Quote:
Originally Posted by Unregistered
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!
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millionaires minus the value of their dwellings are nobody. these millionaires prepared to stay with strangers for meager sum by renting out 2 out of three bedrooms of their apartments. what is privacy to them carry no meaning. are they millionaires in real terms? only they themselves know.