Mo money, mo (first world) problems

posted 3 months ago in Finances
  • poll: Should I buy a nearly 60k Tesla under these circumstances?
    you're crazy, buy the car! : (14 votes)
    18 %
    I get what you're saying, but buy the car anyway! : (25 votes)
    33 %
    I get what you're saying, don't buy that car! : (20 votes)
    26 %
    don't buy that car, but for reasons other than these (comment?) : (17 votes)
    22 %
  • Post # 16
    Member
    41 posts
    Newbee
    • Wedding: May 2014

    Just wanted to say, you sound like a lovely person and fully deserving of your newfound wealth. 

     

    Spend it in good health, and let your money work for you. 

     

    Ps I think there are a lot of good options for electric or hybrid vehicles that don’t come with the flashiness of a Tesla that you could consider (such as the aforementioned Prius). Downside is that well, it’s not as flashy as a Tesla. 

    Post # 17
    Member
    213 posts
    Helper bee

    anonymoosegoose :  I would judge you harder for not buying what you want because you’re afraid of other people’s thoughts than I would for spending your money on what you want. I say this as someone who will never spend that much on a car- it’s not what I personally value. Some people like fancy cars, others can’t stand the thought of spending that much money on something that depreciates the second it leaves the lot (probably your CEO). 

    My hesitation for buying the Tesla would be that it seems sort of like a betamax to me… How easy will it be to use and service that brand in your city? (Electric car owners in general have limitations in my city.)

    Personally I would be hesitant to purchase something that would require having a high income to upkeep. Your job is unexpectedly bringing in lots of money, might that new funding source dry up? I would live the same as ever, invest the inheritance and retire in ten years though lol. It depends on your financial goals! 

    Post # 18
    Member
    1834 posts
    Buzzing bee

    I know I don’t have all the facts, but I can’t get past your employer’s choice to give people $60k raises instead of balancing a raise with using this new funding source for helping the people you serve. Maybe that is the feeling you can’t quite put your finger on?

    Post # 19
    Member
    7070 posts
    Busy Beekeeper
    • Wedding: September 2012

    It’s a no for me, mostly because I just think there are far more options for eco friendly cars that don’t come with the price tag of a Tesla. I might just feel that way because while I like to have a nice car, for me a car is for getting from A to B, so while I keep my cars many years (had my current Highlander 8 years now) it seems on average most people I know trade up every couple of years.

    I think it’s great that you’re coming into some money and it seems like you have worked hard for your raise as well. I don’t begrudge anyone for wanting to make a splurge purchase, and if for you that means a flashy car that’s totally up to you. I guess my main hesitation would be that you’re still young and while 1.5mil is a substantial amount (and certainly life changing) it’s also not THAT much money when you think about it in terms of making it last many years. 

    Post # 20
    Member
    229 posts
    Helper bee

    I would hesitate because a) aforementioned quality problems with Teslas and b) your salary might not be at that level for very long. Funding sources dry up. And the inheritance isn’t significant enough to keep you flush with cash if your salary goes back down to $40k.

    Post # 21
    Hostess
    1854 posts
    Buzzing bee
    • Wedding: October 2017

    starfish0116 :  This though.

    There are so many other options out there and the Tesla is absolute shit from what I’ve heard. If you’re concerned enough about this to ask, it would definietely be a no for me.

    Post # 22
    Member
    308 posts
    Helper bee
    • Wedding: July 2020

    I work in social work which is notorious for being underpaid and working with people who have less.  My salary is pretty good though, although not quite as good as yours.  I can’t speak to the Tesla but I would purchase the car you want.  People spend their money on all sorts of different things that are of importance to them.  Why wouldn’t you want to purchase a car you feel comfortable in and enjoy driving?  I have a coworker who drives a Porsche SUV and I don’t think any less of him.  The only time that I worried about how a purchase would reflect on me in my profession is when my FH and I were deciding on engagement rings.  I didn’t want a diamond that would be too large as I meet with clients all day and I knew that would make me feel uncomfortable flashing it around (even though we could have afforded it), but I did get a nice size for my hand and it fits me well. 

    Post # 23
    Member
    6672 posts
    Bee Keeper
    • Wedding: June 2015

    anonymoosegoose :  while I agree that electric may be the future, right now you aren’t doing the environment any davors because the electricity is still coming from the same sources: gas and/or coal unless you’re near a nuclear plant. Additionally, if you are driving to poorer areas, will you be able to plug in anywhere if you need to? Seems like that would be the last place to get the equipment. 

    Personally I’d invest in a less expensive but quite good vehicle. Nice city mileage, more height (personal preference with cars), less obtrusive if a Tesla really is (I never notice them but my husband always does), maybe flex fuel. 

    This is preachy but be careful that you don’t fall into the trap that many do when they get a windfall, blow it all and wind up in the same position as before. Choose your investments wisely and not just because you can. I’m wondering if your new salary could just disappear if that funding source does, for one thing. 

    Post # 24
    Member
    3800 posts
    Honey bee

    anonymoosegoose :  I love cars, and would probably do what you are doing and buy something nice that I like. However, I am dumb with money and used to mostly getting what I want, so my frame of mind is shit. Have you looked into the actual environmental impact of electric cars? As in, what goes into making them and how the batteries are disposed? They aren’t as green as you may think.

    It sounds like your salary is unusual for your industry, and I would be cautious with assuming you will have a high salary indefinitely. The smart thing, in my opinion, is to save and buy something reasonable that you still enjoy driving, or get the Tesla used. It’s not about the fact that you can afford it, but more that cars are a shit investment and you could be saving that for retiring, investing, or have a nice healthy savings account just in case. Did you check the tax implications on the inheritance?

    Post # 25
    Member
    707 posts
    Busy bee

    There are a lot of negative articles on Teslas that vastly overstate rare/minor issues. Most of the problems listed in the article that was linked are either not true, or vastly overstated. And all EV batteries have slight performance loss at low temperatures. It’s physics. 

    I had huge reservations about buying the Tesla, but I’m now a very happy Tesla owner. Have been for 3 years. I have the model S. Sure it’s pricey, but man, is the maintenance on that thing low. It makes our Mercedes E350 seem like a clunky old horse drawn carriage. Other Model S and X owners we know have expressed similar sentiments on how low maintenance it is. 

    Test drive the car and see how you like it. 

     

    Post # 26
    Member
    14967 posts
    Honey Beekeeper
    • Wedding: June 2011

    It depends on what your goals for retirement is and your current/future lifestyle/expenses will be.  Yes 1.5mil is a lot, but… also not really, especially if you have lifestyle creep as you earn more money.  You say you lived paycheck to paycheck for 14 years, did you save for retirement at that time or are you playing catch up.  Yes, it’s easy to say you can easily afford a 60k car with 1.5mil cash sitting there and a 200k salary, but is that where you draw the line?  Or do you start saying that about other luxuries you want and then before you know it, you’re spending more than you think?  I saw a recent you tube video about how people who build wealth seem to be more careful with their money, very cautious about saving it and how they spend cause they HAD to be that way to build their wealth and their habits dont just change.  But people who come in to it… it just seems like a lot of money and theyre more likely to spend it.  I’d just step back and look at the bigger picture before starting to spend more just cause you earn more.  

    Post # 27
    Member
    880 posts
    Busy bee

    I would not buy the car or inflate my lifestyle in any way. I’m not clear if your inheritance amount is pre or post tax, but in any event it won’t last forever. You could lose a job, have unexpected medical issues, etc. and that money would be a good safety net. Saving and investing is the wiser strategy. I know it seems like a lot of money now but there is a reason why lottery winners tend to go bankrupt! 

    Post # 28
    Member
    6441 posts
    Bee Keeper

    I would personally not.  Granted you have the money now, but that doesn’t mean it will be there for ever.  I’d get a nicer car but not the tesla personally.  That’s just me though.

    Post # 29
    Member
    8274 posts
    Bumble Beekeeper

    anonymoosegoose :  I would definitely replace your car, but I’d cool the jets on a car that expensive. Tesla isn’t the only electric option on the market. I’m assuming that the $1.5 million is your net after any applicable taxes and while it’s a good amount of money I think you should be careful not to blow it. If you’ve been making $40k up until now what do you retirement accounts look like? Do you own your home? 

    Post # 30
    Member
    1389 posts
    Bumble bee
    • Wedding: June 2020

    I would definitely get a new car, but maybe not one as expensive as Tesla. You can get a brand new hybrid for half the price, and that’s likely what I’d do in your situation.

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