Budget Help - Buying Tesla as first year attending

[WorkforFIRE]

Am I miscalculating something?
yes.

Is this wise or making a big mistake?
big mistake.

I have opportunity to possibly partner in 2 years. Would it smarter to wait and possibly deduct that expense as a partner?
yes. Wait to become partner, then buy the car in cash.

I have read many wise posts stating that avoid making big purchases after becoming attending and especially avoid buying cars like Telsa (my dream car!).
This is a big purchase.

it sounds like you already have your mind made up on getting this car. I would suggest you continue driving whatever you have now until you pay off your debt, save e fund, and then save enough to buy the car in cash. There shouldn’t be a rush to buy big fancy things.
making 300k per year doesn’t mean you can afford to go into more debt.

good luck.

[jbmitt]

I have opportunity to possibly partner in 2 years. Would it smarter to wait and possibly deduct that expense as a partner?

I'm not following what you think you can deduct as a partner and not as an associate. Commuting miles aren't deductible, I believe it's only if you are traveling between business locations.

Take care of your family first. Get situated in your new job, establish your living arrangements, build up your savings. You will eventually be able to afford the Tesla.

[Tim]

“I should be able to pay it in less than 6 years, but maybe my thinking maybe backwards, but I was going to invest instead of paying all of this debt all at once.”
•Think about this. You are borrowing money for a depreciating asset, so you can invest.
•Comp -taxes-20% of gross retirement=spending
•You will up the LTD insurance. Go figure out the real numbers include rent and relocation.
•kill the medical debt and save for the car.
•Buy a transportation car until you make partner.
•You mentioned most our You debt, pay that too.
The goal is avoid debt unless you have a need.
• I would think with a growing family of four taking on debt for a “want” that depreciates would not be a smart move until you have extra cash. You don’t need a luxury car with debt. New/used if you needed something and had to finance, I would delay the needed car as long as possible. Depreciating asset is with a family is a poor choice. You may love the car but you will love the cash more for your family needs in 2 years.

[chocolatebear11]

I don't know about you but I don't consider taxes being in the 'money saved' category.

Monthly income before taxes = 25k
Monthly income after taxes = 19k
Monthly income after saving 75% of after tax income = 4.75k

[chocolatebear11]

Thanks everyone! Taking everyone's advice and will delay it a couple of years.

[chocolatebear11]

I'm not following what you think you can deduct as a partner and not as an associate. Commuting miles aren't deductible, I believe it's only if you are traveling between business locations.

Take care of your family first. Get situated in your new job, establish your living arrangements, build up your savings. You will eventually be able to afford the Tesla.

Yes, will be at 4 different clinics.

[CordMcNally]

Monthly income before taxes = 25k
Monthly income after taxes = 19k
Monthly income after saving 75% of after tax income = 4.75k

I still think your numbers are off. According to the Paycheck City calculator you'll be taking home about $16k (which will go up once you reach your SS max) including your 401k and HSA deductions. Does your $5k month budget include your possible $1300 car payment. If so, that's living pretty lean for a family of 4. But anyway, when you say you're saving 75% of your salary, to me that assumes you mean you're saving 75% of 300k which you won't be doing. Maybe you meant that you'll be saving 75% of your take home which wouldn't be impossible just unlikely.

[G]

Yes, will be at 4 different clinics.

the deduction would be between the clinics, not the first/last trip of the day. also are you w2?

good call on waiting for the expensive car.

[chocolatebear11]

I still think your numbers are off. According to the Paycheck City calculator you'll be taking home about $16k (which will go up once you reach your SS max) including your 401k and HSA deductions. Does your $5k month budget include your possible $1300 car payment. If so, that's living pretty lean for a family of 4. But anyway, when you say you're saving 75% of your salary, to me that assumes you mean you're saving 75% of 300k which you won't be doing. Maybe you meant that you'll be saving 75% of your take home which wouldn't be impossible just unlikely.

Well, plan was to save 50% of take home pay. (according to paycity check, monthly is $18k and according to smartassests its $19k).
The 5k a month budget does not include the $1300 car payment.

If I only save/invest 50% of take home pay and don't spend on new car payments, then that leaves me with around $9k a monthly.

Again, I have budget for the last year and family have lived comfortably on $5K a month (that's living better than a resident?) unless I've been imaging things, which is why I thought I may be okay with getting away with a new car note.

I'm sure $5K in Texas is much different than $5K in Los Angeles or Boston.

[DMC]

This should be a treat, not a burden. Use it as a motivational carrot to reward yourself for paying off your debt; then pay cash.

[Random1]

If you are moving to Texas, and wanted to buy a F-150 extended cab loaded, this would be a different story, you could get your finances to work. But I would wait until you have enough cash, makes more sense.

[IlliniGopher]

OP: "Thanks everyone, I got the Model X. The Performance Model too!"

Just kidding. I love cars too. You should just get a Model 3 or Y. It's nearly half the price.

[childay]

OP you had to know the answer already lol
What is your current vehicle? Did I miss it?

[Peds]

I would love to get the collective wisdom of WCI on my budgeting plans.

I am in the fortunate situation of having paid most of my debt with majority of debt left being medical bill debt. I am completing a fellowship in July 2021 and will be taking a Job in Texas that will pay ~300k. Unfortunately, I do not have any wealth, but I plan on investing half of my net annual salary (~100k). I am budgeting around $5,000 for monthly expenses with my most costly monthly expenses being rent and health insurance (besides medical bills). I have a family of 4 and do need a new car for our ever growing family.

I always wanted a Tesla and would love to get the Model X. My monthly car payments would be $1,327 (72 months, ~2.49% APR).

Am I miscalculating something?
Is this wise or making a big mistake?
I have opportunity to possibly partner in 2 years. Would it smarter to wait and possibly deduct that expense as a partner?
I have read many wise posts stating that avoid making big purchases after becoming attending and especially avoid buying cars like Telsa (my dream car!).

ok to clarify because i dont think people are getting this: you want to borrow 90K to pay for a depreciating asset.
also are you even including sales tax, delivery fee?
also also car insurance on that is very different.
also also also i can get 2% for 36 months. tesla financing is not competitive.

you dont need an MX for a family of 4. a M3 will work so i dont buy that argument.
also also also also not even to talk about the MX being end of life, old tech, old battery, etc etc.

also also also also also, can we stop using "net" salary.
its great you will save 100K on 300K salary. thats a 30% savings rate. nothing to sneeze at.

so.....pump the brakes. even lease one while you get situated. you.dont.have.any.wealth.

[hightower]

So, I know you already said you would wait a couple years, but wanted to still give my 2 cents without beating a dead horse. First, congratulations on finishing training AND congratulations for finding this forum and asking questions early in your career. You will be in great shape if you follow advice here.
As someone who has been making 300k/yr for the last 4-5 years, I can tell you that a $90k+ Model X is too much car. I use the rule of thumb 20% salary as the maximum you should be looking to spend on a car if you want to avoid over spending. That would be $60k in your world. But I also believe you should not buy unless you at least have the option to pay cash. Cash saved outside of tax advantaged space. Only then should you be looking at new cars in that price range

Also, please keep in mind that with all of the constant changes happening in medicine these days, there is no guarantee you will like your new job or even your career choice for that matter. So the wisest thing you can do right now is save as much as possible for at least a few years until you have a better idea of what the future holds in relation to your career. At that point you should have maxed out your 401k, HSA, backdoor Roths, and 529s for at least a few years and been able to put some cash into your taxable brokerage account too. IF at that point you want to part with $60k for a car, go right ahead. My suspicion is you may have second thoughts and go with something cheaper. Or maybe not and that’s fine too. But at least you’ll have learned the importance of saving aggressively early on and will have cemented those good habits into place. Best of luck!