Quote:
Originally Posted by Unregistered
10 years ago, our combined net worth (my wife and I) was $400k at best. Today, fast forward, our net worth is $2.5m. The increase is due to increase in salaries, savings, property appreciation, CPF increase, other assets appreciation, etc.
To us, a $63k or a $70k or even a $100k COE is nothing. Just a small % of our wealth. So, we can just buy a new car. 10 years ago, $100k is big to us, today it's small.
I'm sure there are many families with net worth more than ours, so many families will be buying new cars no matter what the COE will be. |
I hope readers realize this poster is not being wise about how to spend. They have a net worth of 2.5m and he thinks that 100k is considered small and nothing. Assuming they have only 1 property they stay in and it is worth 2m and leveraged 50%, minus misc assets, this means their investible asset is about 1m or so. So a car which cost about 200k all in is about 20% of investible asset. This is not nothing by any measure. Probably 3-4 years return? Buying the car probably set them back a few years in terms of retirement goal.
My point is that net worth of 2.5m should not view 200k expense as nothing. It is a sizable portion! Only if they earn income say 300-400k per year, then perhaps they can feel it is something they can do every 3-5 years. Even then, I would rather save until net worth about 10m before feeling that I can afford easily a 200k car. Btw, I am speaking as someone whose passive income is >1m. I don't even view 100k as nothing!