Should I upgrade?

[prowakeskater]

this is more of a financial question, wanted to get some peoples opinions as I'm not the best with spending

bought my first boat mid last year and LOVE it. 03 sante.


stumbled upon a nearby 17 G21 that is absolutely wicked. coastal edition and the color I want, for 120k


Sorta just started making ok money. Been self employed for a few years now so I have no real job security, but I have a quarter mil saved and thats after a healthy spending habit- last year buying said SANTE and a GTR.

im pacing to make about 45k this month before taxes.... but I'm not yet a home owner and I'm planning to be after taxes next year. I'm 30.


should I keep saving and just enjoy my 210? or should I say **** it and live?

[sfjakey]

Buy a house and enjoy the boat you have. Buy the same G21 in 4-5 years for 65k and sell the 03 for probably what you paid for it.

[Chris5084]

You have pm.


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[markj]

Ahh. You got da hot money. Da kind dat burn da hole quick in yo pocket. Ever wonder how pro athletes manage to go broke?..... hmm....

[charlesml3]

this is more of a financial question

You should be consulting with a financial adviser regarding matters like this. Asking here is NOT the right place for this.

[Blamey]

You should be consulting with a financial adviser regarding matters like this. Asking here is NOT the right place for this.

This is good advice. You need a plan. You need goals and you need to figure out how to get there. You become rich by being smart with your money not by making a lot of it. Most Millionaires are driving around in Honda Civics. My parents were making your kind of money in their early 30's and by the time they were 50 they had pretty much nothing to their name. They do well for themselves but could've retired twice over if they were better with their money.

We really don't know enough about you to be able to make this decision for you but based on what you have said, I'd say no, you can't afford it. 45K this month is great but is that at all consistent? 45K every month for the next 10 years, then yeah. you can afford it.

Quarter Mil saved - By 30 that's great but you shouldn't be spending half this on a boat, that's going to decrease in value real quick. I'd want 1 mil in the bank before starting to think about buying 100k toys.

[Nautique Fan]

I agree with talking to an advisor. Since you are only 30, money wisely invested now will have time to grow into a nice amount. Getting into a home sooner than later will also let you start gaining home equity. I have a 2007 and although I love all the new innovations that come on the new boats, for me it's about the right balance of saving, investing, and then playing. You never know what is going to happen tomorrow. Make it easy on your future self.


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[surroundsound64]

No boat

[DaveNH]

Well, I agree with talking to an advisor about how to handle money, investment, and plan for the rest of your life. But I think the group here is qualified to answer your question. Absolutely DO NOT blow half your savings on an almost new boat that will lose half it's value over the next few years. Incredibly bad use of money at this stage of your life and earnings.

If the '03 SANTE (which you said you LOVE) isn't quite what you need, then upgrade by a few years, maybe spend $10,000 over the sale value of the '03, then you are making a buy that fits into your financial situation and won't lose much value over the next few years.

[prowakeskater]

perhaps I should note that the quarter mil has been saved over the last year

and the 45k SHOULD be consistent now, after having diversified my sales considerably and STILL having huge room to scale up. And although last year I was not able to sell much during holiday season due to a problem, holiday season (November and December) usually accounts for 50-75% of the whole years sales, bringing a real possibility of a 7 figure profit for 2017

What price would you all put on enjoying a G for a few years or even more?


I don't think it would be wise to drop half of my savings for sure, but I'm sure I could secure a loan.... as having capital in my line of work is more important than pinching pennies wherever possible

[DaveNH]

Using half your savings is exactly the same thing as using a loan. Same value taken away from you.

Listen, if you earn $500,000/year you can afford any boat you want. But, you've done it for part of a year. How come you didn't earn that much in the 5 years previous? What guarantees that you'll earn that for the next 5 years? I've been running businesses for 30 years and even at this stage, at age 55, I can tell you exactly what I earned last year, but can't predict what I'll earn next year. Life has it's way of changing plans on you. Be conservative, you'll be happy you did!

Enjoy a G 5 years from now.

[jjackkrash]

Pop for the G. And finance it if you can still get a great rate. If sh*t goes south for you personally, sell the G. If the whole economy tanks, then you can walk away from it and hand it back to the bank. There's no reason to carry lots of equity in a depreciating asset if interest rates are low.

Or, switch to three-event, slalom, trick, and jump, and pick up a brand new SN 200. Then you get a brand new boat for half the cost and participate in a better sport. (I kid, I kid.)

[jjackkrash]

Using half your savings is exactly the same thing as using a loan.

I disagree with this. A secured loan let's you walk away from the asset if you have to and preserves cash.

[DaveNH]

Jack, you aren't seriously advising a young guy that leveraging an asset and later walking away, giving it to the bank, defaulting on the loan, is a good plan? Sorry, I think you are giving him awful advice.

[prowakeskater]

I viewed that as a worst case scenario, which is not very likely.