Updated: Jun 27
The other day, I was unhappily browsing across Facebook and seeing one of my clever friends writing a
crazy story about the incredible Toronto Raptors basketball player who only drives a
20-year-old beater SUV after earning over $100 million.
He said of the car: “It’s working … so it’s paying off.”
The second element of the statement is key. Nothing might be greater
than a paid out vehicle. There is no annual charge, so a good portion of the deterioration has already occurred. You operate for cash.
I would admit I am not as organized as Kawhi Leonard, either. I had my last car for seven years and about 135,000 miles when I got a hankering for the smell of a new car. Anyway, Leonard ‘s level of frugality is rarely seen in the NBA — or, for that matter, anywhere in
I had a classmate of mine who played hoops in college and made it to the NBA. He said the players should purchase a new suit for each day they were on the path. Forty-one games on the road, with 41 suits. They ‘d wear it once, then never wear it again. These were tailor-made suits, not off the rack, given the size of the basketball players. That is about $100,000 worth of suits, Conservatively. One year. Then it goes like this. I am attempting to give readers a relatively big dose of insight in my personal-finance tales. Three dollars each day on coffee is a luxury you can afford, and people seem to have an easier time to give up big luxuries than small luxuries.seem to have an easier time to give up big luxuries than small luxuries.
Most people would prefer to drive a piece of crap car rather than give up coffee in the
morning. Tell people to give up coffee (as is the case with Suze Orman) and you will
alienate those people that you are trying to help. So, don’t buy 41 suits a year for
starters. Yet don’t buy a 10 percent juice a day, no. And don’t go out three times a week to eat them.
And when you’re traveling do not stay in $300-$400 hotels. All simple stuff.
But the best way to save money is to drive a piece of shit vehicle, by hands down.
Unless you drive a Ferrari Ride, a vehicle is not an expenditure +0.72 percent. A car is pretty much a huge waste of money. Where else would you, in seven years, take $40,000 and set it on fire? And pay the bank a bundle of interest in the process?
What a tragedy. Funny thing about vehicles the egos of people get always wrapped up with the car’s logo. People like saying they are driving a “Benz” or a “Beamer.” Puke. I’m driving a Toyota TM, 0.35%. They never break, and they last forever. They are a perfect vehicle to drive and is being paid for. The other day I saw something I’d never thought I ‘d see. A white Lambo — parked outside the Myrtle Beach Office of Social Welfare. My colleague and I were staking things out to see who was the boss.
A 90-year-old guy walked out of the Social Security office and climbed into the vehicle, reviving the engine as others were taking photos. If you are 90, I think you will have a green Lambo. With no one involved in Myrtle Beach; everything makes sense. I also spend a lot of time in Miami Beach, a city where a Porsche is like a Honda HMC, -1.11%. I get the sense that there are literally no other possessions for a lot of people who own those cars? It always boils down to expectations.
The takeaway here is that not a million small decisions produce your financial well-being, but two or three big decisions. A vehicle will render you bankrupt. Or you may get helpless watching as it gets towed off your driveway. Then don’t get me going on lending, the expanded car financing pledge.
I’ve had talks with car salesmen. They all say the same thing: “I can get you in the car.” They ‘re pretty creative, financially speaking, and they’re going to find some way to make the sale, even if it puts you in a dangerous financial situation.
That is not what they are concerned about. Their preoccupation is to sell cars.
The ideal scenario: Get a Toyota gently used, pay cash, drive it forever.
You claim the game of personal finance. Before you purchase a new Beamer or a Benz, you will have $1 million.