We all like nice things, everyone likes nice things but what does it cost?
No…I don’t mean cost as in the price, I mean the cost of keeping it; the maintenance, interest payments, stress, freedom…yes, freedom.
For example, let’s say after your rent/mortgage, utilities, insurance, food, gas, and entertainment expenses per month you have $1000.00 left. That’s kinda high but whatever.
You have roughly 12,000.00(12k) a year in fun money, that’s assuming you save 10% have retirement and are doing all the things we’re supposed to do. You can go out on a few dates, go to Martha’s Vineyard, travel to Africa, a couple of black ski events, etc. Then you see it, that Z07 Corvette, for a easy $350.00 a month. Why not?!…you have the money and good credit for no down payment. Bang, it’s yours…it’s fun to drive, you increase your gas costs for 93 octane premium gas but you can swing it. Insurance goes up and depending on how you drive, those ultra performance tires at $400.00…EACH are nothing to forget. Yes $400.00 look it up, http://www.tirerack.com. Yeah you buy tires once over 2 years but it still a expense. So $350.00 car payment, increased gas and insurance cost, before you know it, your fun money has dwindled to about $550.00 a month. Yes, you can still pick up some airline tickets, and hang out but with a little less money, no problem. Then you see it…the Rolex watch, better yet the Breitling watch. How much? $4k, that’s $4,000.00 for something you DON’T need, you want it but you don’t need it. Yes, it’s a nice performance luxury watch but your cell phone can tell the damn time?! Next thing you know, it’s on your wrist with what…No Money Down, for 18 months then it’s 24% interest if you don’t pay it off.
INTEREST – n. money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt
So your payment is $222.00 a month, that’s not to bad but just think, we started with $1000.00 a month spending money
– $350.00 Corvette payment
– $222.00 Breitling watch
= $428.00 a month
$400.00 is still not bad but that’s just two purchases for things you DON’T need. You want a $4000.00 watch and your furniture isn’t even paid for yet. You can’t even take your mom on a cruise, take time off from work, you got bills to pay! Now you’re starting the cycle of debt, you can’t even drive the Vette cause you gotta eat and make a living….there’s no traveling, no playing, get your a$$ to work SLAVE!
And that’s my point, be discipline enough to NOT buy things you don’t need. It can wait, your freedom is more important.
No…I’m not saying don’t buy nice things. Just think, if you wait one year, you could have at lease 10k in the bank. With 10k in the bank your stress level is different, you travel more, you can buy the watch straight out and get a decent car until you can afford the Vette. If something goes wrong at work, hours get cut, laid off, you have a few months to fall back…this is what you call saving money for a “rainy day”.
Most of us can buy anything we want, but we can’t afford the lifestyle that comes with it.
I forgot the reason why I wrote this blog…
I saw a Range Rover, I love Range Rovers, I purchased one a couple years ago. My friend Terry told me not to buy it…I didn’t listen…warned me about that maintenance…I didn’t listen…told me it was a piece of s#!&…I didn’t listen. I bought it for about 10k, it was used and old but I loved it…classic. I spent about 7k on repairs in that year. It is a horrible car…loved the ride, nothing like it but that air suspension cost money to repair. It was a 20k lesson in about 15 months. I should have listened. This was all before God blessed me with rain on my commute and someone rear-ended me and totaled it…wooo hooo! Got a pickup truck and left it at that. So take it from me.
Homework: Look up the terms; depreciation, interest rate, credit score, net worth
“Money buys many things…the Best of which is Freedom” Mary Renault
“The only thing money is good for is to buy your Freedom” Humphrey Bogart
“Money equals Freedom” Kevin O’Leary (Shark Tank: Shark)
“I have a fantastic relationship with money, I use it to buy my freedom”
2 responses to “Buying your slavery.”
Excellent post, Brother and, just in time for the holiday season! Thank you for always reminding me of what is important.
Excellent post, Brother and, right on time for the holiday season! Thank you for always keeping me on my toes and, for reminding me of what’s really important.