I always wanted a Porsche convertible! It doesn’t stop there; I like Ferrari’s, Aston Martin’s, BMW’s, AC Cobra’s and much more. I like antique and classic cars too. Maybe it is a fantasy, a dream or a goal. I remember the first time I drove a Mercedes Benz 500 SLC or saw a Ferrari up close. It was one of my goals or a conjured up sequence fulfilling a psychological need! Whatever it is, it is no longer a fantasy!
When I was in my thirties, I achieved financial freedom! I accomplished all my goals at the time including trading my more modest BMW for a Mercedes. Financial freedom meant that I no longer worked for money because I had a steady income from rental property. Just knowing that I determined my future changed my thinking immediately, but that was not enough. Growing up with conservative parents always meant I got what I needed, not necessarily what I wanted.
There is nothing wrong about those values, but I wanted more. After all, it got my parents through the depression, helped them have successful businesses and paid for my college education. We lived in a ten (10) room custom built house next door to my doctor and dentist. Not bad for two (2) immigrants without much education. They were two (2) very determined people who worked hard 24/7 to have the American dream. I learned a lot from them which helped me succeed in life.
In fact, I normally live by those values daily! I bring my lunch to work, rarely go shopping, spend very little on most things, but sometimes you give in to your desires. You know what I mean you give in to your desires. When you are on a diet, you break it by having a donut or something else. You may be working on your goals such as reducing debt or sticking with your budget and something happens. If you have savings or an emergency fund you can stay on track.
I am talking about something that can really throw you off track. A large purchase can throw you way off track immediately and in the future. It will keep you from reaching various goals including reducing your retirement savings. Can you bought a Porsche Cabriolet for cash? Do you want to invest $115K in a car or in your retirement? In five (5) years, the car will be worth less or invest conservatively and it will be worth more. What do you do?
Most of us will never get a Porsche convertible, but consider it a metaphor for any big expenditure. All of us break our budgets with purchases you do not need, but it is a choice. Which is more important to make the purchase or stick with your goals? It is not just the money, it is the fact it throws you off track for months, years or forever! $100s or $1,000s can easily throw you off your budget and your goal. How do you stay strong?
How do you resist getting a Porsche or some other fantasy? For me, I keep my eye on the goal and I make it important to me. Not everyone is going out to buy a Porsche, but a $20K purchase can throw you off too. You might buy a big house and take on a bigger mortgage than you can afford or a bunch of smaller purchases. This is why you have financial goals and the budget or structure to help you achieve it. Keep your eye on the goal and stick with our budget.
I gave up my fantasy of getting a Porsche convertible because I don’t want it to stop me from reaching my goals. I actually gave it up a long time ago (25 years) because I could not justify buying a $60K (at the time) car. I knew it would throw off my goals and materially affect my lifestyle. My solution was to rent one for my 40th birthday. When my birthday came around, I never went forward with it. It just was not that important to make happen anymore. Perhaps, enough was enough! I always wanted a Porsche convertible, but decided to keep it just a fantasy!
Photo by: gareth 1953