The other day at work I walked by two pizza delivery cars, one of which was a Mercedes. Now I have to call the driver out on this waste of money. Talk about ghetto rich, using a $40,000 vehicle to deliver pizzas. Whether you use a Mercedes or a Ford Focus the pizza won’t know the difference. For anyone who’s ever bought a Mercedes know the upkeep cost thousands annually, often two to three times more than other vehicles.
Any wages and tips earned from this job will not be offset by the added depreciation due to higher miles and wear and tear. I’m not going to tip someone extra if they deliver my pizza in a nice car, heck I might even tip them less as I think they’re doing great.
No one who really matters care if you have a nice car.
If you’re dating people who are impressed by your nice car then you’re looking at short term fun. If your have long term goals with someone remember that 65% of divorces are caused by money issues. When I see someone with really nice cars I often wonder how many Vanguard Total Stock Index Shares I can buy with that car payment. (Between 7 to 10)
Now on to my favorite readings this week:
Andrew at Livingrichcheaply wrote about Broke? It may not be your fault in regards to external circumstances that can influence your wealth building. It’s a nice read but I would say that it is your fault if you’re broke. Andrew is also looking to buy a home, you’re all invited to his house warming party. Don’t forget the beers.
I reached into Stefanie’s archive at Thebrokeandbeautifullife in regards to how she chooses stocks. She lives in NYC on a very tight budget as an actress. They’re good picks which goes to show you that you can invest at any income level.
Holly at Clubthrifty wrote about Obamacare and shows you the law of unintended consequences. If you think something is expensive wait until it’s free. (Means government involvement.) Obamacare is a big reason why you should have investment income as opposed to wages.
Brad at RichmondSavers wrote about financial rules to live by. It’s a good list but he misses the biggest one, which is marry the right spouse. Marry the wrong one and you’re looking at annual losses of 50%.
Len at Lenpenzo wrote about how cheaper gas actually costs more. It’s silly the things people do to save pennies, but make stupid decisions that cost them thousands.
Joe at Stackingbenjamins wrote about ways to earn money faster. It’s not the same crap advice you’re used to like making your own soap to save 25 cents. Look at the person siting next to you, they could be the reason.
Shannon at the HeavyPurse wrote about phrases to use around your kids when talking about money. This is good advice, if you want to doom your kids to a lifetime of debt then treat money as though it’s evil.
Bryce wrote at Saveandconquer about things he would tell a young investor. It’s another good list to follow as it is highly important to start early. I agreed with everything except the part of investing in a Roth before maximizing your 401K. I’m going to write about that in a future post.
See you all this week.