- Joined
- 3 February 2000
- Messages
- 3,942
There are certain times a nice / flashy car is great and times it is not appropriate.
I would never, ever do business with someone trying to sell me investment advice or push an investment idea for someone else if they drove up in a $200k+ car because that job does not pay enough to PROPERLY afford that type of vehicle. There is a big difference between being able to make payments and being able to own something without selling out your future. If they can in my opinion properly afford a $200k car, they would not be working trying to sell me investment advice. That means their personal life is not in line with the type of financial advice I want, so I would not do business with them.
I would, however, consider investing in a project WITH someone who drove very expensive cars.
I don't care what someone selling insurance or stocks drives. I don't look to them for advice, I look to them for a service which is a commodity. I can make my own decisions about stocks and insurance, possibly with guidance from my accountant and attorney.
I don't care what my doctor, dentist, or a contractor drives. I know their rates and I can judge their work. If their work justifies their rates, they can drive a space ship for all I care. Some people feel differently but that is how I feel. However, if I were in a business where people's perception my car (or watch or whatever) might make a difference in my financial situation, I would certainly give some consideration to what I drove to a business meeting. If others choose not to, it is their choice to make!
Some professions ARE expected to show status symbols. Attorneys are a good example. I think many attorneys could honestly say they need to drive a nice expensive car or they might scare clients away. Is that right? Probably not, but it is life.
What do I consider being able to "properly" afford something? Andrew mentioned the Millionare Next Door. That is an interesting book. I feel some of the conclusions or implications are off base, but the math and survey statistics are probably the best available research on affluent people in this country.
Here is a simple formula from that book based on statistical data that lets anyone see how they are doing financially, assuming you make a decent salary but are neither "filthy rich" nor "dirt poor", and assuming no radical changes in income in the last few years: Age / 10 * annual income
If your net worth is about equal to that number, you are doing OK. If you are at twice that number or more, you are doing very well. If your net worth is much less than that number, you are spending too much. These are not personal judgements, just a measure of how well you are building your net worth.
Tied into that, I do not see the comment Carguy! made as quite the compliment he does.
To me the guy is saying "You do good work and I see you are spending heavily on luxury items; I am glad, because that means you will probably continue to be available for me to hire instead of becoming financially independant."
It's just like real estate investors who love good tenants, or banks who love good loan customers, or companies who love top performing salesmen. Who wouldn't love someone you can reliably make money off of?
[This message has been edited by Lud (edited 25 April 2002).]
I would never, ever do business with someone trying to sell me investment advice or push an investment idea for someone else if they drove up in a $200k+ car because that job does not pay enough to PROPERLY afford that type of vehicle. There is a big difference between being able to make payments and being able to own something without selling out your future. If they can in my opinion properly afford a $200k car, they would not be working trying to sell me investment advice. That means their personal life is not in line with the type of financial advice I want, so I would not do business with them.
I would, however, consider investing in a project WITH someone who drove very expensive cars.
I don't care what someone selling insurance or stocks drives. I don't look to them for advice, I look to them for a service which is a commodity. I can make my own decisions about stocks and insurance, possibly with guidance from my accountant and attorney.
I don't care what my doctor, dentist, or a contractor drives. I know their rates and I can judge their work. If their work justifies their rates, they can drive a space ship for all I care. Some people feel differently but that is how I feel. However, if I were in a business where people's perception my car (or watch or whatever) might make a difference in my financial situation, I would certainly give some consideration to what I drove to a business meeting. If others choose not to, it is their choice to make!
Some professions ARE expected to show status symbols. Attorneys are a good example. I think many attorneys could honestly say they need to drive a nice expensive car or they might scare clients away. Is that right? Probably not, but it is life.
What do I consider being able to "properly" afford something? Andrew mentioned the Millionare Next Door. That is an interesting book. I feel some of the conclusions or implications are off base, but the math and survey statistics are probably the best available research on affluent people in this country.
Here is a simple formula from that book based on statistical data that lets anyone see how they are doing financially, assuming you make a decent salary but are neither "filthy rich" nor "dirt poor", and assuming no radical changes in income in the last few years: Age / 10 * annual income
If your net worth is about equal to that number, you are doing OK. If you are at twice that number or more, you are doing very well. If your net worth is much less than that number, you are spending too much. These are not personal judgements, just a measure of how well you are building your net worth.
Tied into that, I do not see the comment Carguy! made as quite the compliment he does.
To me the guy is saying "You do good work and I see you are spending heavily on luxury items; I am glad, because that means you will probably continue to be available for me to hire instead of becoming financially independant."
It's just like real estate investors who love good tenants, or banks who love good loan customers, or companies who love top performing salesmen. Who wouldn't love someone you can reliably make money off of?
[This message has been edited by Lud (edited 25 April 2002).]
