[BimmerNugget]

Hi M3 owners,

After viewing that "what do you do for a living thread", I'm just wondering if there are any accountants on here, specifically CPAs.

I'm currently a senior undergrad at a top tier state school accounting program. I bought my first BMW (E90 328i) at 21 with money from my own fragrance business. I paid 100% cash for it. My dream is have a 750i and an M3 in my garage.

Since i'm graduating soon, I was thinking that if I can land an entry level accounting job at a midsize regional firm in the Northeast, I might reward myself with a CPO M3.

Is this realistic? I have about $44,XXX cash saved up from my business. and another $12,XXX cash that I constantly use revolving through my business.

Is it wise to buy an M3 at this age (22-23).

[Aaaaaaaaa]

Not in finance but surely $44k can be used instead to go towards:
- growing your business
- retirement
- downpayment on house
- funding a HSA
- funding a taxable investing account
- emergency fund
- future life events (wedding, kids etc)

But like I said I?m not in finance so eff it just do it.

[RickFLM4]

Yes, I'm a CPA. Few years Big 4 followed by 7 at a small public company, first in financial reporting, then controller, then moved over to corp development and marketing and finally back to finance as CFO. I've been on my own for the last 17 years as a consultant.

You have far more cash saved than I did when I got started. I had none, or actually negative if counting student loans. (Good for you!) So an expensive car was nowhere on my radar when I first got out of school. I was reasonably happy with my beige Oldsmobile Cutlass Calais.

Personally, I'd save that money rather than spending it on a car. An investment in real estate or even a simple stock market index fund will be more valuable to you in the long run. Ultimately, I think you can figure out the answer to your question yourself by weighing short- and long-term priorities.

Separately, I'd also say try to get into Big 4 rather than regional. Work can be grueling but it will result in far more opportunities within and outside the firm, in the short- and long-term.

[///M-er-gized]

You really should be seeking advice from a CFP (certified financial advisor) and not necessarily a CPA although many CFPs are CPAs too.

I'm neither. I majored in computer science, but I certainly have done well managing my personal finances and often give advice to young college graduates (I actually have 1 kid that is a young college graduate; the other is still in school).

You're not going to like what I tell you, but my recommendation would be to invest or save that money, and settle for something like a VW GTI for now.

Also, virtually every CFP or CPA will tell you the same thing.

[gatorfast]

CPA here. Started in public accounting and moved to private industry after a few years.

As everyone else has said, I would def not be looking to buy a CPO M3 right away. Unless something has changed drastically, starting salaries for a first year associate out of college are not M3 level and would certainly be a stretch. Also, if you are going the audit route you will likely be putting on some miles as you travel to clients in your area and a less expensive and more fuel efficient car is much better for that.

Good luck!

[Super Spartan]

Originally Posted by BimmerNugget

Hi M3 owners,

After viewing that "what do you do for a living thread", I'm just wondering if there are any accountants on here, specifically CPAs.

I'm currently a senior undergrad at a top tier state school accounting program. I bought my first BMW (E90 328i) at 21 with money from my own fragrance business. I paid 100% cash for it. My dream is have a 750i and an M3 in my garage.

Since i'm graduating soon, I was thinking that if I can land an entry level accounting job at a midsize regional firm in the Northeast, I might reward myself with a CPO M3.

Is this realistic? I have about $44,XXX cash saved up from my business. and another $12,XXX cash that I constantly use revolving through my business.

Is it wise to buy an M3 at this age (22-23).

the wise choice is to buy the car you want when it is barely 10-20% of your net worth so it wouldn't affect you...

because i you spend all your money on the car, despite how much you like it...what if it rains one day? and it WILL rain...then you're left with nothing...

make the wise choice until the right time comes.

Heck if you invest the money you have now, in a few years you can probably buy the car you want and it wouldn't even affect your wallet.

Just my 2 cents worth.

[GrussGott]

Originally Posted by BimmerNugget

Is this realistic? I have about $44,XXX cash saved up from my business. and another $12,XXX cash that I constantly use revolving through my business.

Is it wise to buy an M3 at this age (22-23).

Nobody agrees with me , but you have to take the sum total of your desired yearly spend in hobbies and then have 10x that amount in savings/liquid investments.

So, for example, if you want to spend ~$1500/month (say $20K/yr) on a "fun" car, golf, etc, then you need roughly $200K in savings (and, of course, you have to continue funding yourself in savings and paying all your other bills).

That would mean, given your savings and assuming you're paying all your other bills including savings contribution, you can afford about $350/mo in hobbies.

So, if after paying all your other bills (including 20% of income to savings), you still have $350/mo, then get a nice CPO something that fits that budget.

Here's the genius that WILL make you a millionaire if you follow it (which means you'll completely ignore it):
Use your savings as a measure of what you can afford, NOT YOUR INCOME.

[Nicky_do_it]

Passed CPA exam but not certified. I am also am a CFA charterholder. Just sharing should either count.

It's difficult to answer your question without knowing more info like expected total income, current net worth and future objectives.

I waited until I was debt free and comfortable with my income level. You may not want to wait that long. Therefore, I say wait until you establish yourself in your profession. At a minimum, I would wait until you pass the CPA exam then reward yourself.

[stevenc]

Originally Posted by BimmerNugget

Hi M3 owners,

After viewing that "what do you do for a living thread", I'm just wondering if there are any accountants on here, specifically CPAs.

I'm currently a senior undergrad at a top tier state school accounting program. I bought my first BMW (E90 328i) at 21 with money from my own fragrance business. I paid 100% cash for it. My dream is have a 750i and an M3 in my garage.

Since i'm graduating soon, I was thinking that if I can land an entry level accounting job at a midsize regional firm in the Northeast, I might reward myself with a CPO M3.

Is this realistic? I have about $44,XXX cash saved up from my business. and another $12,XXX cash that I constantly use revolving through my business.

Is it wise to buy an M3 at this age (22-23).

I'm a CPA. 15 years with a regional firm. Now managing partner.

If you don't have any serious debt and once you land a good job, go wild and buy the M. You have savings and you worked hard and are ready for the reward.

Then start working your long term plan.

[gatorfast]

Originally Posted by stevenc

I'm a CPA. 15 years with a regional firm. Now managing partner.

If you don't have any serious debt and once you land a good job, go wild and buy the M. You have savings and you worked hard and are ready for the reward.

Then start working your long term plan.

As the managing partner of your firm you would advise a first year associate fresh out of college that just started working for you to buy an expensive German sports car?

Perhaps someone like you, 15 years into your career, can reward the fruits of your labor with a fancy car. But a kid just entering the work force??

[bing240sx]

CPA here.

just hustle your ass off and you'll be fine but know that not everything can be broken down into math.

don't forget about starting a family.

cars are perks, not goals.

[seedyrom]

Rewarding yourself at 22 for getting an entry level job?

You are peaking too early.




Of course, there might be the possibility that your parents are going to buy you a house etc, so you might not have large goals that are better to aim for. In which case, I wouldn’t be big upping myself about a car purchase.

[Aust350z]

CA here. Waited 15 years to treat myself to the M. Lots more things to invest in early to make the car perk cheaper later on.

Noting wrong with a second-hand, well-maintained, low km M235i to get to work in as an early reward.

[BimmerNugget]

Originally Posted by seedyrom

Rewarding yourself at 22 for getting an entry level job?

You are peaking too early.




Of course, there might be the possibility that your parents are going to buy you a house etc, so you might not have large goals that are better to aim for. In which case, I wouldn’t be big upping myself about a car purchase.

I'm rewarding myself for 3 reasons...

1) For my business accomplishments, I mean what 21 year has 44k cash tucked away in a credit union? Another 12k or so in inventory and revolving cash. As a matter of fact, it's 2:26AM in NY and I'm packing shipments for dispatch tomorrow. I also have an advanced financial accounting exam Tuesday.

2) For passing CPA

3) For actually landing an accounting job, even if it's entry level. I plan on going into the Tax route, and possibly going for my J.D. in 2 years or so.

*also FYI...I do not come from a wealthy family. My father's a livery cab driver in NYC, my mother works as a hotel maid. Growing up, all I ever wanted was a BMW but all we had was a 1999 Toyota Sienna. We still have that car btw, and it still runs smooth as hell.

EVERY SINGLE THING THAT I HAVE, I MADE IT MYSELF....ZERO HELP.

[BimmerNugget]

Originally Posted by bing240sx

cars are perks, not goals.

I like that

[seedyrom]

Originally Posted by BimmerNugget

I'm rewarding myself for 3 reasons...

1) For my business accomplishments, I mean what 21 year has 44k cash tucked away in a credit union? Another 12k or so in inventory and revolving cash. As a matter of fact, it's 2:26AM in NY and I'm packing shipments for dispatch tomorrow. I also have an advanced financial accounting exam Tuesday.

2) For passing CPA

3) For actually landing an accounting job, even if it's entry level. I plan on going into the Tax route, and possibly going for my J.D. in 2 years or so.

*also FYI...I do not come from a wealthy family. My father's a livery cab driver in NYC, my mother works as a hotel maid. Growing up, all I ever wanted was a BMW but all we had was a 1999 Toyota Sienna. We still have that car btw, and it still runs smooth as hell.

EVERY SINGLE THING THAT I HAVE, I MADE IT MYSELF....ZERO HELP.

That’s great. But at that age, plowing your cash into a depreciating asset is fucking stupid.

[seedyrom]

Originally Posted by Aust350z

CA here. Waited 15 years to treat myself to the M. Lots more things to invest in early to make the car perk cheaper later on.

And this is why in finance circles the phrase “he’s good, but he’s only a CPA” is common.

[eluded]

Originally Posted by BimmerNugget

Is it wise to buy an M3 at this age (22-23).

Unless you have other assets you have not listed in your thread, I would say no. Buy a house or two

[seedyrom]

Originally Posted by BimmerNugget

I'm rewarding myself for 3 reasons...

1) For my business accomplishments, I mean what 21 year has 44k cash tucked away in a credit union?

Obviously you are the only one



When the article below was written, I was 22, so it’s comparable to you.
I drove old, second hand cars up until 2 months ago when I bought my first ever new car as a 40th birthday present.
There’s some good advice below, but none of it involves blowing all your cash on a car.

[Aust350z]

Originally Posted by seedyrom

When the article below was written...

You had to bring up T2 didn't you....

[RickFLM4]

Originally Posted by BimmerNugget

I'm rewarding myself for 3 reasons...

1) For my business accomplishments, I mean what 21 year has 44k cash tucked away in a credit union? Another 12k or so in inventory and revolving cash. As a matter of fact, it's 2:26AM in NY and I'm packing shipments for dispatch tomorrow. I also have an advanced financial accounting exam Tuesday.

2) For passing CPA

3) For actually landing an accounting job, even if it's entry level. I plan on going into the Tax route, and possibly going for my J.D. in 2 years or so.

*also FYI...I do not come from a wealthy family. My father's a livery cab driver in NYC, my mother works as a hotel maid. Growing up, all I ever wanted was a BMW but all we had was a 1999 Toyota Sienna. We still have that car btw, and it still runs smooth as hell.

EVERY SINGLE THING THAT I HAVE, I MADE IT MYSELF....ZERO HELP.

2 and 3 (minus JD) are something every CPA who works in a firm achieve and few go out and buy an M as a result. (Maybe a new suit or two...) In fact if you do decide to pursue your JD that is a liquidity need for which you should be planning. Having money saved from a business is great. Really great. It just doesn't make sense to me to plow it into a car instead of investing for the future.

Ultimately that last post seems to indicate you already made up your mind so not sure why the need for the thread as responses should be predictable.

[rcracin]

Start working, finance a used m3 around that costs somewhere around 30-40k and you'll be fine. Used rates are like 2% these days. Makes no sense to buy a car cash with rates that low.

I don't see the point in waiting until you're 30+ to enjoy a nice car. Life is too short. Spending money on a depreciating asset doesn't make you stupid if you're happy and everything else in your life is going according to plan.