The balance: saving too little vs saving too much. AND Tesla

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. oh, I know what it feels like being under the microscope now.

Here is more information for those curious about our budget:

Income: 10,200 (after 401K, FSA, other deduction)
Condo Rent: 1760
Total:11,960

Mortgage (piti):4250
Condo expense:1300
daycare:2050
Roth IRA:917
529: 833
food:1000
utilities: 550 (include cell/internet)
car: 200 (insurance and gas)
entertainment: 200
clothing: 150
Total: 11450

There is 500 dollar left each month usually and bonus once an year (5k-10k). We do a big vacation with the money.

Yes the saving we have are a combination of what the in-laws gave us on the last couple of years and when we use to have less kids hence less daycare and 529 contribution.

I feel naked now!

OP, we have somewhat similar financials, though higher HHI ($280) and smaller mortgage ($3100), if a bit less from our rental property. Plenty in savings/529 etc., plus we'll both have pensions. We actually are springing for a Model X, after running the numbers every which way and realizing that we can totally afford it. We don't tend to take big vacations, and if you figure the monthly payments will be ~$1,000/month or $12K/year, people easily spend that through various means we don't (travel, nannies, etc.). We're fine with doing largely driving vacations, especially since we won't be paying for gas. We just had our third kid and our current car is an elderly Prius, so needed something larger.

Just a word about the test drive: I agreed to it for my DH, thinking that would satiate him and then we could go get our Honda Odyssey. Nope. Only made him lust after the car more, and he's a hugely geeky engineer (and I'm a moderately geeky scientist), not a car guy. But we're both excited about it and if this is our one extravagance, so be it. I probably wouldn't do it in your case, unless you put enough down that you can cover it monthly--but I also like more of a cushion in my budget. Wait for the Model Y, perhaps?

Do you live for today or tomorrow? It's a tough question and finding the balance is difficult. It depends what your goals are. If you want to become financially independent, retire early, and have enough wealth to take the whole family (including grandkids) on vacation regularly then you will need to save more aggressively than you do now (no Tesla). If you want to live life day by day and depend on keeping your jobs, working until social security kicks in, the kids/grandkids largely fend for themselves financially but enjoy your life to it's fullest (every day could be your last)--go ahead and buy the Tesla, you have the money.

My honest opinion is that even though you have the money to buy it (and buying it won't hurt that much as long as you both keep your jobs) you really shouldn't be buying it. Most people who make $240k would not spend $80k on a car. Just because someone making $100k needs to spend $30k or so to buy car doesn't mean that someone making $1m then goes out and buys a $300k car. That additional money is to be either saved or to upgrade other areas of your life. Given that you already are spending the max on your house and have two kids in day care and heavily reliant on in-laws $28k/yr contribution (which could go away, what then? you are basically able to buy an $80k car b/c your in-laws are giving you money...) I don't think splurging on a car makes sense. Buy a nice $40k car--it's easy to upgrade from a Civic. In a few years once the kids are out of daycare, perhaps your house has appreciated, paid down some mortgage principal, and your HHI is higher with some raises then revisit whether you feel good about splurging on a car.

[Anonymous]

Anonymous wrote:OP here. oh, I know what it feels like being under the microscope now.

Here is more information for those curious about our budget:

Income: 10,200 (after 401K, FSA, other deduction)
Condo Rent: 1760
Total:11,960

Mortgage (piti):4250
Condo expense:1300
daycare:2050
Roth IRA:917
529: 833
food:1000
utilities: 550 (include cell/internet)
car: 200 (insurance and gas)
entertainment: 200
clothing: 150
Total: 11450

There is 500 dollar left each month usually and bonus once an year (5k-10k). We do a big vacation with the money.

Yes the saving we have are a combination of what the in-laws gave us on the last couple of years and when we use to have less kids hence less daycare and 529 contribution.

I feel naked now!

I don't get it. You can't afford a Tesla given your cash flow. Were you intending to spend the $100K you have saved up?

[Anonymous]

You have the good fortune to be married to a saver. Don't talk him into pricey splurges. Your DH wants to save on non-essentials to make sure his family is financially secure, let him. If you think you're less of a [insert whatever your circle pressures you to be] by driving a Honda, you need to take a good look in the mirror and think about values/priorities in terms of your marriage and what you want to impart onto your children.

We have a similar gross and more net, no debt, and are sharing 1 car (accord), absolutely no way we can responsibly justify plunking so much cash into a luxury car.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. oh, I know what it feels like being under the microscope now.

Here is more information for those curious about our budget:

Income: 10,200 (after 401K, FSA, other deduction)
Condo Rent: 1760
Total:11,960

Mortgage (piti):4250
Condo expense:1300
daycare:2050
Roth IRA:917
529: 833
food:1000
utilities: 550 (include cell/internet)
car: 200 (insurance and gas)
entertainment: 200
clothing: 150
Total: 11450

There is 500 dollar left each month usually and bonus once an year (5k-10k). We do a big vacation with the money.

Yes the saving we have are a combination of what the in-laws gave us on the last couple of years and when we use to have less kids hence less daycare and 529 contribution.

I feel naked now!

I don't get it. You can't afford a Tesla given your cash flow. Were you intending to spend the $100K you have saved up?

It doesn't sound like you even need a new car. Maybe get one when you no longer have daycare costs.