Tag Archives: BMWs

Who would you admire more?

8 Apr

Recently, I borrowed “Millionaire Teacher” by Andrew Hallam from the library.  I literally read the first few pages.  I have a very short expansion span, but I will try to finish this book by the due date!

Andrew Hallam made a very good point on perception about owning a car which is a depreciating asset.  In his findings, most people who buy luxury cars are not actually millionaires.  Most millionaires buy a Toyata!

Who would you admire more?

Hypothetical Scenario:

Mr. Hotshot and Mr. Frugal both makes the same amount each year.  Both of them needs to buy a car to travel to work.

1.  Mr. Hotshot buys a brand new Lexus IS 350 for $45,000.

2.  Mr. Frugal buys a brand new Toyota Matrix for $20,000.

Both of them show up to work with their new cars.  Their coworkers goes out to the parking lot to check the two cars out.  Everyone is admiring the Lexus IS 350 over the Matrix and Mr. Hotshot gets excited from all the attention and questions from his coworkers.  Mr. Frugal steps back and smiles to himself.

But who do you think will have more money down the road?

Of course, Mr. Frugal.  Right off the bat, he saved $25,000 of his own money by not buying a more expensive car.  He has bigger plans for his money down the road that will eventually multiply over time.

Personally, I do admire nice cars myself.  Who doesn’t?  Does that mean I can afford one?  Right now, I can if I wanted to squander all my savings!  But I choose not to go out on a limb to lease or finance an expensive luxurious car.  I will spend my money wisely elsewhere.

Some of my BF’s friends have brand new BMWs and Mercedes.  Do I admire them…?

Dash Cam Crashes (Accidents can happen in an instant, so why bother with a nice car!)