going on vacation, et cetera).
2) How much money do you need to put away on a monthly basis into retirement, emergency funds, and other things? Remember that $1 put away now will mean more at 62 than a $1 put away at 30 years old because of how much that $1 can grow over the next 9 years for you.
3) See what is left over so far on a monthly basis. Then subtract a generous fudge factor. It is better to be safe than sorry.
4) How much do you have left over for other things?

If 4) will cover your monthly payment on a Z06, and if you want it, then do it.

By the way, either make sure you pay for it 100% out of your own money (not your wife's or the family fund), or, if not, then make sure your wife is 100% on board and wants it as much as you do.

At least, these are my thoughts.

Best wishes,

-Rodney

 

[randysandow]

Tell you right now, my Stingray is bought and paid for. While I don't mind a car payment, I do mind one where I wouldn't be able to put most of the skin in the game, nor have the cash to backup the payoff. Right now, it doesn't sound like you can afford it, nor can you pay it off if something goes sour. So you should not do it.

 

[MSG C5]

I would think a $300K annual income would qualify most people considering a Z06, however as mentioned earlier, don't focus on your potential income, rather your savings and investment portfolio. Get those in line, and the decision will be easier. I suggest waiting a year and see how well your new career goes as well as your other business channels.

 

[alechilliard5]

In my opinion, your income does not matter. What matters is your savings.

My suggestion would be for you to sit down, create a spreadsheet, and include the following:
1) What have your monthly savings been for the last xxx period of time? If your life has significantly changed in the recent past (you got married, got a new job, et cetera), then the historical data you have may not be relevant to your new situation. Be careful about just going on the last few months, because you may miss expenses which only occur on a yearly basis, not a monthly one. Be sure to subtract out ALL your monthly expenses over that last xxx period of time. Again, be careful of expenses which are yearly in nature (for example, be sure to include things like paying extra AMT taxes in April, going on vacation, et cetera).
2) How much money do you need to put away on a monthly basis into retirement, emergency funds, and other things? Remember that $1 put away now will mean more at 62 than a $1 put away at 30 years old because of how much that $1 can grow over the next 9 years for you.
3) See what is left over so far on a monthly basis. Then subtract a generous fudge factor. It is better to be safe than sorry.
4) How much do you have left over for other things?

If 4) will cover your monthly payment on a Z06, and if you want it, then do it.

By the way, either make sure you pay for it 100% out of your own money (not your wife's or the family fund), or, if not, then make sure your wife is 100% on board and wants it as much as you do.

At least, these are my thoughts.

Best wishes,

-Rodney

Thank you so much Rodney. This is a great post!

 

[CO-2016Z06]

I have to agree with rdslon01 on all his points. For me I looked at the max I would want for a car payment. From there I worked out what I would need to put down to get payments into my comfort zone. While I waited for being able to place my order and to figure out what I was wanting, I put away my max comfortable car payment amount away into a savings to see if I really would make my commitment. I did this for about a year an a half without any issues. So I know that I was able to handle the commitment. The best part I had huge deposit and the payments were able to become lower than I was initially planning.

 

[NJBen]

21 and making 300k...I don't see what the problem is? I'd be more worried with inexperience and only having a DL for a few years and jumping into a car with that much power. But that's the parent in me saying that.

 

[JLG]

Relying on "potential of a great income" to make this purchase is like gambling with your family's future, Not a good idea... Having the money to comfortably afford a Z06, after you secure your families interests (not yours), is a better idea.

I would like to see you investing your income responsibly, this country needs more new young smart investors.

JLG

 

[thevetteman5]

As someone who is much older than you I would like to advise you as if you were one of my kids. When I was 38 I was going through a divorce and all my life I wanted a corvette. I always had nice cars but the corvette was my dream car. I purchased a brand new C5 in 1998 no money down. (STUPID MOVE). I so loved this car. I made very good money (not 300K). but it always kept me broke. L ess than two years later I wound up trading it in. Since than I have learned to be smart with my money and save and invest it. Our last couple of cars have been paid in cash and we have 0 debt. Nothing in life feels better than owning everything you have. I have been saving for several years now and will be purchasing a new C7 next year, all cash.Anything can happen in life. What if you lose your job, or your income drops badly, or God forbid a divorce. Trust me save for it. Making that kind of money it won't take you as long as you think. Listen to an old mans advice, you won't regret it.

 

[Mobius]

I'd be more worried with inexperience and only having a DL for a few years and jumping into a car with that much power.

That was my first thought as well.

 

[JLG]

The OP is NOT yet making 300K, he is asking if that is a good goal as income.

"Today, we have three kinds of people: They haves, They haves not, and they haves not paid for what they haves."

I saw this sign today at an office of a small business here in Houston, it just made me think....

JLG

 

[smajicek]

Do you own a house or are you renting? IMHO I would settle down 1st with a house and start family and then get your toys after you are stable with a saving history. I paid cash for my z51, house is paid for i only work to pay property tax, get medical insurance, and put food on the table and let my stay at home wife go shopping.:tears_of_joy:

 

[Valpo YnB]

There is not one single best formula for financing the necessities of life, whether it be saving and paying cash, finding excellent credit rates, or any combination therein. The best advice in my opinion, is to make sure you are comfortable with your decisions, and understand that any unforeseen changes in your financial situation could require changes in your assets. Remember to prioritize your desires before spending on them. When I say desires, those are specific to you. No one on this forum or anyone else for that matter can tell you which is more important, or should be. The order you put a house, spouse, children or toys, is really up to you. Just make sure you are totally honest with yourself when prioritizing those things, so that you will have no regrets later in life. If you do this successfully, you will be happy with your decision, even if it means that you don't end up buying the Vette.

Just my .02

 

[johnu]

Congrats on the new job. I'm retiring from 30 years in straight commission sales. First get a few months under your belt to see how you like it.....companies love salespeople in debt to keep them motivated....but sales people in debt are not able to keep there mind on the job.

 

[ryjackdad]

Another parent here. I remember my 21 year old self who had been driving for a whole "5" years, and no one could drive as good as I could. WRONG!
Sounds like you have a good thing going and a bright future. Please drive accordingly.

 

[DR. Z06]

I am filling guilty I don't make 300k and have a Z06, BMW M3, BMW X5 and a HARLEY Trike

 

[alechilliard5]

I am filling guilty I don't make 300k and have a Z06, BMW M3, BMW X5 and a HARLEY Trike

What are your payments, what did you put down, etc?

 

[rdslon01]

What are your payments, what did you put down, etc?

His situation may not be relevant to yours.

The following is not meant to be relevant to DR. Z06. I have no idea how old he is, or what is financial situation is. Rather, below I will just make up some hypothetical character and discuss him.

Let's say some guy named Abe is 80 years old. All of Abe's kids are financially self-sufficient, and his wife has passed. Abe has decided that he does not expect to live more than another 15 years, and that he has done all he needs to for his kids. His cash and marketable securities total 1.5 million. He has decided he will leave his house to his kids, but he is going to spend every last dime that he has of cash and marketable securities.

It is totally okay for Abe to spend $100,000/year MORE than he draws from his retirement (after taxes). Actually, that is exactly what he SHOULD do, if his goals are those outlined in the paragraph above (although he should reevaluate his situation at least each year to determine how much longer he expects to live, and what his newest financial situation is).

Now, let's look at someone 21 years old. Is it okay for them to spend $100,000/year MORE than they clear after taxes? Well, if they expect to live a long time, and if they don't have something like $8 million in cash and marketable securities already saved up, then, no, it is not okay if they want to be financially responsible.

I know I tend to be much more financially conservative than most (that goes back to me being raised in a coal town in Appalachia where many families were in poverty as defined by the US government), but, if I were you, I would save up for a little while and be in a position to pay cash for it (even if you decide to keep the money and invest it in a way that will return a higher percentage to you, after taxes, than what you can get a loan for). But that is just me. Do whatever you feel comfortable with.

Finally, the only downside I see to the last paragraph above is if you have an untimely death. In that case, you should have spent whatever to make you happy while you were alive (as long as it would not put your wife or family in debt after your passing). However, I much prefer to make plans assuming I will live a long time than to make plans assuming I will die soon. Again, that is just me.

Best wishes with whatever you do, and may you look back in many years from now and say, "I did the right thing."