Call Me Crazy, But…
Isn’t every normal person supposed to think long term financially when he or she reaches a certain age (in this case pass 25)?
The other day I heard about this guy who has worked for the past couple of years with one goal in mind and one goal only: to buy a Mitsubishi Lancer Evolution. He made a $10,000 down payment and is going to pay about $600 a month for the next 5 or 6 years.
He’s in his late twenties (just like myself). I’m struggling to get out of debt (that I got in when I was young and stupid - and not because this kind of extravaganzas) and come up with some sort of a plan for the future that would, at least, insure my children have a comfortable future. And here’s this guy, who, I strongly believe, should think about the same way, indulging himself in buying a brand new forty-something thousand dollars car on which he lost at least five grands once he drove it out of the dealership.
I wish him all the luck. And it seems he’s going to need a lot of it, as he’s quite upside down in this matter. He just bought the car and got himself in trouble.
Here’s the story. It seems as if these models are hot cakes for car thieves. The first night he bought it he went to a club, ironically, attended by some of those thieves. In the neighborhood was a police patrol. The cops were aware of the type of people who go to that club, and even more ironically, they were actually looking for a stolen Lancer just like my guy’s. When they saw “my friend” arriving, they did their job and gave him a hard time suspecting that was the Lancer they were looking for and him to be involved. Eventually they let him go.
Even though this story has nothing to do with what I’m trying to point out here I decided it was worth telling it.
So what am I trying to say?
I know it’s popular to “live your life” and stuff. I do it too. But within certain limits. Is it worth doing it at such a huge expense? At the expense of your financial future? At the expense of your children’s well being? I strongly believe the answer is no.
I know I may sound old fashioned, boring, that I don’t know how to live my life etc. I’m not really like that. But I believe in setting limits and understanding when something is off those limits and accept the situation. Believe me, I would love to drive a hundred-something thousand dollars car (there’s plenty of them out there I would love). And if I would stretch my finances really good, I probably could afford one. But at what expense? At the expense of endangering my financial future? Because, unless we’re millionaires, that’s the result.
Just think about it: In a couple of years, that car will most likely be worth about half its value. Nicer and more sophisticated ones will get on the market. For a middle class guy, it will be impossible to keep up the pace. And by the time you’re done paying it, it’ll probably be worth a few thousand bucks. It’ll be just a regular car. For the period of your installment, considering the payments, insurance and maintenance for such a car, you won’t be able to save much (if anything). You’ll wake up in your early thirties with no savings and (by now) an average 5-6 years old car.
But hey, you lived your life. I ask again: at what expense?
Am I jealous? Trust me I’m not. Not when I think of the price he’s going to pay. My 2004 Chevy Cavalier runs just fine. Takes me where I want to go. But I know I’ll be somwhere when this guy will probably just start realizing the situation he’s in.
Am I judgemental? Maybe. But how can I not be when I saw so many others do the same thing and afterwrds banged their heads against the wall for being stupid about it.
Is it none of my business? Most likely. But then again, I was actually just wondering if I’m out dated, old fashioned, boring, plain crazy or not, and if others see such issues the same way I do.
Honestly, I wish him good luck and I trully hope he’ll find some way of getting himself out of this. I know the guy. And believe me when I tell you the income he has right now won’t allow him to accomplish much as long as he’s paying for that car.
