So you're saying you now have a TV and a proper bed (not only the mattress if I remember correctly)?
Just a single bed stand but not a TV.
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So you're saying you now have a TV and a proper bed (not only the mattress if I remember correctly)?
I nice car is something that can never be justified. It's a want, plain and simple.
I had wanted a new V8 for my life up to that point, and when I finally got one it felt like one of the big achievements of my life.
Now I look back and laugh at myself.
If the OP wants an expensive toy, then decide if you're happy to make the sacrifices needed to get it. Then do it, or don't.
I think what the OP is really asking is at what sort of net worth is it reasonable to purchase a 100k car.
For example, if your net worth was $10 mil, it would be no sacrifice at all to spend 100k on a car. To take the example further if your net worth was $100 mil, I don't think you would need to think twice about buying any sort of car. No sacrifice would be involved. It would not really affect you in anyway at all in terms of future financial security for you or your progeny.
However, at net worths below $10 mil there may be still be quibbling and uncertainty about whether spending 100k on a car will affect your financial future.
His reasoning? The amount of money he could be making out of that stake via a good compounding investment.
The other thing is (not for people like Warren Buffet), when your net worth goes up, your requirements change. When you over 10mil net worth, you don't want the merc, you now want a Rolls Royce
I still think it's a good problem to have, thinking whether to by a Rolls Royce or not.
I drive a 8 year old territory. I rent nice cars on holidays. It feels special.
Warren Buffet would disagree completely. He spent many many years as a Billionaire and with only a very modest 15 year old standard car and still lives in the first house he bought (so the story goes).
His reasoning? The amount of money he could be making out of that stake via a good compounding investment.
Go for it. Just do it.
The goal of investing and making money is to improve your enjoyment of life. No one knows what the future brings. It is best to live in the now sometimes. Lets say you don't make 40 - then you will definitely regret not buying the dream car. And if you do live a long successful life, buying a car, regardless of price will not set you back too much in the overall scheme of things.
Perhaps so you might as well stay at home all day and not eat anything outside since that is money that could be compounding as well. Go for home brand foods because it's the same stuff, who cares what it tastes like it all goes to compounding.
Glad you agree.
Your examples are extreme but the principle is the same.