Tried to buy a ZR1
02-28-2018, 03:01 PM
#141
Burning Brakes
Actually I am in that bracket that I could drop that kind of money down if I wanted to and not flinch but the type of person that I am is not indicative on if I am a fool and part ways with my money in such a wasteful manner. I have friends that would rather drop the cash down to pay for said vehicle just because they don't want a car payment and to say it is paid off. I always ask them the same question. Why let the bank use your money when you can use it. Whether it be a lake house or any other piece of real estate that I own, I would rather know that I made the most out of my money. By the way it is called leveraging. And when talking about paying for something in cash. Don't just stop at cars. Use houses as an example as well.
https://www.quora.com/Do-rich-people...r-home-in-full
https://www.csmonitor.com/Business/2...re-need-a-loan
I guarantee you that some people who have the money still think that their money is a tool to make more money and that just because they have it, they don't blow it. Myself and friends I know who all have considerable amounts of money, who could easily drop double that amount would invest that cash rather than miss an opportunity to make more money than pay cash for said vehicle.
What you need to realize is that some people who have money might do that but not all people. As for using people like Gates or Buffet as examples is completely contrary to most people. In fact, Everything is relevant.
I have many friends that have much more than you stated and they still finance a car. Why? Because they are all about paying the least that they have to and maximizing the money that they have.
As for using the money for 5 houses as investments, why wouldn't I maximize my investment versus wasting the cash on a car? As stated, I tied up $750,000 worth of assets while you would be driving around in a paid off depreciating car. We are obviously different because I would rather have more than waste what I have. I would much rather buy the 5 $150,000 than buy the car just so I could say I paid cash for it. Different strokes for different folks but not everyone who has the cash to easily pay off a car does it.
SOMETHING you may want and most likely need to read:
https://www.earlytorise.com/how-weal...get-wealthier/
https://www.quora.com/Do-rich-people...r-home-in-full
https://www.csmonitor.com/Business/2...re-need-a-loan
I guarantee you that some people who have the money still think that their money is a tool to make more money and that just because they have it, they don't blow it. Myself and friends I know who all have considerable amounts of money, who could easily drop double that amount would invest that cash rather than miss an opportunity to make more money than pay cash for said vehicle.
What you need to realize is that some people who have money might do that but not all people. As for using people like Gates or Buffet as examples is completely contrary to most people. In fact, Everything is relevant.
I have many friends that have much more than you stated and they still finance a car. Why? Because they are all about paying the least that they have to and maximizing the money that they have.
As for using the money for 5 houses as investments, why wouldn't I maximize my investment versus wasting the cash on a car? As stated, I tied up $750,000 worth of assets while you would be driving around in a paid off depreciating car. We are obviously different because I would rather have more than waste what I have. I would much rather buy the 5 $150,000 than buy the car just so I could say I paid cash for it. Different strokes for different folks but not everyone who has the cash to easily pay off a car does it.
SOMETHING you may want and most likely need to read:
https://www.earlytorise.com/how-weal...get-wealthier/
I don't consider $5m-$10m-$15m 'wealthy' (which is what my original post referred to)...that's a nice comfortable life and is extremely admirable for those who have achieved it. $150k to $500k a year on investment income is nice. But, it can still make you 'think' about paying cash for a $150k purchase at times.
The other thing to consider is that NOTHING is guaranteed with investments AND many people don't want the hassle of 5 'new' rental properties. Your talking to someone who has owned A LOT more than most, from residential to commercial and currently industrial. There is nothing 'fun' about it. To each their own...
Also, as most of your articles state, everyone is in their own situation...Meaning? Perhaps a wealthy 40 year old would be more inclined to leverage himself than a 75 year old, who would rather pay cash for his car and be left alone. Blanket statements rarely apply.
The truth is, if you're talking about buying 5 rental properties for $750k, then that's NOT the bracket I was referring to. Again, not a dig, just not what my original post was aimed at. My original post wasn't aimed at 'most' people, which I made very clear. Still stand by my comment that most very wealthy people that I know simply pay cash for their TOYS. Exceptions will always exist...sports players, celebs, people leveraged to the hilt etc...Again, already previously mentioned that.
I wonder if Rick Hendricks financed that ZR1 at Barrett Jackson...I'm not sure it was even him who bought it. I know Jeff Gordon paid cash for his latest Z06...To each their own.
02-28-2018, 03:11 PM
#142
Clearly you didn't read my first post. I think I covered all your points there. I started it with "everyone is different..." Clearly you're doing what you feel is best for YOU.
I don't consider $5m-$10m-$15m 'wealthy' (which is what my original post referred to)...that's a nice comfortable life and is extremely admirable for those who have achieved it. $150k to $500k a year on investment income is nice. But, it can still make you 'think' about paying cash for a $150k purchase at times.
The other thing to consider is that NOTHING is guaranteed with investments AND many people don't want the hassle of 5 'new' rental properties. Your talking to someone who has owned A LOT more than most, from residential to commercial and currently industrial. There is nothing 'fun' about it. To each their own...
Also, as most of your articles state, everyone is in their own situation...Meaning? Perhaps a wealthy 40 year old would be more inclined to leverage himself than a 75 year old, who would rather pay cash for his car and be left alone. Blanket statements rarely apply.
The truth is, if you're talking about buying 5 rental properties for $750k, then that's NOT the bracket I was referring to. Again, not a dig, just not what my original post was aimed at. My original post wasn't aimed at 'most' people, which I made very clear. Still stand by my comment that most very wealthy people that I know simply pay cash for their TOYS. Exceptions will always exist...sports players, celebs, people leveraged to the hilt etc...Again, already previously mentioned that.
I wonder if Rick Hendricks financed that ZR1 at Barrett Jackson...I'm not sure it was even him who bought it. I know Jeff Gordon paid cash for his latest Z06...To each their own.
I don't consider $5m-$10m-$15m 'wealthy' (which is what my original post referred to)...that's a nice comfortable life and is extremely admirable for those who have achieved it. $150k to $500k a year on investment income is nice. But, it can still make you 'think' about paying cash for a $150k purchase at times.
The other thing to consider is that NOTHING is guaranteed with investments AND many people don't want the hassle of 5 'new' rental properties. Your talking to someone who has owned A LOT more than most, from residential to commercial and currently industrial. There is nothing 'fun' about it. To each their own...
Also, as most of your articles state, everyone is in their own situation...Meaning? Perhaps a wealthy 40 year old would be more inclined to leverage himself than a 75 year old, who would rather pay cash for his car and be left alone. Blanket statements rarely apply.
The truth is, if you're talking about buying 5 rental properties for $750k, then that's NOT the bracket I was referring to. Again, not a dig, just not what my original post was aimed at. My original post wasn't aimed at 'most' people, which I made very clear. Still stand by my comment that most very wealthy people that I know simply pay cash for their TOYS. Exceptions will always exist...sports players, celebs, people leveraged to the hilt etc...Again, already previously mentioned that.
I wonder if Rick Hendricks financed that ZR1 at Barrett Jackson...I'm not sure it was even him who bought it. I know Jeff Gordon paid cash for his latest Z06...To each their own.