Is 340k equal his yearly gross income?
If lesser don't buy...
how to afford 530e m sport
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 Jun 18 2019, 05:10 PM
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#1
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2,289 posts Joined: Jan 2003 From: Stairway to Heaven 
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Jun 18 2019, 11:23 PM
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#2
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2,289 posts Joined: Jan 2003 From: Stairway to Heaven
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QUOTE(ypooi411 @ Jun 18 2019, 05:50 PM) would like to understand how this works? on what basis is this formula of 1 year income = value of car derived from? This is just a guideline, it's not exact science..based on your calculation. this guy need to earn almost 30k a month to afford this car. and since he has no commitment. the repayment is only less than 20% of his monthly pay. currently he is saving 14-19k per month...  But it's a good guideline taking in the the other big ticket expenses that is going to happen in a person life... Namely, house, wife, kids and education, cars, retirement House - is your friend just satisfy with a normal condo 600k or a 1mil link house or a 1.5m semi d? He's gonna buy just 1 house his entire life? I Wife - unknown - if he meet a gold digger that is attracted to his 530e, he could welll spend 1m on wife throughout a lifetime Kids - 300k - 500k living expenses. The kicker is when your kid want to study overseas.. 1m education.... This is per child mind you. Car - your friend want to buy 340k at 28. Assuming he change car every ten years, i reckon he gonna change another three times.. so his next car gonna downgrade to civic? Or u think he wanna maintain his status and buy an equivalent or more expensive car 3 more times! He could welll spend more than 1m just on cars.. Retirement fund.. 25 years of 0 income. if he want to maintain his 530e status.. 1m is not going to cut it There really is no right or wrong answer here... My short answer is if he want to buy his car and maintain a 530e lifestyle, then he ain't there yet.. But if he is determined that he can sacrifice some of the things i just said, then ask him to go ahead Else i think he better just wait until his 30s, when he has a clear idea of his financial status then buy... Besides, buying a car later means you will get a more advance car |
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Jun 19 2019, 01:39 PM
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#3
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2,289 posts Joined: Jan 2003 From: Stairway to Heaven
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QUOTE(ukauka2020 @ Jun 19 2019, 10:16 AM) so your advice is to not purchase the car then. you mention kids and wife and 25 year of retirement fund. no offense, but what makes you think his wealth wont grow since he is only 28 now. as mentioned, he is saving around 14-19k per month, this is after deducting all expenses. and if he properly plans the purchase, he wont even need to touch his current savings at hand. btw 1m for overseas education is on the high side, based on my understanding that amount of money is needed only if you enroll in courses like medicine or some high-end university. the average would be around 300-500k. I don't know whether his wealth will grow anot, i have no idea what industry he is in, his career projection.. likewise your fren dunno whether he get retrenched, get accident, or financial loss...We can only plan for the worst and hope for the best.. and car=1 year gross income is part of a safe financial planning guideline.. From what i guess, he is near to 340k gross income in a few more years, y dont he just wait it out? His savings come from inheritance or his income? |
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Oct 17 2020, 01:58 PM
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#4
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2,289 posts Joined: Jan 2003 From: Stairway to Heaven
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QUOTE(Arvinaaaaa @ Oct 17 2020, 01:14 PM) This one bullshit calculation Yea, i think so too.. especially after 40 yo.. |
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