When it comes to cars, people can blow more money than a newly signed NBA player or first round pick of the NFL draft.
It was recently reported that Americans are spending $18,000 a year on non-essentials. Which makes it pretty hard to stack those Benjamins; and even harder to be saying stuff like Drake and Lil Baby : Got M’s in the bank, like: “Yes, indeed.”
I have found that either you can be rich or act rich; you cannot be both.
However, don’t feel bad. Lots of people take years to learn that lesson. That is why this latest post is going to be a two-parter. 😉
See my post Catwalking To Get Paid: Modeling Is Risky Business
So don’t drop that top just yet playboy or playgirl, cause we’re equal opportunity like that here, because we’ll be right back later with part two of this post.
As soon as Springtime hits, more people are lining up at the convertible dealership faster than Punxsutawney Phil can make his prediction and see his shadow.
People are blowing major dough on their rides. If you are old enough to remember the MTV show Pimp My Ride, then you know its serious out here in these streets. $5,000 rims? You know it. Got to have that tint too? No problem. $2,000. Custom sound system? It will only set you back $8,000. And have to be like Three-Six Mafia and Stay Fly in the new whip by dropping $2,500 for a new pair of tennis shoes, $250 for Illesteva sunglasses, and $700 for new gear.
A new BMW can run you $40,000 and fully loaded could cost you over $100,000! Why not invest that money you say? The problem with investing in stocks and bonds is they’re boring as hell. A boss turns their garage into a Bentley dealership, stockpiles platinum Rolex watches, collects houses like chess pieces, turns their closets into a fashion house, collects $500 shoes like monopoly pieces, and opens up nightclubs. Got it, nerd? So light a Cuban cigar with a hundred dollar bill, pour your most expensive champagne in that crystal glass and put your feet up on a diamond-encrusted ottoman as Greenbacks Magnet presents Beamers, Benz, and Bentleys or a GMC Truck?
See my posts on Shoe Game Is Not For The Frugal At Heart and Introducing The $100,000 Bottle Of Water
THE PRICE OF LUXURY All things come with a price tag. Food. Water. Houses. But when it comes to cars, people are willing to drop some serious coin. I’m talking enough to put down a 10-20 percent down payment on a half a million-dollar home.
Remember cars are now coming more high-tech; like Lil Baby says, “Brand new whip got no keys.”
So what is the price of all this luxury?
Let’s take a peek.
For goodness’ sake, a GMC truck will run you $20,000-$30,000. Buy a decent quality car one-time and you’re done for like a decade!
When you have to start putting gas and groceries on plastic, then you are in some serious trouble.
If you can drop $75,000 on a new S-Class Mercedes-Benz, but your credit card gets denied while in the drive thru for a double-cheeseburger, then you need to check your priorities at the door of the Range Rover dealership.
If you are only able to make the minimum payments on $55,000 of credit card debt, then at that rate it would take you over half a century to get back in the black. No one should stay in the red that long!
TURNING HEADS LIVING LARGE AND TAKING CHARGE If your theme song starts off like this, “rain drops drop top,” then you may be in trouble.
Trying to impress people with stuff usually leads you down to a life of misery and penury.
Personally, I have seen too many people get taken to the cleaners trying to impress family, friends, and acquaintances at stop lights for 20 seconds. That is a quick way to end up in bankruptcy court. Don’t believe me. Check out the NBA or NFL player’s union, stating that over half of NBA players are broke within five years of their retirement and even less for NFL ballers (there’s is three years).
I even read an article discussing how men that drive fancy sports cars are less likely to want long-term relationships! Is that why so many pro athletes owe millions in alimony and child support! Then show up in court crying and telling the judge they can’t afford payments like T.O. After making more M’s than the M&M’s can put on its candy, it’s hard to feel sorry for you. But we hear you out there. It’s hard out here for a pimp.
FINANCIAL DISASTER ON FOUR WHEELS I guess I don’t have to tell you that overspending on cars is dangerous. What I do not get is when I see people not bat an eye at paying $50,000 for a new car, but then loss their minds if they get overcharged $0.50 for an ice cream sundae (um, what?)
Pinching pennies on small items and dropping G’s on blackjack tables and designer car seats. That makes no sense.
You want to keep your fixed expenses low. That includes mortgages and cars. Why? So you can save and invest of course.
In order to try and retire early, it usually takes most folks saving 50% or more of their income.
Tough to do if you have to spend $3,000 every 3 months on repair bills at the BMW dealer. But because you are unwilling to negotiate at the farmers market or wait in line at Target or Costco, you spend like your life is made up of 75 hours instead of 75 years.
In order to avoid this fate myself, I paid off my car in 2009 and have not had another car note since! I then went from saving $1 a day to over $1,100 per month! I calculated that if I could save $13,333 a year, then I would have over $100,000 of cold hard cash within 8 years! And I would be that much closer to saying “Got M’s in the bank, Yes indeed!”
