Fighting an internal conflict between desire and necessity.
I’m approaching 30 and have always lived pretty frugally with the occasional once a year splurge on something I like (<$10k). I have a small humble 6 year old car (owned) that I use daily. I make 190k pre-tax annually and have 300k in savings. I have no debts or liability and I don’t own a house but it isn’t on the top of my priority list for at least the next few years.
If I continue this trajectory, I’m certain I can save up even more. But here’s where I’m torn because maybe it’s lifestyle creep but I really would like to finally get my dream car or an upgrade. It would still be a used car but I’m looking at a $100-$150k out of pocket. Not going to dive too deep into why I want it but it will make me happy driving it and I’ve been working hard to make money.
I’m aware getting a luxury car will mean even more expenses (maintenance, expensive petrol and insurance etc), my expenses will increase which means less savings and my frugal mind just thinks – “why be paying more?” And if we look at pure necessity, there is absolutely no need for a luxury car as my current car works just fine.
Let’s get straight to the point: dropping $100,000–$150,000 on a car right now would be a terrible financial move. Not because you can’t afford it, but because the opportunity cost is staggering. That money has so much more potential to grow if you invest it wisely instead of sinking it into something that will lose value the second you drive it off the lot.
Think about it. Cars are depreciating assets. That luxury car? In five years, it’ll be worth a fraction of what you paid, but that same money invested in the market could be worth exponentially more. You’re not just spending $100,000; you’re giving up the future growth of that money. And in your early 30s, your greatest financial asset is time—time for your money to compound and create wealth.
Here’s the reality: You’re in a phenomenal position. You make $190,000 a year, you’ve saved $300,000, and you have no debt. But this isn’t just about whether you can afford the car—it’s about whether you should. That money could be the down payment on a home that appreciates in value, or it could stay in your portfolio, where it works for you every single day.
I get it—you’ve worked hard, and you want to reward yourself. But here’s the thing: financial success is about playing the long game, not indulging every impulse just because you can. A car might feel like a win in the short term, but long-term wealth comes from making smart decisions consistently.
So, ask yourself: Do you want a car that loses value, or do you want financial freedom and flexibility down the road? Because those $150,000 dollars could be the foundation for something far bigger than a luxury vehicle. Think bigger. Plan smarter. And save the dream car for when you’re in a position where it won’t even register as a financial decision—it’ll just be an afterthought.