My only question is how bad do you want the car,and a car does not have to expensive to be effective it may be different at your age but after all the study you have done to become a Doctor,is this car going to put money back in your pocket,,I think you already know the answer to that question..willair..IMHO..
Please talk some sense into me....
- Thread starter aussieboy2010
- Start date
Have you actually done the figures on leasing a 150K car?
I ran the figures on a 112K car only a few weeks ago:
Over 5 years it is around 2.5K per month with a 32K residual.
Over 1 year it is 4.4K per month with a 74K residual.
Neither of those are particularly attractive options to be taking out of your salary that you could be sinking into shares or property instead!
I ran the figures on a 112K car only a few weeks ago:
Over 5 years it is around 2.5K per month with a 32K residual.
Over 1 year it is 4.4K per month with a 74K residual.
Neither of those are particularly attractive options to be taking out of your salary that you could be sinking into shares or property instead!
I'd agree, buy a $70K car, put the rest towards investments.
IMO 95% of people tend to go for the absolute best/max they can afford - houses, cars, plasma...... that's why they stay poor. If your salary jumped to $300K, would you be looking at the $300K cars ? As a thought experiment, assume your salary is only $70K, what car brochures would you be looking at then ?
HAHHAHA Guys... I drove past a Porsche yesterday.. nice shiny black one. Top was down cos it was warmish in Melbourne. I was spot on.
Oldish man with blonde trophy girlfriend looking bored.
Oldish man with blonde trophy girlfriend looking bored.
Agreed!! Hence driving about with the top down.
Don't worry i'm just jealous... i wish i was someone's blonde trophy girlfriend.
No;
people get rich by creating/freeing up funds to do some investing with. That requires some delayed gratification. Once you have the funds, or access to the funds, then you can take as much risk as you like.
Aussie Boy is not even an investor or a business owner yet. He is just an impetuous young bloke with a few dollars burning a hole in his pocket, and is about to do the opposite of my above sentence; he will have less funds available to invest and/or run a business with. And, if he does start a business with his mindset, he would probably be broke within 5 years.
My whole working life has been running a business of some sort. Part of running a successful business is to manage available cashflow for expenses and more business development through various forms; advertising, staff training, stock purchasing, plant purchasing and so on, prompt debtor payments, extended credit terms, better rebates through supplier loyalty etc.
Profits should be re-invested back into the business and debt levels minimised. CASHFLOW and PROFIT are the keys. Ignore either at your peril.
If the business uses up valuable cashflow through un-necessary expenditure, the business can't grow, and can actually go broke, even if it is a successful business. I'm in negotiations to buy one such business right now.
This happens in many cases where the Directors start to see the dollars rolling in, and decide to do things like have the Director's Yearly meetings in Hawaii, or buy a company Mercedes Benz just because they are both tax deductible expenses and the business can afford it. The payments have to come out of the company cashflow first. Every business expense should lead to an increase in the business income from that expense. Most Directors are just buying the gizmos because they can; there is no investment component for the business in these types of purchases in many cases.
I would rather buy a $10k car, use the difference between your choice/mindset of direction and mine, to make the existing business very profitable, buy another business after this, then buy another and so on, until the after tax profits can afford to buy the toys.
This is delayed gratification in a business scenario.
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Yes, and do it on a realistic estimate of your salary, not the ego inflated 150k.
Another issue for you aussieboy is that when you work so many hours to earn so much income, finding the time to build your personal investments will be much, much harder...and we touched on this topic in another thread recently.
PS: Note that I have nothing against young doctors at all in case it comes across that way...I'm just arguing against financial stupidity!
How's his pre-nup looking?
Ladies and gentleman, a fine example of the tall poppy syndrome in action. Can i ask what you were driving?
Marc, i have been in business a long time as well. What your talking about is business 101 or common sense 101. You are referring to reckless spending, not risk taking.
Again,. i think you are talking from your experience only.
I know (and have advised) people who have taken an equity loan on their house at say 8%, bought a business with a 25%-30% net profit. 8% of that goes to the loan and they keep the change to buy gizmos with.
Its a very common scenario for those that don't want to or don't know how to start a business.
I have and still do buy tax deductible 'gizmos' to dump profit and reduce company tax.
Also, i have bought properties (4 in one weekend) using equity in my PPOR & IPs with $100 deposit and 106% loan.
The properties returned circa 8.5% - 9% gross and have grown in value hugely (150% - 200%). Whats this delayed gratification thing?
Its horses for courses mate. Not EVERYONE does the delayed gratification thing to get rich.
Again,. i think you are talking from your experience only.
I know (and have advised) people who have taken an equity loan on their house at say 8%, bought a business with a 25%-30% net profit. 8% of that goes to the loan and they keep the change to buy gizmos with.
Its a very common scenario for those that don't want to or don't know how to start a business.
I have and still do buy tax deductible 'gizmos' to dump profit and reduce company tax.
Also, i have bought properties (4 in one weekend) using equity in my PPOR & IPs with $100 deposit and 106% loan.
The properties returned circa 8.5% - 9% gross and have grown in value hugely (150% - 200%). Whats this delayed gratification thing?
Its horses for courses mate. Not EVERYONE does the delayed gratification thing to get rich.
I was honestly just joking been there in my younger days. It wasn't a porsche it was a new Ferrari 360 (no i wasn't the driver). We're only joking about the stereotype of Porsche drivers in the first few pages.
And I drive an Alfa 156 which i already said i regretted buying.
So you're telling me that you NEVER saved a cent, you spent it all on crap, and miraculously you wound up with the funds to start investing in a house or a business? OH; PLEASE!
EVERYONE has to delay some gratification to get to the first stage; either they save some money and buy some shares, or buy a house. It could be simply buying second hand clothes instead of the latest Gucci suit, or in AB's case it's the $25k Beemer instead of the $150k Porsche; but it's a delay; a sacrifice. This gives you the start, then you can take the risks with the fruits of the proper steps.
I had fantasies about buying a porche once, but when I looked closely there was nowhere to put a ladder, the roof would get all scratched when I tied my wheelbarrow on, you can't get many bricks on the passenger seat and I'd probably put my back out putting 10litre tins of paint in the back and if I wanted to convert it into something useful like a ute, the rear mounted engine would be in the way and there is nowhere to fit a tow bar. A totally useless vehicle, but they look nice don't they?
Tom
You need one of these..... German, almost as much power, (very) rugged....
http://digiads.com.au/car-news/late...kswagen_Touareg_TDI_@_Dakar_Rally_200711.html
Cheers,
The Y-man
Hey mate,
you're pretty much spot on. As an RMO, you're base salary is around that mark that you mentioned. The reason i have the capacity to earn a lot more than that this year is due to the rotations i selected. Not my inflated ego as you alluded to.
Basically 2 of the 4 rotations i have been given are night rotations. These night rotations are known for being extremely quiet. Very quiet. I'm talking like 10 calls for the week quiet. The way night rotations work is that you have 7 nights on and then 7 nights off completely. That is the reason i requested to do these rotations. During your 7 nights on you get paid at a premium rate due to the fact you're working over night, more importantly however you then get 7 nights off compltely to do what you want. My plan is to spend that time doing locum work. Locum work pays anywhere between $80-$120/hr. I've just been working in the country and there are people that come there from the city to do 3-5 day shifts working 10hrs a day at $100/hr. They provide you with accomodation and a vehicle. So basically on top of my base salary at my primary i have the chance to basically earn $1000/day doing locum work.
I worked out that due to the fact I have half my year as night rotations i'll basically only be working 32 weeks at my primary place of work. That leaves A LOT of time for locum work.
This was the reasoning for my inflated estimation of my salary. I was trying to be conservative in my estimation also.
I do see where you're coming from, but the reality is that this is just not sustainable.
In between all those night shifts, and then working during your weeks off...when do you get a chance to live a decent life?
What will happen next year?
Keep on doing much of the same, so you can maintain your 150k pa lifestyle??
People don't build careers as doctors working night shifts doing very little work or working random locum shifts...this is a dead end, and if you continued to do this you would only ever be able to earn 150kpa, as opposed to say $1MM pa for some specialists at the peak of their careers.
Think about this.
I have had similar discussions with friends of mine in the field, who like you aren't (yet) very financially savvy...although, lucky for you, you have found your way onto this website!
If after all this, you still decide to buy/lease the Porsche, well...good luck to you!
Weigh it up, $1.5MM of property or a 150k Porsche??
Which do you choose?
Hopefully this slapping around has been helpful.
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I don't see the difference between what I plan to do and people on this site who work 80+hrs per week to gain financial independence? Both are trying to work very very hard to seek what they want. I realise my alternative isn't financially responsible compared to slavering away to buy a house, but it wasn't that you were really attacking it was more the life i'd have to give up to earn the amount i'm saying is possible.
I think you have it a bit wrong though. I don't plan on working my 7 nights then straight away working 7 days. Trust me, i'm too lazy to do that. However working my 7 nights and then having a few days off and then working 4-5 days of locum is about right. That's almost the equivalent of having a weekend break. Considering last year I had several stretches of 25 days in a row, the plan for this year is far from a stretch.
As I've said previously, my goal was to buy my PPOR asap and then spend the year doing as much locum work as i can and knocking off as much of my mortgage as i can. This was the plan until i saw that car, thus my reasons for coming on here and asking for peeps to slap some sense into me.
