Tag Archives: Bentley

Beamers, Benz, And Bentleys Or A GMC Truck?

Bmw, Car, Auto, Technology, Design, Bmw

When it comes to cars, people can blow more money than a newly signed NBA player or first round pick of the NFL draft.

It was recently reported that Americans are spending $18,000 a year on non-essentials. Which makes it pretty hard to stack those Benjamins; and even harder to be saying stuff like Drake and Lil Baby : Got M’s in the bank, like: “Yes, indeed.”

I have found that either you can be rich or act rich; you cannot be both.

However, don’t feel bad. Lots of people take years to learn that lesson. That is why this latest post is going to be a two-parter. 😉

See my post Catwalking To Get Paid: Modeling Is Risky Business

So don’t drop that top just yet playboy or playgirl, cause we’re equal opportunity like that here, because we’ll be right back later with part two of this post.

As soon as Springtime hits, more people are lining up at the convertible dealership faster than Punxsutawney Phil can make his prediction and see his shadow.

People are blowing major dough on their rides. If you are old enough to remember the MTV show Pimp My Ride, then you know its serious out here in these streets. $5,000 rims? You know it. Got to have that tint too? No problem. $2,000. Custom sound system? It will only set you back $8,000. And have to be like Three-Six Mafia and Stay Fly in the new whip by dropping $2,500 for a new pair of tennis shoes, $250 for Illesteva sunglasses, and $700 for new gear.

A new BMW can run you $40,000 and fully loaded could cost you over $100,000! Why not invest that money you say? The problem with investing in stocks and bonds is they’re boring as hell. A boss turns their garage into a Bentley dealership, stockpiles platinum Rolex watches, collects houses like chess pieces, turns their closets into a fashion house, collects $500 shoes like monopoly pieces, and opens up nightclubs. Got it, nerd? So light a Cuban cigar with a hundred dollar bill, pour your most expensive champagne in that crystal glass and put your feet up on a diamond-encrusted ottoman as Greenbacks Magnet presents Beamers, Benz, and Bentleys or a GMC Truck?

See my posts on Shoe Game Is Not For The Frugal At Heart and Introducing The $100,000 Bottle Of Water

THE PRICE OF LUXURY All things come with a price tag. Food. Water. Houses. But when it comes to cars, people are willing to drop some serious coin. I’m talking enough to put down a 10-20 percent down payment on a half a million-dollar home.

Remember cars are now coming more high-tech; like Lil Baby says, “Brand new whip got no keys.”

So what is the price of all this luxury?

Let’s take a peek.

For goodness’ sake, a GMC truck will run you $20,000-$30,000. Buy a decent quality car one-time and you’re done for like a decade!

When you have to start putting gas and groceries on plastic, then you are in some serious trouble.

If you can drop $75,000 on a new S-Class Mercedes-Benz, but your credit card gets denied while in the drive thru for a double-cheeseburger, then you need to check your priorities at the door of the Range Rover dealership.

Mercedes-Benz, Car, Amg Gt, Transport

If you are only able to make the minimum payments on $55,000 of credit card debt, then at that rate it would take you over half a century to get back in the black. No one should stay in the red that long!

TURNING HEADS LIVING LARGE AND TAKING CHARGE If your theme song starts off like this, “rain drops drop top,” then you may be in trouble.

Sports Car, Automobile, Vehicle, Auto

Trying to impress people with stuff usually leads you down to a life of misery and penury.

Personally, I have seen too many people get taken to the cleaners trying to impress family, friends, and acquaintances at stop lights for 20 seconds. That is a quick way to end up in bankruptcy court. Don’t believe me. Check out the NBA or NFL player’s union, stating that over half of NBA players are broke within five years of their retirement and even less for NFL ballers (there’s is three years).  

I even read an article discussing how men that drive fancy sports cars are less likely to want long-term relationships! Is that why so many pro athletes owe millions in alimony and child support! Then show up in court crying and telling the judge they can’t afford payments like T.O. After making more M’s than the M&M’s can put on its candy, it’s hard to feel sorry for you. But we hear you out there. It’s hard out here for a pimp.

FINANCIAL DISASTER ON FOUR WHEELS I guess I don’t have to tell you that overspending on cars is dangerous. What I do not get is when I see people not bat an eye at paying $50,000 for a new car, but then loss their minds if they get overcharged $0.50 for an ice cream sundae (um, what?)

Mercedes-Benz, Car, Auto, Transport

Pinching pennies on small items and dropping G’s on blackjack tables and designer car seats. That makes no sense.

You want to keep your fixed expenses low. That includes mortgages and cars. Why? So you can save and invest of course.

In order to try and retire early, it usually takes most folks saving 50% or more of their income.

Tough to do if you have to spend $3,000 every 3 months on repair bills at the BMW dealer. But because you are unwilling to negotiate at the farmers market or wait in line at Target or Costco, you spend like your life is made up of 75 hours instead of 75 years.

In order to avoid this fate myself, I paid off my car in 2009 and have not had another car note since!   I then went from saving $1 a day to over $1,100 per month! I calculated that if I could save $13,333 a year, then I would have over $100,000 of cold hard cash within 8 years! And I would be that much closer to saying “Got M’s in the bank, Yes indeed!”

5 Pieces of money advice from The Devil Wears Prada

Related image

“Fashion is not about utility. An accessory is merely a piece of iconography used to express individual identity.” – The Devil Wears Prada

I am sure many of you have seen or heard of the film The Devil Wears Prada. It was released in 2006 and based on a book written by Lauren Weisberger in 2003. The film starred Anne Hathaway, Emily Blunt, Stanley Tucci, and Meryl Streep. The film was a financial success and grossed millions at the box office.

What really made it great was the dialogue in the film. If you can decipher all the quips in the film, you can get some valuable money and life advice. All fiction has some truth.

Check out some hilarious, but honest, dialogue from the film.

Related image

This scene was particularly truthful and funny, but on point.

Image result for devil wears prada inner beauty

Let’s see him actually use facial expression to get his point across. 😂

“Yes, because that’s really what this whole multibillion-dollar industry is all about, isn’t it? Inner beauty.”

So, with no further ado, I give you lessons I learned while watching the film The Devil Wears Prada.

Let’s go!

Image result for the devil wears prada gif

SPENDING ON HIGH-END FASHION CAN MAKE YOU BROKE

I will not bore you with the details of countless celebrities who post their closets or other lifestyle choices on social media only to find out years later they are BROKE!

Related image

I have reviewed and studied many bankruptcy filings over the years. For work when necessary. And outside of work to satisfy my curiosity.  In addition, to reading books on bankruptcies, I seem to notice the following patterns.

Tons of credit card debt (usually more than $25,000)

Huge mortgages (for celebs this can be in the millions!)

Exotic Automobiles (BMV, Range Rovers seem to be favorites)

Property liens (foreclosures and short sales)

Thousands owed to the IRS (several celebs such as Willie Nelson and Chris Tucker owed the IRS more than $10 million dollars!)

In the film, Andy (played by Anne Hathaway) gets a job as the second assistant to Miranda Priestley (played by Meryl Streep) and works with the first assistant Emily (played by Emily Blunt) and staffer Nigel ( played by Stanley Tucci).

They regularly and casually name drop designer labels such as Tom Ford, Yves Saint Laurent, and Oscar de la Renta.

If you look up any of these haute couture designers, you will find clothing that ranges $500 to $10,000. You could drop $25,000 in their establishments in a single visit easy. The fact that you could turn that money into a fortune from investing is lost on those that buy these clothes.

Related image

I am not saying not to buy clothes. I am not saying not to buy designer clothes. What I am saying is that I need people to recognize that if you truly cannot afford to spend like the Queen of England, then you should act your wage. Buy what you can afford. If you want pricey clothing items or fancy toys, then buy them when you have made your first $1 million or second, but not before.

See my post Name brand labels or fat stacks? You decide.

JOB OR CAREER

Image result for the devil wears prada gif

If you ever watched that Chris Rock comedy special where he talks about the difference between a job and a career, then you understand what I mean by this.

A job pays the bills.

You watch the clock waiting for it to hit 5 o’clock and rush out of work like the building is on fire.

With a career, there is never enough time. You don’t watch the clock. You work for the sheer joy it brings you. The paycheck is a bonus in recognition of and a result by dint of hard work in excelling at what you do because of your drive and passion.  

In the movie, Andy is working in this job to land a bigger and better one down the road. That is all well and good, except for the fact that Miranda is a slave driver.

Image result for devil wears prada inner beauty

Emily: A million girls would kill for this job.

Image result for the devil wears prada gif
Related image
Image result for devil wears prada that's all
Image result for the devil wears prada gif

Related image
Related image
Image result for devil wears prada coat gif
Image result for devil wears prada that's all

See my post Jobs that pay $70,000 a year

MANSIONS OR STUDIO APARTMENTS

If you do some research, you can find what are the most expensive zip codes in America and the world.

According to Forbes, this would be 94027 in Atherton, CA where the median price of a home is $9,686,154.

You see the stark contrast of living conditions in the film. Andy lives in a small walk-up apartment in New York, while Miranda lives in the modern day equivalent of a palace with several floors and spacious rooms that could easily set you back for $2 million in New York.

One of the biggest expenses in any budget is housing. The trifecta of expenses is housing, food, and transportation.

While listening to a podcast on BiggerPockets, I learned about house hacking.

House hacking is when you live in one of the multiple units of your investment property as your primary residence, and have renters from the other units pay your mortgage and expenses.

If you can cut your expenses in this area, you are g2g (Good to Go). 😉

Please do not get caught up in the zip code and school district rat race. I say this because people will buy properties they cannot afford in good school districts and pay astronomical property taxes instead of investing that money. This can lead to retirement shortfalls if you are not careful.

My advice is to buy what you can afford and save the difference. Truth be told, when I looked up profiles on Facebook, I noticed that folks I knew that went to private school ended up going to the same colleges as everyone else including myself.   

Matter of fact, I know folks that were “C” students in high school and still managed to eke out an existence and graduate from a flagship university while some private school kids went to second tier state schools. Go figure.

See my posts

Why I think college should only be 8 months

Home Buying: Survival of the Fittest Wallet

Less Home, More Wealth

You could live in a safe but affordable neighborhood, drive Hondas, and put that money to work in a 401k or 529 college savings plan instead of paying high mortgages and property taxes. That would pay for college right there. I’m just saying.

BEAMERS, BENZ, AND BENTLEYS

There was a hilarious scene in the film where she tells Andy not to take public transportation. EVER!

I cannot say I agree with this. Let me tell you why. Public transportation can save you thousands in annual costs sue to lowering the cost of mainteannce and repair bills on your car. You could also forgo a car all together and have no car payment or maintenance and gas to deal with!

See my post Are car loans worth giving up $1 million dollars?

PEOPLE ARE THE GREATEST ASSETS

So, many people are working the 9-to-5 grind and in the rat race living check to check, but at the end have very little to show for it. Nothing in savings. Nothing in retirement. Nothing in the bank period.

For every dollar you earn, I suggest you find a way to stash away 5% of what you earn and slowly start increasing your savings rate monthly or annually by 1% or more. This will get you in the habit of saving and also allow you to start building an emergency fund.

See my posts

The greatest assets are people

Money and Life Lessons I Learned from Mr. T

During the film, Andy talks about getting some amazing job as a writer. However, this job is all about paying her dues.

Image result for the devil wears prada gif

You do not get something for nothing. You have to give to get. That’s the bottom-line.

Building strong relationships is to key to growth and a happy life. People rarely look back and say I wish I could have worked more!

Take pictures today. In 20 years, you will be glad you did. In reality, people think more about the things they didn’t do instead of the things they actually did.

So, stop and smell the roses while you can. Right now! Bend down and smell the flowers, take that trip, go visit family, make those phone calls, send that email, write that letter, hit send on that text message and stay in contact with those you love and care about.

No one cares about who dies with the most toys. People care about what type of person you are.

If you remember that episode of Golden Girls, Sophia wanted to know who would show up at her funeral, so she spread the word of her passing.

The people who show up are the ones who care.

Your legacy is not built in things, but lasts in the minds and memories of the people whose lives you’ve touched or changed in some significant way.  

Money will not and cannot buy true friendship or loyalty. If you are watching the news right now, you can see that for yourself firsthand with Michael Cohen.

Focus your energy on doing good things and good work so you will not ever have to look back and regret.

You will only look back and smile.  

Outrageous Loan Terms for Porsche that even the Rich can’t Justify

Want to finance an exotic car? No sweat. It will only cost you $157,944.33.

That amount is based on a Porsche that costs $144,750 with loan terms of 144 months, with a 3.3% interest rate, and $14,475 down payment.

Yes, you read that right. Financing for 144 months is the equivalent of 12 years! Just ridiculous.

Especially, considering that a car depreciates in value the minute you take it off the lot.

For example, a $100k BMW 6 Series after five years will likely only be worth $40,000 in resale value. Therefore, over that time period you have paid over $70k. You would still owe approximately the same amount as the current resale value and it would be worth even less in a few more years.

What made me look into this was listening to talk on a radio show I heard about being able to finance a $100k Porsche over 8 years. I was like that can’t be real. Oh, but it is. The people on the radio said that people were doing it and taking out these loans. I was like that’s insane. You can buy houses in different countries all over the world or in certain parts of the United States for that.

If you are so set on having an exotic vehicle, then I think the best course of action is paying cash in the form of a cashier’s check. If you have to finance a $100k car, then that sounds like a red flag that you can’t afford it. Instead of spending $100k on a car, why not invest it? Over a period of 12 years with a 7% ROI you could have $272,641 in your 401(k). Even without investing another dime, you could be a millionaire in about 20 years. Is that car worth a million dollars? I don’t think so.

Who are these people that want to finance a $100k car? The only one I have ever seen was on a Canadian television show called Til Debt Do Us Part hosted by finance writer Gail Vaz-Oxlade. In one episode, a married couple had accumulated a significant amount of debt, but what made this episode stand out was the fact that the wife wanted a very fancy car and was thinking of financing over $100k to get it. Mind you, the couple had kids and debt, so where was this money coming from?

Here is a sample of how the show went on to explain to viewers how people are spending and where the money comes from: credit. If you want to order Gail Vaz-Oxlade or other financial books, then look to the side or go to the top of my blog page and click the Amazon banner link.

Who are these companies that are likely to finance these amounts? BMW Financial, Audi Financial, Porsche Financial, and the like. See the screen shot.

And not only do these companies allow you to finance, but expect a down payment on cars with six-figure price tags.

I have had my car for more than a decade. Actually, it has been 15 years. My car has been very reliable. Once I paid it off I decided I did not want another car note.  That was almost 10 years ago. Here is a snapshot below of my last payment. It may become my screensaver.

I have been able to do so much without having that payment hanging over my head. I decided to start paying off my credit card debt, invest more, get Lasik, join a gym, and get another degree. Basically, I invested in myself. I do not regret not purchasing a new car for one second.

Here is my take on it. Why stretch yourself financially, for a car you desire? Ask yourself if you would still be willing to do that, if the most popular car in the world among the money elite was a Honda? Financially savvy folks know that a fancy set of wheels is pricey in more ways than one.

I was told that a rapper was discussing online about owning a Bugatti or some other luxury vehicle that has three radiators. If one goes down, it costs $90k to replace. Gulp! That’s a hard pill or repair bill to swallow.

I heard an NBA player say that he knew people that would buy Bentley’s, but then would stop driving them because they were not meant for everyday driving. The wear and tear was ridiculous.  Owners were shelling out tens of thousands of dollars on maintenance. Don’t believe me. I read an article by Forbes about unreliable luxury cars.  Apparently, I am not the only one who has noticed that every luxury car that glitters isn’t gold, but merely sold to those willing to fork over their hard earned cash.

That means you basically are driving a house on wheels for the amount you paid. Then after all that, still have to worry about thousands of dollars in repairs. And since this isn’t your run of the mill car, you have to go to specific repair shops. Usually, this means repeated trips to the dealership. Who has time for that?

Luxury cars seem not only to come with a high price tag, but also lots of headaches. I say this: if you can afford the monthly payments, maintenance, and can hire a mechanic or chauffeur to repair or take your car in for service at a moment’s notice, then you can get the car. If not, you’re better off sticking to something you can take to Jiffy Lube.