A question of economics, how much cash should you have today?
05-12-2020, 08:01 PM
#61
05-12-2020, 08:20 PM
#62
This is the exact opposite of what I should do, but the exact amount I would need to pull the trigger, LOL 
That's pretty impressive
I know at least 50 people with advance degrees at 40 years old, JD, MD, PhD, MBA, but nobody with 2-3 million in cash plus real estate. This is not the norm, but it happens I guess.
That's pretty impressive
I know at least 50 people with advance degrees at 40 years old, JD, MD, PhD, MBA, but nobody with 2-3 million in cash plus real estate. This is not the norm, but it happens I guess.
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05-12-2020, 08:55 PM
#63
Or they didn't go into debt to get through college and then they worked their *** off once they got out. There's always that path.
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DFW01TT (05-13-2020)
05-12-2020, 10:57 PM
#64
When I bought my GT3 I financed. Put enough down to get a payment that I felt comfortable with and left enough cash.
Paying cash is the ideal situation and what Dave Ramsey would recommend, but unfortunately I am not willing to wait many more years and potentially be in a different personal, financial or health situation that would make it less possible. If I needed the cash at some point and didn't want the payment, I could sell and come out with cash and no payment. I just see too many people waiting until they're 60 to do something and then not be in the right health to do it. I also see younger people not saving anything and living like there is no tomorrow and putting everything on credit/debt to make it happen.
Also, depends what you spend your money on. I don't go out to eat because I like to eat at home and I don't go on vacation often. If I do it is to visit with a friend. Most spend quite a bit on eating out and vacation. Also if you live in a cheaper part of the country and have a stable job, then it may be more possible to buy one of these earlier in life and while financing. If I lived in a place with a higher cost of living with a less stable job, I would not finance and wait longer.
Most important thing is to buy it because you want it, not because you think it will impress other people.
Paying cash is the ideal situation and what Dave Ramsey would recommend, but unfortunately I am not willing to wait many more years and potentially be in a different personal, financial or health situation that would make it less possible. If I needed the cash at some point and didn't want the payment, I could sell and come out with cash and no payment. I just see too many people waiting until they're 60 to do something and then not be in the right health to do it. I also see younger people not saving anything and living like there is no tomorrow and putting everything on credit/debt to make it happen.
Also, depends what you spend your money on. I don't go out to eat because I like to eat at home and I don't go on vacation often. If I do it is to visit with a friend. Most spend quite a bit on eating out and vacation. Also if you live in a cheaper part of the country and have a stable job, then it may be more possible to buy one of these earlier in life and while financing. If I lived in a place with a higher cost of living with a less stable job, I would not finance and wait longer.
Most important thing is to buy it because you want it, not because you think it will impress other people.
The point is be smart with your money, have goals, and spend your money wisely on what’s important to you (doesn’t have to be on a Porsche, but for many of us gearheads it is) while keeping that balance in mind.
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05-13-2020, 12:44 AM
#66
Burning Brakes
Thread Starter
Asking for financial advice on a Porsche forum is all lolz but I’ll take a swing.
The standard advice of 3 months expenses is much too small. I understand many people simply can’t afford to save money. They also can’t afford a a Porsche no matter how hard they try because the income side of the budget is brutally too small.
6-12 months seems a lot more reasonable. ........
The standard advice of 3 months expenses is much too small. I understand many people simply can’t afford to save money. They also can’t afford a a Porsche no matter how hard they try because the income side of the budget is brutally too small.
6-12 months seems a lot more reasonable. ........
05-13-2020, 01:09 AM
#67
Lol. The 918 board is dead. I don’t think they mingle with plebes. The Carrera GT board is probably your sweet spot.
05-13-2020, 10:17 AM
#68
RL Community Team
Rennlist Member
Rennlist Member
Think in terms of cash or equivalents, what should you have on hand in order to pay for a 115k$'s car today?
What % of your on hand cash would you devote to securing a 718 GT car today?
How does your age come into play?
How does the global economic outlook play into your decision?
Any opinions?
What % of your on hand cash would you devote to securing a 718 GT car today?
How does your age come into play?
How does the global economic outlook play into your decision?
Any opinions?
05-13-2020, 11:07 AM
#69
Burning Brakes
05-13-2020, 11:25 AM
#70
I've done it the first 2 years that I moved here from Italy and I was almost broke every end of the month.. but that's NYC life, same as LA or MIA.
05-13-2020, 01:05 PM
#71
As to top income, 5% at 299K , 1% at 718k, .1% at 2,757k.
So, 300k "middle class", difficult to accept, just because you spend more doesn't make you "middle class". The "middle class" classification has shrunk in numbers and the concentration of wealth has shifted, if what has been reported is taken as correct, so there's that.
On a related note, here's an article on Porsche buyer's demographics that's a bit dated but an interesting read;
https://www.stephenzoeller.com/targetmarket-segment-porsche/
Here's another that states that the average Porsche owner's income is over 500k;
http://carsofhtm.com/the-porsche-obs...hats-the-deal/
Last edited by BSO; 05-13-2020 at 01:27 PM.
05-13-2020, 02:00 PM
#72
Burning Brakes
Looking at income data, if you make over 200k, you're in the top 8.5% of US earners, the middle income earners show a range between 35k to 99k.
As to top income, 5% at 299K , 1% at 718k, .1% at 2,757k.
So, 300k "middle class", difficult to accept, just because you spend more doesn't make you "middle class". The "middle class" classification has shrunk in numbers and the concentration of wealth has shifted, if what has been reported is taken as correct, so there's that.
On a related note, here's an article on Porsche buyer's demographics that's a bit dated but an interesting read;
https://www.stephenzoeller.com/targetmarket-segment-porsche/
Here's another that states that the average Porsche owner's income is over 500k;
http://carsofhtm.com/the-porsche-obs...hats-the-deal/
As to top income, 5% at 299K , 1% at 718k, .1% at 2,757k.
So, 300k "middle class", difficult to accept, just because you spend more doesn't make you "middle class". The "middle class" classification has shrunk in numbers and the concentration of wealth has shifted, if what has been reported is taken as correct, so there's that.
On a related note, here's an article on Porsche buyer's demographics that's a bit dated but an interesting read;
https://www.stephenzoeller.com/targetmarket-segment-porsche/
Here's another that states that the average Porsche owner's income is over 500k;
http://carsofhtm.com/the-porsche-obs...hats-the-deal/
As for NYC, not sure if she was joking or not, but the couple of times I've been there, I can easily see 100-200 bucks a night dining out. Even street food is wildly expensive.
05-13-2020, 02:34 PM
#73
Burning Brakes
Here's another that states that the average Porsche owner's income is over 500k;
http://carsofhtm.com/the-porsche-obs...hats-the-deal/
05-13-2020, 02:39 PM
#74
Rennlist Member
05-13-2020, 02:51 PM
#75
The statement was about advanced degrees, not college. Law School, Medical School, PhD programs are 3-7 years and hundreds of thousands of dollars. And there is no way you can work during this type of schooling to any meaningful degree. Again, once you get out, your income isn't solely based on how much you work. A junior person at a law firm may be pulling 80-100 hr weeks and earning like $120k for a number of years. Not chump change, but not enough to buy a $100,000 car either. Most degree professionals will START making big money in their mid to late 30s. At that time you may also have kids and need to save for their college, etc. Again, only entrepreneurs, inventors, etc. who score in a business venture may make big money at a younger age (pro athletes and entertainers, notwithstanding). This is not mutually exclusive from having a professional degree, but it isn't most professionals.