Last night I was watching a show on supercars. One of the cars they showed was the Lamborghini Aventador. It is truly an amazing car with a huge engine, an amazing look, and those cool doors that open upwards. I have always been a fan of Lamborghinis. I never understood why people would be interested in corvettes and Camaros when there were cars like the Lamborghini Diablo out there.
Now, those who have been reading this blog for a while, and those who know anything about building wealth in general, know that one of the best things you can do is to buy cars used with cash and not spend too much. If you were to pay cash for cars and avoid the car payment all your life, and then invest the money you were saving on depreciation and interest, you would retire a millionaire even if you did nothing else. So why am I now proposing buying a $400,000 sports car?
My plan would not be to buy an Aventador now. I’ll stick with my four-year old Toyotas that I can buy for cash. At this point I’ll keep saving and investing, building up my pipelines and constantly increasing the amount of income I get without needing to work. I’ll also continue to reinvest most of that income so that it builds on itself. I’m also not planning to stop working anytime soon.
Because I’m not spending money on new SUVs every three or four years, however, by the time I’m ready to retire I should have an income from investments that would let me buy a new Aventador for cash if I so chose. (I’m not sure if you could buy used Lamborghini, or even if you would want one since I’m not sure how reliable they would be after getting some mileage.) How cool would it be to drive into work the last day in a new Lamborghini?
OK, truth be told, while I probably will be able to, I’ll probably never buy a Lamborghini. While I was a big Lamborghini fan when I was about 12 (mainly because a friend told me they could do 310 mph. He lied a lot!), I would know the thing would be going down in value with every mile I drove and even every minute it sat in my garage. I’d be scared to take it out in bad weather, it would kill me when the thing scraped bottom when pulling into driveways, and I’m sure it would cost a ton to fix anything. I might very well start trading up from Toyotas to good quality used Mercedes, Infinities, Cadillacs, or something with a little more luxury though.
I’ve found that when you start to live where you are managing your money, you hate to throw away large amounts of money on anything. I’d rather buy a condo or a beach house that I could sell later if I’m going to spend a lot of money. I’d rather make permanent home-improvements such as additions or adding granite or marble. Things that will hold their value better and that I can enjoy for years to come.
Maybe I’ll just rent an Aventador for my retirement party.
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Disclaimer: This blog is not meant to give financial planning advice, it gives information on a specific investment strategy and picking stocks. It is not a solicitation to buy or sell stocks or any security. Financial planning advice should be sought from a certified financial planner, which the author is not. All investments involve risk and the reader as urged to consider risks carefully and seek the advice of experts if needed before investing.