Thinking of selling my car

[Face76]

People keep assuming I want to turn 500 bucks into a million. No, I am realistic. 500 into 525 is just fine. I guess I'll restate my point. I want to be a good example to my children. My parents couldn't be to me, so I think it's the best thing I can ever give them. My kids will respect and appreciate more the examples and life lessons than a car that will just might be a regret or a cool thing passed up.

This is the most important point of all - your kids will live their lives like you do. Acting in a responsible way will pay bigger dividends with your kids than any investment can. A certain level of income does not, in of itself, dictate what you should buy or own in terms of material possessions.

Good luck. Buy a Vanguard balanced mutual fund and forget about it. You'll find that the harder you work at investing may produce worse results. No matter how much time you put in, it is still a hobby to you. Its a lot simpler than you think to accumulate wealth - save a lot of money and don't lose any!

 

[shelbysvt]

Just because you own a gt500 doesn't mean your a bad example to your children. You don't want your children to become stingy and save all their money so they can die without having enjoyed life. You only live once. The best way to invest and build wealth as you want to is not through stocks, bonds, or real estate, its through YOUR JOB. That is the only secure income you have. All of these other things are extra. If you can afford this car comfortably and it doesn't cause any financial stress on you then keep it and enjoy it and give it to one of your kids later down the road or sell it and get a new toy. Also make sure you are able to save.

And start with selling all the jewelry you have before you sell this car. Use whatever money you can get off the jewlery to invest in stocks with low risk (this means dividend stocks like verizon for example) and MAYBE real estate to rent out in a desireable area with extremely high demand and very low supply. You don't need to go crazy and sell off every enjoyable asset you have to show your a good person. Being a good/smart/responsible person doesn't mean you should impoverish yourself. Just stay in your income lane so to speak and don't go outside it untill you make more income.

Also keep an eye out for opportunities outside of stock and real estate like for example the alcoa wheels. Everyone who sold them earlier made pretty much 50% or higher return on their investment with almost 100% gurantee. Hardly anything in life will be that simple so if something like that comes up again in any aspect jump on it.

 

[662HP631TQ]

Thanks everyone for your thoughts. I'd like to point out I'm not doing this to make a penny into a million dollars. Slow and steady investment, No unrealistic goals, and realizing I'll lose and gain. The main motivation is my wife and kids. They need a good example of someone building wealth not someone chasing materialistic things and constantly a slave to debt and jobs he doesn't like. Materialistic things don't work for you to make more money, generally speaking, so I'd like to explore FREE ( or as close as possible)ways to enjoy myself. Whether taking my kids to the park, growing vegetables and cooking my wife a nice meal, or reading. Those to me are much more enduring and much more freeing things than any material possesion ever will.

 

[Iceman5000]

While I personally feel what you are wanting to accomplish is very commendable, let me just show you "the other side of the coin". When I was growing up, my parents set a very good example for my sister and I. My dad was a very hard worker (still is), my mom was a stay at home mom. They were very frugal, even though my father made pretty good money. They had the same 2 vehicles for most of my entire childhood 17+ years. They still live in the house that they paid 30k for in 1973. My mom has a 2004 Cadillac she bought new that has 3k miles on it because she prefers to drive her 1985 Chevy van. We vacationed as a family at least 2 times a year, and lived a comfortable, though modest life. Fast forward to today, both my parents are in their 70's, multimillionaires, and are very miserable. They are afraid to spend a dime on anything. They are in decent health for their age, but refuse to go on vacations, or do anything else, "extravagant" with their money. What this taught me over my life, is you can't take it with you. I don't live beyond my means, I have a great retirement plan + 401k, but I have fun while I am still relatively young and can enjoy it. My daughter is 24 and expects everybody to pay her bills, and leave her everything when they die, because my parents chose to spoil their grandchildren as their only "splurge" in life. I will leave some to my daughter but it is not going to be my goal in life. Nor do I expect anything from my parents, even though I know I will get about 1/3 of their estate, I wish they would just enjoy the fruits of their labor and have fun for the rest of their life! Spend every dime of my inheritance and have fun doing it. My dad was self made, I am self made, and my daughter should be the same. Just my 2 cents. Good Luck to you!:beer:

 

[ryan319]

I don't care about driving it, I've had a mind shift. My children are young and the greatest thing I can give them is the example to understand that material things are overrated in comparison to the freedom building wealth provides. I see your point, but that's more emotional to me. I am trying to break that habit.

i get your point though. i've thought about it too. you just have to find the right balance that you are comfortable with. i've never been without a sporty car since i was 16 (34 now) and i've worked my way up in the car ranks over the years. i could never sell all my sports cars and drive a camry. it just wouldn't work for me. all my other responsibilities (family, house, retirement, etc) come first though.

 

[stangposse]

hard to give advice w/o speaking in general, vague terms since I know nothing about you or your situation. But there is one thing I can suggest....do NOT sell your gold.

 

[662HP631TQ]

Just because you own a gt500 doesn't mean your a bad example to your children. You don't want your children to become stingy and save all their money so they can die without having enjoyed life. You only live once. The best way to invest and build wealth as you want to is not through stocks, bonds, or real estate, its through YOUR JOB. That is the only secure income you have. All of these other things are extra. If you can afford this car comfortably and it doesn't cause any financial stress on you then keep it and enjoy it and give it to one of your kids later down the road or sell it and get a new toy. Also make sure you are able to save.

And start with selling all the jewelry you have before you sell this car. Use whatever money you can get off the jewlery to invest in stocks with low risk (this means dividend stocks like verizon for example) and MAYBE real estate to rent out in a desireable area with extremely high demand and very low supply. You don't need to go crazy and sell off every enjoyable asset you have to show your a good person. Being a good/smart/responsible person doesn't mean you should impoverish yourself. Just stay in your income lane so to speak and don't go outside it untill you make more income.

Also keep an eye out for opportunities outside of stock and real estate like for example the alcoa wheels. Everyone who sold them earlier made pretty much 50% or higher return on their investment with almost 100% gurantee. Hardly anything in life will be that simple so if something like that comes up again in any aspect jump on it.

i am focusing on being a good example the best I can for my wife and kids.
I grew up in a bad tough city my mom smoked crack and was an alcoholic. My father saved me one day and took me away from that. My mother had her fingers cut off at work from a machinery accident and received a huge settlement which she promptly bought stupid depreciating assets! So you can see how much of a bad influence she was and I want to be the complete opposite. To add to my example here above, she actually purchased an authentically used Trans Am pace car as her very first purchase in 1979 22K was a lot for a car, very very unwise as is my Shelby... I BElIEVE!!
I don't think anyone is bad or a bad example for owning a Shelby...

Funny...
i own and have already decided to sell the Alcoas....just not yet and they are still brand new in box! I own 1 residence already paid for by inheritance and almost done paying for my current house and the plan is to buy small houses in good neighborhoods as long as I can. The kicker..... My wife loves smaller houses because she is OCD and couldn't keep up with the demands of cleaning a huge house. That empowers us to buy small houses (Under 1300 SQ FT) that we can pay off quickly then rent out.

 

[662HP631TQ]

hard to give advice w/o speaking in general, vague terms since I know nothing about you or your situation. But there is one thing I can suggest....do NOT sell your gold.

I need to sell my gold, but I recognize that NOW may not be the perfect time because how gold has fallen in value and at this precise moment I stand to lose, but it is in my immediate plans.

 

[662HP631TQ]

i get your point though. i've thought about it too. you just have to find the right balance that you are comfortable with. i've never been without a sporty car since i was 16 (34 now) and i've worked my way up in the car ranks over the years. i could never sell all my sports cars and drive a camry. it just wouldn't work for me. all my other responsibilities (family, house, retirement, etc) come first though.

I have been without a sporty car. My very first new car was a 2007 Dodge Caliber SXT. Followed promptly by the SRT 285 HP variant and now the Shelby. I also own a 2005 Malibu and a 2011 Toyota Highlander (My Wife's) so I'll stilll have transportation. I'd actually like to eventually get into a fully electric car.

 

[ON D BIT]

When I read 60,000 in jewelry, instantly thought this guy is impulsive. Just ridding yourself of nice things won't make you rich. If you have a spending problem there is actually a 12 step group for spendaholics.

Before you do anything, I'd suggest taking a deep breath. If it's an extra car and a true toy then getting rid of the extra expense may make sense, however, the depreciation on the car is greatest in the first year or two and slows after that. If it's a daily driver then realize that you still have to drive to work etc.

I agree with the above, slow and steady wins the race. Make sure you are maximizing the tax benefits of Roth accounts, 401ks, IRAs etc. If you maximize that stuff and you can still afford the car then I'd enjoy it.

I'd suggest reading the book "The Millionaire Next Door." The book is an interesting read and a lot of the financial self help "gurus" have been found to be full of crap.

Good luck and congrats on your realization. It's not an easy change so take it easy on yourself and know that you will have slips.

Great post!

One finance guy says dont buy new cars until you have 1 mill + in net worth. Depreciation and tax loss($5k on the gt500) is never good.
Another finance guy says keep new cars at least 7 years to validate the purchase, or to recoup the initial loss.

If you do not know what to do, do nothing until you do. The market right now is high again I would not trust. It is being held together by string and tacks. The QE and ultra low rates are hiding a bigger problem.
Food stamps growing 75 times faster than job growth!
Food Stamp Growth 75X Greater than Job Creation | The Weekly Standard
Wealth is being lost all around!
The PJ Tatler » Doesn’t Obama Care about Blacks, Latinos?

Hispanic families lost 44 percent of their wealth between 2007 and 2010, the Urban Institute estimates, and black families lost 31 percent. White families, by comparison, lost 11 percent of their wealth

Everyday I hear rumors of another billionaire bailing on the market. Call me crazy but I think we are living 2007 all over again.


My advice. Sell the items you do not use. You have already taken the loss of the gt500 whether you sell or not, so I would keep it. Hord cash! Money markets, gold and silver, piggy bank at home until calm or crash hits the market. Buy Low!:beer:

 

[ON D BIT]

OP, are you making payments on the car? If so by all means sell it or pay it off. If you feel you can not pay for it cash comfortably(ie not using the emergency fund or retirement) then yes you need to sell it!

 

[shelbysvt]

i am focusing on being a good example the best I can for my wife and kids.
I grew up in a bad tough city my mom smoked crack and was an alcoholic. My father saved me one day and took me away from that. My mother had her fingers cut off at work from a machinery accident and received a huge settlement which she promptly bought stupid depreciating assets! So you can see how much of a bad influence she was and I want to be the complete opposite. To add to my example here above, she actually purchased an authentically used Trans Am pace car as her very first purchase in 1979 22K was a lot for a car, very very unwise as is my Shelby... I BElIEVE!!
I don't think anyone is bad or a bad example for owning a Shelby...

Funny...
i own and have already decided to sell the Alcoas....just not yet and they are still brand new in box! I own 1 residence already paid for by inheritance and almost done paying for my current house and the plan is to buy small houses in good neighborhoods as long as I can. The kicker..... My wife loves smaller houses because she is OCD and couldn't keep up with the demands of cleaning a huge house. That empowers us to buy small houses (Under 1300 SQ FT) that we can pay off quickly then rent out.

Your mother's situation and your situation are completely different. You keeping your shelby is not the same mistake she made with her settlement money. Like I said before if you can comfortable afford it and it doesn't interfere with your bills or savings (i.e. causing you to save less than normal) then keep it. Who knows it may go up as the FGT, we won't know till the new shelbys come out. But even so keep it just to enjoy a little something for your labor. Buying small houses in good neighborhoods is fine just make sure those neighborhoods have HIGH DEMAND. I can't stress that enough if you are looking at homes for investments today. The neighborhoods with high demand and no supply don't lose money really. At most especially in the square feet you are talking if you get 15k off your lucky.

See in my situation I am younger than you and technically I could sell my shelby and put that money to work but I won't because I already have money I am saving that I'm going to put in a new condo I am moving into, and I will make money off it because of the area and plans I have for improving it. If I wanted to I could instead use the renevation money and go buy the zr1 I've always wanted, but to me such as yourself I want to build my wealth. But there is a happy medium you have to find. If the shelby is your zr1 then maybe you should sell it. But if your're in a situation like me, where you can have your shelby and build your wealth too (i.e. have your cake and eat it) then keep it. It flies both ways the key is finding balance.

 

[mustangc]

... I've had a mind shift. My children are young and the greatest thing I can give them is the example to understand that material things are overrated in comparison to the freedom building wealth provides...

It sure feels good to "change your family tree"!

If you haven't already, I would advise you to check out Dave Ramsey and read a couple of his books. I facilitate Dave Ramsey's Financial Peace University at our church. It sounds like you're well on your way through Dave's "Baby Steps". He has a new course coming out called "Legacy Journey" that is a great follow-up and will be relevant to where you are in your journey right now.

 

[reason4treason]

getting a vasectomy frees up an awful lot of cash. just sayin'. can probably borrow somebody else's kids for Christmas sentiment, etc if necessary a lot easier than you can borrow somebody else's road rocket.