What I did to get an M4 at 23

[M-Pilot]

Originally Posted by jmg

Some good advice in the video. Budgeting is probably the most overlooked aspect of personal finance that people overlook. Real budgeting as in use something like quicken to know EXACTLY where your money is going. Project the entire year to see how much you will be able to put away at the end of the year. I especially like how the OP mentions running his personal finances like a corporation. YES. For those of us who run our own businesses, that's how I do it. In fact, I am an incorporated to take advantage of business tax breaks and split income. I'm literally a corporation of one.

Having said that, there are investments that are more stable than the stock market. Kids, max out your 401k, IRA, ROTH IRA etc. If the market is right and you are in it for the long haul; real estate. Leasing or buying you're going to end up paying close to and over $1000/month for an M3. That's the different between paying rent and paying a mortgage. The difference being that a mortgage could potentially return you hundreds of thousands (in my market at least), whereas rent is basically burning money.

Are there risks? Sure! The housing bubble is a lesson learned that there is no investment without risk. But overall, it's still a solid investment.

I'm paying less than $800 for my M4 ZCP with no money down. Also $1000 difference between renting and leasing is not accurate in every market. Not in Bay Area at least... My rent is less than $1900 for 1 bedroom (got lucky a few years ago). However, if I were to buy a decent place near where I live, my mortgage would be easily over $5K with 20% down. Again, it all depends on where you live.

[jmg]

Originally Posted by cntzl

I'm paying less than $800 for my M4 ZCP with no money down. Also $1000 difference between renting and leasing is not accurate in every market. Not in Bay Area at least... My rent is less than $1900 for 1 bedroom (got lucky a few years ago). However, if I were to buy a decent place near where I live, my mortgage would be easily over $5K with 20% down. Again, it all depends on where you live.

Of course it's going to be a downgrade to go from an apartment to a house. The question is, live in a high priced area with an apartment and losing your $1900, or getting a house in the suburbs and getting a tax break while making equity on a home? It's not going to work for everyone, of course, and even in my area (Southern California Los Angeles area) the housing prices are prohibitive.

[Richy Rich]

Originally Posted by jmg

Of course it's going to be a downgrade to go from an apartment to a house. The question is, live in a high priced area with an apartment and losing your $1900, or getting a house in the suburbs and getting a tax break while making equity on a home? It's not going to work for everyone, of course, and even in my area (Southern California Los Angeles area) the housing prices are prohibitive.

Everything in orange county is cheap.

[JoeyBananas]

Originally Posted by cntzl

I'm paying less than $800 for my M4 ZCP with no money down. .

Hahaha, sure you are

[Carnook]

Originally Posted by Brosef

affording these cars is different than being able to pay for them

Amen!

Ability to pay = you can send BMW their money each month

Ability to afford = After you pay your student loans, credit cards, rent/mortgage, max your 401k and IRA, have 8-12 months cash in the bank, eat healthy/live healthy you can send BMW their money each month.

[jmg]

Originally Posted by Richy Rich

Everything in orange county is cheap.

Depending on what part of OC.

[M-Pilot]

Originally Posted by JoeyBananas

Hahaha, sure you are

Not that I have to prove you anything but I'll still tell you how it happened. I agreed on a $500 over invoice deal in April when the residuals were the highest. My company also had a deal with BMW $1500 off and some money factor reduction. My CA at some point failed to lock the residual rate due to his own fault. When my car arrived at the end, not only he gave me the April's lease deal but also lowered the selling price to below invoice before applying my company's $1500 off deal. By the way, my car's MSRP was around $84K.

[jmg]

Originally Posted by cntzl

Not that I have to prove you anything but I'll still tell you how it happened. I agreed on a $500 over invoice deal in April when the residuals were the highest. My company also had a deal with BMW $1500 off and some money factor reduction. My CA at some point failed to lock the residual rate due to his own fault. When my car arrived at the end, not only he gave me the April's lease deal but also lowered the selling price to below invoice before applying my company's $1500 off deal. By the way, my car's MSRP was around $84K.

Curious. What was your residual factor? Selling price? Lease terms? MF?

The only way I can see you paying only $800 is for a 48 month lease or some money down.

[Richy Rich]

Originally Posted by jmg

Depending on what part of OC.

I can't find a nice two bedroom apartment for less than 10k up here, that's a mansion in any area of OC.

[M-Pilot]

Originally Posted by jmg

Curious. What was your residual factor? Selling price? Lease terms? MF?

The only way I can see you paying only $800 is for a 48 month lease or some money down.

Residual 62%, MF 0.00135 (0.00115 after MF reduction thru my company), MSRP was $84.3K, selling price $76.9K, $1500 off fleet discount, 7 MSDs, 36months 12k miles/year.

[M-Pilot]

Originally Posted by Richy Rich

I can't find a nice two bedroom apartment for less than 10k up here, that's a mansion in any area of OC.

10K for a 2 bedroom? I thought Bay Area was expensive...

[catchm3ifyoucann]

Originally Posted by ItIsChrisM

PewDiePie makes $12M AFTER the YT cut, but before taxes. Influencers and creators get their money after the ad revenue % alresdy gets cut out. Also YT takes closer to 40℅, not 60℅.

Either way, the point is valid...most YTers are not becoming millionaires.

My apologies mate, I forgot the specific #s but thank you for the clarification. From what I understand most YTers either work very very hard to get where they are or they just get lucky. A professional gamer stated in one of his blogs that he became pro just as Call Of Duty was becoming very popular and his channel just took off from there. Regardless some of these teens / young adults blow their money without any real savings toward what happens after their success is gone. I saw a 16 year old YTer that has a GTR. I don't understand how some parents allow their teens to make such reckless purchases with their money.

I am not hating on them, I just don't see the need to buy high end performance cars on a "career stint." Being 16-28 and being YT famous can only last for so long, and soon enough that income will dry up. If I was them I would be investing the money for additional streams of income. In my opinion YT is now very saturated and distinguishing oneself is a hurdle within itself.

[GrussGott]

Originally Posted by Powaup

What I did to get an M4 at 23

[video not gay porn]

Well ... my gay friends are pretty disappointed. there's still really nothing on this forum for them.

j/k - good Mr. Money Moustache thread

[Powaup]

Originally Posted by cntzl

I'm paying less than $800 for my M4 ZCP with no money down. Also $1000 difference between renting and leasing is not accurate in every market. Not in Bay Area at least... My rent is less than $1900 for 1 bedroom (got lucky a few years ago). However, if I were to buy a decent place near where I live, my mortgage would be easily over $5K with 20% down. Again, it all depends on where you live.

Lol yea, thought about buying a house before the car... then I looked around and saw that even half a mill doesn't buy you s*** in the bay area.

BTW, great deal you got on your zcp M4 congrats

[Powaup]

Looking back on the video, one of the factors that helped save money that I did not mention was the fact that I did not a have a gf for 75% of the time while saving up. Much harder saving money when you are in a relationship, specially in the early stage (speaking from my experiences)

[GrussGott]

Originally Posted by Powaup

Looking back on the video, one of the factors that helped save money that I did not mention was the fact that I did not a have a gf for 75% of the time while saving up. Much harder saving money when you are in a relationship, specially in the early stage (speaking from my experiences)

Rent. don't buy.

I'm really not going to be any help on this thread at all. but you knew that.

[SMV_M4]

I got my first E92 M3 at age 20 back in 2008. How'd I do it? My mother gave me a shit ton of money to put down up front thus making the monthly installment payments relatively cheap.

I AM NOT ASHAMED.

[Richy Rich]

Originally Posted by SMV_M4

I got my first E92 M3 at age 20 back in 2008. How'd I do it? My mother gave me a shit ton of money to put down up front thus making the monthly installment payments relatively cheap.

I AM NOT ASHAMED.

Awwww

[Donger Kim]

Originally Posted by jmg

Of course it's going to be a downgrade to go from an apartment to a house. The question is, live in a high priced area with an apartment and losing your $1900, or getting a house in the suburbs and getting a tax break while making equity on a home? It's not going to work for everyone, of course, and even in my area (Southern California Los Angeles area) the housing prices are prohibitive.

I don't see how he is "losing" $1900 a month. he is paying for a product/service, which is a place to stay for a month for 1.9k. He is clearly making a good financial decision for his area. I would imagine the property is worth about 1m for a 5k month mortgage at 20% down. The landlord brings in .2% a month vs value of the home before expenses, which is a terrible return, great for the renter.

I own real estate fwiw, but I just don't think you can really view real estate as a "solid" investment. Unless you get really lucky, or in it for the long haul, I just don't see how you come out ahead very often. Stick to SPY500 (The better advice is max out your tax advantage IRA allowance every year)

[jmg]

Originally Posted by Donger Kim

I don't see how he is "losing" $1900 a month. he is paying for a product/service, which is a place to stay for a month for 1.9k. He is clearly making a good financial decision for his area.

Relatively speaking, if you are paying for something that could have a return on investment otherwise, then relatively, he is losing that $1900 a month. A house that appreciates $100k over x years returns that minus interest, taxes, fees maintenance, etc when it comes times to sell. You get none of that renting. Again, this is relatively speaking. No one is going to say that you can't rent to have a place to live, especially if it's price prohibitive in your area.

Originally Posted by Donger Kim

I own real estate fwiw, but I just don't think you can really view real estate as a "solid" investment. Unless you get really lucky, or in it for the long haul,

For the most part, the long game is the "solid" investment when it comes to real estate. Sometimes it can be a quick turnaround for certain market conditions, but I am more referring to the long term goal, in which case, I'd rather own then rent.

(The better advice is max out your tax advantage IRA allowance every year)

Yup! This is good advice!

I'd also consider incorporating if you make over $150k/yr and take advantage of split income, a SEP IRA, and added corporate tax benefits.

[Desborough]

Originally Posted by Richy Rich

Everything in orange county is cheap.

[rmizzle101]

Cheers, man. Got my first m4 in December of 2015 at 21. Enjoy in good health and keep killin it.