XenonES3

My cousin, a billionaire, finally dumped his '96 Mercury Sable and bought a '99 GS400 in Green, spoiler, 17's, NAV, L-tuned suspension, and RMM grille with 23K miles for $21,000.

Despite his wealth, this is his ONE and ONLY car. He also bought his wife an '00 RX300.

Like many of us, the GS was and still is his dream car.

When I asked why he didn't pick something more "upscale", I received a 30 minute lecture about:

1. how money should be saved and invested
2. frugality builds wealth
3. the GS400 represents the MOST CAR for the LEAST money on the market,
4. The majority of his ultra-wealthy partners/clients drive LS430's and LS400's NOT $100K+ cars.
5. and if I even think about buying a vehicle other than a used Toyota/Lexus he will beat me to death....



Anyway just wanted to let you all know!

juan01

He's right... Most rich people probably won't even have any retirement funds to fall back on till they are 85 (average American life expectancy..?). I say, majority of the time, if you look rich, you probably aren't because you spend it all before you can even save any of it. lol like me! hahah

jtanoyo1

Yes, I totally understand where your wealthy cousin comes from. If you ever head out here to Indonesia, you will see that the most down-to-earth, non-splurging, blend-into-the-background people are usually the people who control the major part of the wheel of economy.

It's a little quirky: The lower the ladder is, the flashier the car gets. It's almost like the newly rich (or people who just suddenly got rich) must attempt to show the world how much money they own by buying things purely for display: 20-bedroom mansions when there was only 3-4 members in his family, a big-*** yatch when he's scared of the water, 10+ multi-million dollar cars when he was actually chauffered around.

Even the biggest stars went bankrupt because of this unnecessary splurging (can we say Toni braxton and TLC???)

So your cousin's advice is well-placed and even better if followed. He didn't get super wealthy from being dumb.

SC300Es

Also, not everyone who has money like cars. I know a few people who can afford nice cars that drive around in old Toyota's. To them, a car is something that gets them from point A to point B.

On the other hand, I have seen people to this and not enjoy their money. I know people that still trade in the stock market and they have no lives, no place to go or person to spend that money with. They invest their money for "I may need it one day" that never comes. Save all their lives and then leave all that money to people that never paid any attention to them while they were alive.

You just got to find the right balance between spending and saving. IMO

Ed

Gojirra99

Yep, I agree one should invest wisely, but not hoard money for the sake of hoarding. What's the point of being a multimillionaire if you can't have the best things in life.

One HoT

iTrader: (5)

Very well said Ed!

Guitarman

I have an uncle that lived exactly this way. In fact, he was day trading stocks for years, amassing close to 1 million on paper( actually had just over $900,000 ), and living like Ernest Hemingway in the Florida Keys, in a trailer park and driving a no- frills Nissan pick up truck. His goal was to make a million, but the stock market crash a couple years back put an end to that, and he limped away with just over 100k in assets after his losses, with really NOTHING else to show for it. He had to move up to Central Florida because the Keys were too expensive for him then.
Had he at least cashed some of his stocks in instead of getting greedy, he could have bought a nice house, a new car etc.SAD!

I think it's a commentary on how people lose sight of what LIVING is all about.
XenonES3, your cousin sounds like he's got a grip on the right stuff to live a happy life, without the pretense. Good story, cheers.

jcramair1

I strongly beleive in having a balance lifestyle when it comes to spending and saving. I have learned lots of good theories from books like: The Millionaire Mind, The Millionaire next door, Rich Dad-Poor Dad, Roberts Rules and several others....

I am a big beleiver in investing into your own business if your a business owner. I know on my side of the fence that my employees have the best technology available to them and that let's them gerenate more money for the company. It also controls the number of employees that I need in comparison to some companies who do not invest in technology and wonder why there overhead is so much.

ripe911

Forget about the investing part!! How did he get a 99' gs400 with all the options and 23k miles for only $21,000?!? The reason why he is rich is because he knows how to negotiate and look for a bargain.

My dad is like him. He was able to get 3 houses and one 16 family building by saving his money. Never had a car in his life, no cable, just now he got a cell phone and doesn't even have a credit card yet.

RON430

Great stories. An acquaintance was able to retire early and is pretty well set. He just drives a pickup. Not an ancient pickup but not new and not very fancy. Of course I have also been to the warehouse space he has leased with 16 Ferrari's in it, at least at last count.

SDuquette

Ummmm, I'm all about instant gratification. I'm 23 and have a good 20 years to get my retirement taken care of plenty of time by me. I like having a nice house, nice cars, a pretty wife, and a couple dollars in the bank, I mean, I am extremely happy now, and don't see any reason to pile away tons of cash.

Wald GS

iTrader: (1)

With all the money, he should of purchased a brand new car imo.

juan01

I've read some of the millionaire next door.. Smart, self made millionaires.

Hameed

Whenever I read comments from you jcramair1, I think about my business and how I cannot seem it get it off the ground to become busy enough to quit my full-time day job working for some other company. My business is doing ok, but not good enough to pay all my bills and have a life and be able to quit my full-time job.

It is a vicious cycle - I don't have enough time to lay out some long term goals for my business, or engage in some serious marketing to expand my business (as I have to work about 10 hours/day at another job). The consequence of that is that my business is based strictly on referrals (which is not a bad thing), however referrals are not enough to keep my business growing at a pace to allow me to quit my day job...................

In the end the business just pays for the luxuries in my life like modding my GS and stuff around the house. I really need to get my head up and fix this problem I am in. Just curious to know if you were ever in the same situation before your business was successful?

D2-AUTOSPORT

Thats very true, you have to maintain a balance!! While I would not own 3 yachts and 35 Bentleys if I were wealthy, I would not drive a Kia Sephia either!! LOL

As as the employees vs. overheard, I can bear witness that with a relatively small employee base, jc's company is doing quite well, so that theory must be working!

For those that have not read Robert Kiyosaki's line of books (The Rich Dad series), it is a great read, and real eye opener!!