Tricks of The Rich and Infamous

I think this is one of those "you either get it or you don't" scenarios. No one can explain why some people love the smell of new leather and others couldn't care less. I wouldn't have spent 1,000 cents on Edford, let alone $1,000. I've had people scold me because my kids went to private schools but they would happily go skiing in New Zealand or Colorado every year for a week at the "bargain price" of $15,000 for the family. After years of middle of the road cars, my husband leased a WRX last year and it was, indeed, a lovely ride. But the $825 a month lease payment really eats into serviceability and when the block of land at our retirement spot came up there was no contest - car gone, land bought. Me? I just continue to drive my phonemonally reliable 9 year old Daihatsu Charade with 170k on the clock (no smoke) but if it starts to cost me money I'll get another one that doesn't. (My husband still sobs quietly at night for his lost love when I go to bed.) We just decided that next time we'd pay cash, look after it and hang on to it for ten years (or until it blows smoke whichever comes first).

If you don't have the cash then the next best is probably the personal loan or the equity loan cos your properties will replace that equity in six or twelve months but those repayments on the lease for four or five years really chew up serviceability unless you are very high income.
 
well I guess its a question of balance, the rich often tend to buy nice cars from what I can see of it, but the amounts would be a very small % of their net worth.

The main mistake alot of people make is that car repayments are a big % of their salary, and they'd never be able to buy these cars with cash due to poor savings habits, so really they own cars they can barely afford, and it effects their ability to get investment loans. I would imagine many of these people wake up at 40 and realise that despite 20 years of work they aren't worth anything, its all been frittered away on toys.
 
I, for one, like nice cars. I enjoy the thrill of driving them, I appreciate their superb engineering, I like the smell and feel of leather, etc , etc. Driving a smoking old bomb is not for me; nor is driving a Holden or Falcon.

On the other hand, I don't go to the theatre, I don't go to the opera, I don't go to the movies, I don't go to the footy, the cricket, the races, the basketball, I don't hire videos, I don't go to restaurants, I don't smoke, I don't drink, I don't have sex, ...

OK. I drink and I have ....

Let me enjoy my pleasures and you enjoy yours. After all, LIFE IS FOR LIVING!!!!
 
Donna,

I would never lease a car without a company or business structure for the lease. To pay that much on a lease is madness without some form of tax and/or depreciation deductions for the vehicle, thats how the rich do it. I think they cant go out for breakfast with trying to make it a tax deduction and thats how i think these days. (but im not as anal about it as some - such as a mate of mine that wants taxi reciepts for every $5 or $6 taxi fare )

But i can understand the sacrifices people make for nice cars, most people i know cant understand my obsession with European cars - thats cool - i cant understand them not giving a stuff about driving around in a smoking beat, up 20 year old Commodore, different strokes for different blokes (or women) i say.
 
I havnt read the book, i have been told about it and it sounds like a load of $%&$^ to me.

I love how you focus on only one point in my posts and ignore the relevant bits. Duncan, You can get rich any way you like but to have the 'suffer so i may posses' mindset is ridiculous in this day and age of abundance and unlimited opportunity.

Buono Fortuna




Originally posted by duncan_m
Brains,

One thing to remember about "The Millionaire Next Door" is this, its a collection of facts, not a work of fiction like other wealth coaching books. It just examines the habits of the wealthy..

Its not possible to actually disagree with it.

But even though, you've still fundamentally missed some of its points.. the people studied in the Millionaire Next Door didnt drive Bangers like I do, they drive things like the US equivalent of newish (2-3yo) Commodores and Falcons.. I've read the book a couple of times.. I dont see anywhere in it either the suggestion or the fact that people live like paupers to achieve wealth..


When I'm filthy rich maybe I'll trade my $1500 ute up to a $7,000 ute.. whooah such decadence! :)

Duncan
 
Originally posted by brains
I havnt read the book, i have been told about it and it sounds like a load of $%&$^ to me.

I love how you focus on only one point in my posts and ignore the relevant bits. Duncan, You can get rich any way you like but to have the 'suffer so i may posses' mindset is ridiculous in this day and age of abundance and unlimited opportunity.

Buono Fortuna


Perhaps I'm just a mere mortal.. but I do choose not to have things now so that I can get to where I want to be financially faster..

Brains, you should write a book, as one that tells me how to have everything I want now AND continue to grow my wealth would be a book I'd buy.. But guess what.. I still wouldnt buy a nice car..

Duncan.
 
Really Brains, I would like to know too. What is the secret to building wealth and NOT delaying gratification to some extent?
Robyne
 
Originally posted by brains

eg: Delayed gratification is just another way of saying 'i dont want to work my arse off to make more money NOW '



Ahh, I see where you've come off the rails Brains.. you see you would appear to be delaying gratification on a TIME basis..

You have activities you'd rather be doing but you're working your arse off instead?

Duncan.
 
A compromise

My compromise was to buy a late 80's luxury car (Mercedes) from a friend who imports them directly from overseas. It is very comfortable, and reliable.

Paid cash, total price to get car on the road was around 20% of it's original price (its new price 15 years ago), and yes, like many others, I plan to keep my car for as long as possible!
 
I think Duncan's original post is being taken out of context.

In my opinion his original point was that no matter which way you look at it new cars are very expensive and you can't get around that no matter how you justify it or setup the finance.

Now, as long as you are aware of that and factor that cost into your plan and you can still achieve your goals, then fine.

Duncan chooses to opt out of that as a car is not important to him, he spends his money on power tools. Just like you probably would not by power tools and instead have a new car. Not everyone is the same.

Someone also made the point that old cars are unreliable etc... I happen to know that Duncan has a old japanese ute. Not only do these things go forever with very little maintenance, but parts are genuinely not hard to find.

Anthony.
 
I wasnt going to post anymore on this thread but here goes.

Ahh, I see youre wrong Duncan. I have worked hard previously but now i take it easy and make more money than i ever have.
I do exactly what i want to do and it aint working (not these days anyhow)

I started a business years ago ( i was 29yo). I grew the business and was involved full time in the business. Then i decided i didnt want to work in my business but on it.

For the past few years it has been managed and i moved up the coast to live on the beach. I drive to Sydney maybe once a week to check on things and chat with the manager and/or accountant.
So, sure you have to work hard and think creatively to start with and then form a strategy to leave the day to day running of the buisness .

And if i can do it, anyone can.:D

Robyne,

The answer to your question is simple. Just make more money now and lots of it. Then you can spend it now and invest for the future as well.

How you do the above is up to you, everyone has a different way and you dont have to live like a poor person and save every cent to have a great future, you just have to figure a way to do both.






Originally posted by duncan_m
Ahh, I see where you've come off the rails Brains.. you see you would appear to be delaying gratification on a TIME basis..

You have activities you'd rather be doing but you're working your arse off instead?

Duncan.
 
Originally posted by brains
I wasnt going to post anymore on this thread but here goes.

Ahh, I see youre wrong Duncan. I have worked hard previously but now i take it easy and make more money than i ever have.
I do exactly what i want to do and it aint working (not these days anyhow)

Right, you did the hard yards and now you're reaping the benefits. Great! I sincerely look up to you.

We all in our own way 'suffer in order to possess'.. Just as you have done. Some by giving up personal time (ie working hard) some by living frugally.. I gave up Cars and I'll never take them up again, I'm so over them. I give up other things including time, lavish holidays, DeWalt Tools, Snap-on tools.. I cant see what your problem is with the original blasphemy that you feel I uttered.. We all suffer in order to possess.


Duncan.
 
Each to their own Duncan, I must admit that I intentionally or subconciously look for houses in need of some sort of reno, mainly to justify the purchase of yet more power tools. :D :D
I do like a nice car though.
But the power tools or air tools like property are going to have to take a back seat for a few years while I concentrate on a new business. I'll still look in here as oft as I can tho.
The beginning of a great adventure .............
astroboy
 
Originally posted by Kevmeister
And, I'm really interested to know what particular feature IBM's notebook has for $5500 that can't be gotten in something around the $3-3.5K mark?

Not terribly much for the average user... but there are a couple of things...

- battery life of about 9 hours or so
- ultra light weight (around 2kg)
- 1400x1050 14" screen (very sharp !)
- very strong light chassis (Titanium)
- 512MB standard RAM

But for the average user the top of the range R40 is pretty much as powerful - it even comes with a 15" screen... it's just a bit heavier and less stucturally strong, with a few less standard features than the T40p. It also only costs $3600 (rec. retail). The cheapest R40 laptop retails for only $1500 - which is an incredibly cheap price for a laptop !!!

I recommend to all of my friends who buy laptops that they look at the R series - there's no need for the T series for general users.

However for our work given that we travel so much and demonstrate software that really pushes the abilities of the machine, we need something that's ultra-light, ultra-strong, and ultra-powerful - a T series !. Of course, we are by no means typical users.
 
Originally posted by Donna L
Me? I just continue to drive my phonemonally reliable 9 year old Daihatsu Charade with 170k on the clock (no smoke)

Love my "phonemonally reliable" (as you put it) 9 year old Daihatsu Charade as well - except we only have about 90k on the clock :D

Great little cars hey ?

I've started running mine on Premium Unleaded. Given that we only fill it up about once every 2 months - it doesn't cost that much more in real dollars, and I really think we get up to 20% more range out of a tank now - and we certainly get a lot more power (very noticable in such a small car). I think it's totally worth it.
 
QLD has some kind of enviro law, can't remember specifics but basically, if you observe a car "blowing smoke" for more than 10 seconds straight, & report it , it is off the road if confirmed by DoT.
Bye bye Dunc....
 
Originally posted by brains
Ahh, I see youre wrong Duncan. I have worked hard previously but now i take it easy and make more money than i ever have.
I do exactly what i want to do and it aint working (not these days anyhow)

I started a business years ago ( i was 29yo). I grew the business and was involved full time in the business. Then i decided i didnt want to work in my business but on it.

Hi brains,

Arent you skipping over the exact points you highlighted in Duncan's earlier posts?

I have worked hard previously... I grew the business and was involved full time in the business.

So you worked hard to establish your business and set yourself up, and seem to have done wonderfully...

But during the times you worked the hardest and reaped the least from your new business, did you spend the equivalent of a years salary (before tax) on a depreciating asset?

I just cant fathom how people would recommend others start out this way (which is what the original post was about - not about investors with 5-10+ years of experience and hundreds of thousands of dollars of equity, which is what a number of posters in this thread already have...)

I spoke to a friend about 18 months ago (Ive recounted the story in the forum before...)... and he had 25k in cash to "spend"...

I spent around 15-20 hours showing him how he could own a property which would grow in value over the next few years... instead, he bought a brand new 4 wheel drive (borrowing another 25k to do so...). This wasnt for work, and none of the costs were deductible... but he certainly impressed a lot of his friends :p

Now, nearly 2 years later, he owns a car he is trying to get rid of just to cover his loan and get around 10k of his 25k back ... while the property has grown from 200k to around 310k...

He did the right thing did he brains?

Best wishes,

Jamie :p
 
Originally posted by astroboy
QLD has some kind of enviro law, can't remember specifics but basically, if you observe a car "blowing smoke" for more than 10 seconds straight, & report it , it is off the road if confirmed by DoT.
Bye bye Dunc....

Doh! Lucky I live in SA :) I only blow smoke in the morning, it's OK after it warms up :)

Duncan,
 
Back
Top