I apologize in advance for starting another "can I afford" thread, but I really need some second opinions before making such a big decision. Also, I'm actually looking for real advice. This isnt a post looking for validation.
INCOME ($220k)
Since 2017 I have run a business. All the income figures below are actual take-home.
Last 12 months: $260k (pretax, of course
2019 expected: $225k (also pretax, of course)
2018: $146k (after tax)
2016: $91k (after tax)
2016: $55k (after tax)
2015: $31k (after tax)
NETWORTH/PORTFOIO ($468k)
This is a very cash intensive business, so most of my money is tied up in the business in the form of inventory. Networth looks like this:
Cash: $150k
Invested (non business): $19k
Inventory: $281k
Paid off car: $18k
Total: $468k
EXPENSES ($19k)
Total personal monthly expenses come out to ~$1500. I live an extremely frugal lifestyle. Annual spend last year on EVERYTHING non-business, excluding retirement contribution was about $19k. Works out to a 92.5% savings rate. I do not own a home. I rent.
REASONING
I'm starting to burn out, and I have pinpointed the reason to the fact I never reward myself. I dont want many things, but I work very hard and, yes, I receive money in return, but I dont do anything with it. It feels like I'm working for nothing. I live the same as I did when I worked much less often. I think finally rewarding myself with something I've always wanted would motivate me to keep going. My biggest concern with this purchase is that there is always potential for my income to halt. Unpredictable shit happens. While an abrupt and sudden business failure is not something I foresee, its always possible. In the event my business did suddenly fail, I could always sell off the inventory on ebay, albeit at a much slower pace. As far as I'm concerned the inventory and my networth would not be at risk, just my cashflow. The car can also be sold, of course, as I have the funds to pay off the loan.
CAR DATA ($85k/1200 per month)
Since I was a kid I've had sort of a dream to own an Aston Martin, and financially I think it is finally possible, but I want to make sure I'm not being reckless. The cost of the vehicle is ~$85k. My car + some cash as down payment would bring the out-the-door price to about $65k. I run a cash intensive business, so doing 20% down and financing the rest would be most optimal in my situation, and monthly payments would come out to $1,197/month. Insurance quote is $400/month. Maintenance would be DIY which cuts the cost by 85% and I estimate about $2k/year. I've done seriously extensive research in the maintenance aspect of things. I drive very little, know all the wear items, and I am very confident on my $2k/year figure. Total monthly payment for the car, all included would be $1,763. The particular model I'm looking at has been sitting at $70 - $90k for 3 or 4 years now and is either at, or near the bottom of its depreciation curve so I believe loss on depreciation would be minimal. Assuming worst case I sell it for $60k when I'm done, total annual COST would be ~13,200.
Submitted May 22, 2019 at 06:43PM by Sauin http://bit.ly/2VF5HEt
