If you were 25 years old how would you make the $ for a tesla

If you were 25 years old how would you make the $ for a tesla

I'm sure there are a few smart people here who have good enough judgment to attain great things such as the tesla.

I'm 25. All I have is a state college BA degree and liscense to sell health insurance.
I have the freedom to make some big moves right now but I have no mentors and I REALLY want to be started on the right track to own a house and a tesla in the next few years.

How did you do it? Thanks for the indulgence I know this is unusual post

SCCRENDO | 26. Mai 2016

Pretty broad question. Depends on how much you make, what your lifestyle is, are you planning on relocating, are you planning on marrying, what you are looking for in a car. If you plan on not moving for 5 years a home is a great investment. If you need a car the Model 3 becomes affordable with tax rebates, gas savings. Also you will be helping the environment

Ryablons | 26. Mai 2016

Explaining how u did it is a fine answer for me.. I plan on staying out of debt unless for a house.. not buying a car for more grand until I can finance a tesla. Kinda feel like I'll never get there with health ins at this rate..

Ryablons | 26. Mai 2016

Explaining how u did it is a fine answer for me.. I plan on staying out of debt unless for a house.. not buying a car for more grand until I can finance a tesla. Kinda feel like I'll never get there with health ins at this rate..

damien666 | 26. Mai 2016

1. make a separate account and transfer a fixed amount per month which doesn't hurt you too much and never take money out of it, at best never look at the balance to not get tempted to take some out of it
2. get one of those waterspender containers used at offices, the morning take the double amount of money you usually use on a daily basis, when you get home throw the money left into it and never touch it (I call this my emergerncy safe in german Notgroschen)
3. work hard do not spend it for silly things you don't need (like going to expensive parties on weekends :)
4. constantly try to educate more

warren_tran | 26. Mai 2016

For me, I will invest in the stock market and taxed on long term gain by the time I need to sell it for funding of Model 3.
I got a biotech stock that I'm awaiting FDA approval decision. I have about 90% confidence rate that it will get approve. If it does, I should be able to get $15k for down-payment.

UnshodBob | 26. Mai 2016

@thomasmartinelli - I think what you are calling a "waterspender container" may be a 5-gallon water cooler jug, like the water company called "Sparklets" uses here in the USA. It is clear plastic, used to be made of glass in the long-ago days, and will hold a massive amount of change. I suppose in Europe they are about 20 liter capacity, if the volume is similar to ours.

Bubba2000 | 27. Mai 2016

At your age, with limited means, I would not even think about a fancy car. Keep your expenses low, rainy day cars, max out a Roth IRA. If you want a M3 buy a used one. Meanwhile, I would drive a used reliable car like a Honda Civic.

SCCRENDO | 27. Mai 2016

@bubba. A model S may be ambitious for him but a base Model 3 could be very affordable. Depends on how much he earns etc.

Ryablons | 27. Mai 2016

Thanks for pragmatic responses. I like the structured saving techniques. I'm wondering if I should look at new careers.

vp09 | 27. Mai 2016

Ryablons, don't eat at restaurants. Prepare food at home. Take your lunch to work. Don't ever go to Starbucks. Don't buy new clothes. Do not get divorced. Work hard, work harder. Save all your money. Then you can pay cash for your Tesla.

vp09 | 27. Mai 2016

Cut back on beef, or eliminate it. Eliminate potato chips and garbage food from your life. Don't buy a car every few years. Turn off the lights when you are not using them. Hang your laundry on the clothesline. Ponder the fact that the money we Americans waste is more than the annual income of most people in the world.

vp09 | 27. Mai 2016

And don't take investment advice from anyone other than Warren Buffet.

SamO | 27. Mai 2016


A $35,000 automobile with very low cost of ownership and various tax incentives available make it less expensive than a Prius.

US Tax incentives: $7500 tax credit up to the amount you owe in Federal taxes. Various state incentives up to $4500. Solo HOV access and free Tolls. Some additional "road taxes" usually less than $100.

EU Tax incentives: Check your country. Norway, UK, France, Germany all have very rich incentives including no VAT, free parking, free toll roads etc.

Fuel: $5.00/fill up at home while you sleep. Supercharging and Destination Charging Network road trips free. (Tesla may charge an activation fee for Supercharging. Announcements forthcoming).

Warranty: 8 year unlimited drivetrain. 4 year 50K bumper to bumper warranty.

INTANGIBLES: Safety, autopilot, bio defense mode

Example: I live in California and would likely select, at minimum, autopilot, supercharging and biodefense. That would put me at ~$42,000.

Less $7500 Federal, $2500 CA State credit.

Net price $32,000.

Put $5000 down and finance $27,000 for $470/month.

I've found my paid off gas car can cost that much with fuel, maintenance and repairs.

SamO | 27. Mai 2016

Lease payment will likely be 10-20% less.

SCCRENDO | 27. Mai 2016

@Samo +1

warren_tran | 27. Mai 2016


based on your response, then nobody would invest in stocks. It's is investing at your own risk.

I just made $1k this morning on my rollover IRA on one of my biotech stock on $3k position that I bought 2 weeks ago. Don't bash unless you do it. Investing is not hard if you do your diligence and research. It is like a part time job. Don't just go out and buy stock like facebook or apple.

Ankit Mishra | 27. Mai 2016

I don't own a Tesla. But I will give advice regardless. You can't come up to a solution to a problem outside of your comfort zone such easily. You will need to think about the issue daily. Give a certain amount of time daily. Be consistent. Over a period of time the problem will start breaking down. But don't try too hard because it can damage consistency and consistency is one of most important things.

vp09 | 27. Mai 2016

Warrentt, I see your point and you are right. Congrats on your short term capital gain.

But you wouldn't advise a 25-year old to do that with his savings, would you, when we know he wants to save up to buy a Tesla in a year or two?

warren_tran | 27. Mai 2016

vp09 -
In honestly, I wish I would be more interest and put more time into the stock investing when I was younger. Think of when Google, facebook, Uber IPO. It wasn't that long ago.

It is an option of how to maximize his return on the money he save. Maybe biotech is a bit risky for him but he can definitely put toward something more stable such as Vanguard Dividend Growth Mutual fund or some REIT such as Stag, LXP that offer dividend 7%. That's better then socking money into a saving account that can give you less than .20% at most for any normal bank.

There are lot of investment source to do your research (investorhub, seeking alpha) . You have to use your judgement and see who are the real contributor that post good article and info to take advice from.

That's all from me on investment advice b/c everyone need to make their own risk assessment.

vp09 | 27. Mai 2016

Hi Warren,
Return on mutual funds is less than return on a randomly-selected basket of stocks. The Wall Street Journal years ago had someone throw darts at a page of the NYSE, and buy those stocks, and that method always outperformed mutual funds.
Maybe the fund you picked did better last year, or the last 2 years, but that's no guarantee of returns next year.
Yes Google, FB, Uber, Tesla-- all have grown remarkably. I made enough buying early with Amazon and Netlfix to pay for part of my house.
My investments back in 2001 in Energy Conversion Devices, FCEL, and a few others, not so much.
Every investor I know can eagerly tell of the investments that went well for them.
Like how I bought Intel with left-over student loan money. 10 shares at 46 3/4 and it split 2 for 1 the next year and then 2 for 1 a year or two later then 5 for 4 the year after that, and then I had to sell to pay for a divorce. My 10 shares at 46 3/4 went to 50 shares at 46 3/4. Hard to forget that.
But we're talking here about a 25-year old who wants to buy a car in a year or two. I think he would be better off putting his savings under his mattress than buying anything in the stock market. Just my opinion. Your mileage varies.

EcLectric | 27. Mai 2016


Find a job that you love so much that you would do it for free. Other good stuff will follow. If you don't know what that job is, then find a problem that you would like to solve. Find out who is trying to solve that problem and join them.

vp09 | 27. Mai 2016

A tip of the hat to EcLectric. He or she sees beyond the immediate.

Back to money. I would now want to go more conservative than putting the savings under the mattress.

Here's a news article from today: "By one measure, U.S. stocks are even more expensive than they were during the tech bubble of 2000. While price-to-earnings ratios, which can be manipulated by financial engineering, aren't at alarming levels, price-to-sales ratios indicate stocks are well beyond being merely fully priced, as the chart from Ned Davis Research below shows."

See rest at http://www.marketwatch (dot) com/story/by-this-measure-us-stocks-are-more-expensive-than-ever-2016-05-27?siteid=nwhpm

I have seen this before.

My advice would be to buy gold or silver bullion or circulated coin.

Stocks are up. Because of cheap money. That's soon to be over.

Rather than argue now, let's check back in one to two years.

Ross1 | 28. Mai 2016

1: Start an online banking business
2: Start an electric car business
3: Start a rocket business.

Common denominator?

Ross1 | 28. Mai 2016

Read Ashlee Vance's book about Musk, and see how he was sometimes destitute.

Bubba2000 | 28. Mai 2016

You got great ideas. I did a lot of that and money piled up. Real money came from investing in big mega trends. Mistakes from not exiting in time.

Biggest mistakes:
Got to know when to exit. Reduce position over time. Cut losers fast. Hurt me in 2000.
Was too busy with work and missed big tends in MSFT, INTC, CSCO, etc.
Could have converted my IRAs to Roth for peanuts even with a loan. Now tax rates went up, my bracket too. Going to hurt. Going to convert some though.
Biggest Mistake? Not spending a lot more and faster 15 years ago.

Read Peter Lynch books. Gorilla Game. I think market is pricey now. Want to reduce risk.

Gayatrikr | 28. Mai 2016

No stock market house always wins
Get a real estate license and sell ins and real estate
Look at cpo tesla website
If u r getting a ice its paying over time if u get tesla u r paying up front so get a tesla get a long term loan 84 or 96 months

vp09 | 28. Mai 2016

Thanks Bubba.
I've not read Peter Lynch. Is he known as the management guru?
A lot of people were hurt in 2000. I bought some stock in summer 2000. NASDAQ around what, 5000?
Then down to 2000.
What do you mean about not spending more and faster, around 2001?

Bubba2000 | 29. Mai 2016

Peter Lynch was the Fidelity Magellan Fund manager until 1987. He racked 30% per year for years till he retired.

I was fortunate to realize that Oct-17-1998, the market had bottomed out. Took 111k and invested in Qcom, Dish, unph, etc with leverage. Made 100x in 17 mo. Did not realize that the market had topped. Too slow to exit. Lost 80% after 9-11. Taxes took a chunk after that. Should cashed out earlier and hit the road, travel, move to Monte Carlo! Was single too. Have done ok since then, not the same. Time lost.

vp09 | 29. Mai 2016

Bubba, what a story! I've heard it is impossible to time the market-- but you came close -- or were lucky. Sounds like you knew what you were doing. I took 150k in a home equity loan and put it into stocks after 9-11. It didn't make sense to me that the Dow dropped 30% because the Twin Towers went down. Qualcomm, for example, didn't have offices there-- Yet its stock dropped the same as companies who were directly hurt. Seemed like mass hysteria to sell off at that time--- so I bought. But no margining. Just money I could afford to lose.

I bought Sun and followed it down before 9/11. Early 2000, bad time to get in! I must have lost 80% on that one.

I'm guessing today is also a bad time to get in-- lots of cheap money driving up stock prices. I bought a Model S 90D yesterday and will buy the wife one next week-- I suspect that I won't be sorry in a year or two.

flight505 | 30. Mai 2016

I asked a millionaire the same question when I was 25. He told me to look at what the millionaires are doing and go out and do the same thing. These wealthy people will try to take you off that track, but don't listen to them. They don't want you doing what they are doing.

Here's an example. A friend of mine worked for an insurance company. The owners kept promising here that if she stayed in the business, they would pass it on to her. But, they never did. Finally, she quit and went out and started her own insurance company doing the same thing. She knew the business. Now, she is worth many millions.

So, look at the people in your business that are making money and go out and do the same thing they are doing. You'll win. One caveat is I'm not saying you can do this in a year or two.

thecatdad | 30. Mai 2016

Don't buy a house if you'd need to secure an amortized loan. Having to pay back 110% interest is ALWAYS a horrible investment. If you bought a $100k house and paid it off in 15/30 years, you'd have to sell it for over $200k just to break even. Unless you plan on getting an interest only loan and flipping the house within 45-60 days, your best investment is to buy a rundown house for $10k in need of vast repair and do it yourself. Otherwise - rent. With a lease that guarantees the landlord makes and pays for repairs. Then you can actually start saving money.

teslcls | 30. Mai 2016

marry a rich woman :-)

sp_tesla | 30. Mai 2016

Duplex or triplex is great 1st major investment, a very young couple I know are looking to buy 1st home with finish basement in NY/NJ area.

Ryablons | 31. Mai 2016

Great stuff guys, Thx.

vgupta0812 | 31. Mai 2016

Find things you're interested in and capitalize on it. Some of the things I did when younger to make some cash:
- flip cars - buy them cheap at auction, trade in, with some issue (needs a new engine/transmission, etc.), fix it up, get it state inspected, and sell it. You have to know cars to not get ripped off.
- write blogs on your interests- such as cars, PC equipment, TVs, etc. Whatever interests you can turn into money with the right advertising (such as amazon affiliates, google adwords, etc)
- do odd-jobs for people- helping people move, or you can get into fixing and detailing cars, building websites, and other misc. things.
- use online retail services to your advantage- ie: Rover (dog sitting), Turo (car rental), etc.
- insurance can be a lucrative career- get your P&C license, work to a 6, 63, 7, and go down that path - I know quite a few people that did and are wealthy beyond belief- one of them just purchased a brand new Huracan for cash- now that I'm envious of!

Doing the above can lead you down a path of being a successful business owner. Just be creative and it doesn't hurt to try things out. It often takes many failures before success.

All that being said, if you're 25 and can't afford it, a new car at ~$80k+ isn't really going down the right path.