DFW01TT

You can't go wrong using that formula irrespective of age.

Rxpert

Oh dang! That’s a mighty solid formula & tough to meet. Major kudos to you for being that disciplined!!!

I found a good formula in another thread that is a bit more “forgiving”:

Cars & Toys should always be less than 10% of total net worth (including real estate).

Westcoast

Considering the cost of Spyder, this is pretty restrictive.

This formula seems a little more real world...

Archimedes

I'm uber conservative when it comes to money and investments. When I was younger, I pushed it a little more with toys, but I've always saved far more than I spent. I'm a boring nerd.

911F1

My grandfather paid cash for everything. Never borrowed money. Things are different today, I understand. But, if you don't have the cash
to cover this purchase then you can't afford it. Regardless of financing it or not. It would be wise to have 6 months of rainy day money on top as well.
Every time we have a economic downturn and you see people losing their homes and such. I scratch my head. Really, you're stretched that thin. One month
of no pay equals a foreclosure. Save money then buy what you want. Not the other way around.

Westcoast

I am personally this way but my last wife made quick work of anything I salted away... thankfully I am not longer funding that side of the equation!

Westcoast

Depending on your financial depth and how things are for you in life determines a lot of this, when I was younger and thought I would eventually be able to cover things I would borrow with care, but after 2008 that all stopped, I made it out but just barely... so since then all purchase of this type are covered before I sign papers because you just never know.

Archimedes

Agreed, and in California, I think it requires even more savings. My advice to people has always been, do not buy a house in California unless you can survive five years without income (or a very low income) or can walk away from all of your equity without breaking a sweat. The quickest way for the average person to get poor is to buy California real estate and then be forced to sell into a down market. You have to be able to survive an extended downturn here or you can just lose so much money on your house. I have a relative that went from millionaire to dead flat broke, zero $ to their name during the last downturn. A series of bad decisions without enough cushion.

Flacht6MT

It still surprises me how many people don't have 12 - 24 months of living expenses put away as a safety net.

When it comes to spending money on things like a car or anything really, I generally tell people -if you like it, will use it (as defined by you), and you have the funds + savings to attain it, DO IT. Life is too short to be driving something boring...

COVID for some accentuates the need to "save" more, for me, it underscores the need to do things you've been "hoping" to do because tomorrow might be too late.

skeeter714

Same boat. Just turned 35 (single, no kids) and would like to get a 991.2 GT3 or a Spyder. This Corona thing has really, really changed my outlook. Although I may personally be 10000% ok and fine in this tough situation, my family members (all of whom are professionals or doctors/dentists) aren't and I've been floating my folks and brother (all exceptionally responsible with money, just never anticipated having to drop what they're doing at a whim).

I may walk away from my Spyder allocation. It may just be cheaper to get an APR tune and DSC controller for my Cayman S and call it a day.

Westcoast

Regarding your bolded statement, are you serious 1 to 2 years of cash just in case!?

Sorry but you must be part of a very wealthy part of the population to think that was possible, most would not have 6 months in savings let alone 2 years.

mrhebert

Don't forget, your dental practice will generate less income on your restart. I know because I'm also a dentist and our production has fallen off dramatically. It will take months to get it back where it was pre virus.

skeeter714

Yup. Mom has 3 practices and baby bro is an Oral Surgeon. Biggest issue now is convincing the staff to actually come back to work once they go back to full-time. Many would rather just take the unemployment, which I totally get.

So happy I talked my mom out of a CEREC back in Feb, lol

Flacht6MT

I'm definitely not considered "very wealthy", just comfortable.

If one doesn't have 12 - 24 months saved up, that's not good. It can be invested though, doesn't have to be cold cash sitting in a bank. I don't think you have to be rich, you just have to know how live within your means and be disciplined with finances.

theracer21

in this planet few people have that privilege. In NYC , with all the expenses, you will need $300k just in case...