I’m Not as Broke as You Think
by: Dave Ozment
Some say that status is an important quality or characteristic for people. I would argue that the appearance of status is much more important.
When I wear my plain Levis jeans I’m not making the same statement as someone in a more fashionable brand – a name I would not even know. In appearance, our relative affluence may seem out of alignment.
When I drive my 12 year old get-out-of-debt-car, I may appear on the brink of poverty to someone rolling up in their new BMW, Benz, or SUV – especially if the green bean is gasping smoke as it is sometimes want to do.
But, as the saying goes, beauty is only skin deep. There is no Visa receipt in the back pocket of my jeans nor is there a payment book tucked away in a desk drawer – only a clear car title in a lock box.
I read recently about a conversation between the driver of a 19 year old van and the driver of a much newer full size pick-up. The conversation started in awe over the age of the van but ended in perceived insult as the van driver jokingly commented that the van’s “payment is right”.
The story resonated with me because the perception of affluence was not in accord with the reality of financial well being.
Inserting my pervious and current fiscal selves into the scene, I – as the truck driver – want my ability to finance such a rich vehicle to equate to your recognition of my wealth. I want you to want a truck like mine but to not be able to afford it. That you simply elect not to make my same bad decision crushes me twice – first that you have the fortitude to refuse self and drive a heap, on-lookers be damned, and second, you’re not strapped to a payment the size of my head for the next 3-5 years.
In this mano a mano showdown the van driver wins every time. His vision is set on a prize more valued than empty and fleeting glances of approval. His end game is freedom and security… and he’s not as broke as you think.
Special thanks to Jason at Frugal Dad for providing the inspirational spark on this article.
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If you have cable TV/cellphone/broadband Internet/Xbox/Wii/PS3… you’re not broke.
If you can afford beer/cigarettes/lottery tickets… you’re not broke.
A colleague once put it succinctly: America will take every penny you have… if you let it.
Too many of us are as broke as we choose to be.
Ah, I like your way of thinking… we are often as broke as we want to me. We integrate so many things into our budget without thinking about it and then complain about not having any money….
Thanks for visiting and commenting today. I appreciate it.
Dave
Great post. It reminds me a lot of the book “The Millionaire Next Door”. Truly, appearance can mean absolutely nothing when it comes to individual wealth.
You’re exactly right… appearances are only skin deep, often those ‘artificial’ appearances are masking (or driving) insecurities. Rather, working from the inside out (financially) ensures security and long term comfort even if at the expense of a short term image.
Thanks for visiting and commenting!
Dave
This piece couldn’t be more right on. SO SO many people in our culture think that if they can afford the payment, they can afford the…house, car, etc. Why have we lost our long-term focus as a culture? Yes, the new leather, new car smell, can be tempting. But when you look at the cost associated with those small pleasures…no thank you!
Rachel Porter’s last blog post..Money Management 101:Talking with Your Spouse About Money
Thanks Rachel, I appreciate your response. Often the trappings of success (or perceived success) are just that – trappings. I think we’re lulled to sleep with “easy monthly payments” only to awake handcuffed to a job or career we don’t like but at the same time scared to death of losing the job because of our monthly obligations.
Since I’ve started attacking my debt and as I approach the end of the (non-mortgage) debt tunnel it is so liberating. There’s no way I’d want to go back… so if that means I’m driving used or watching the game on a tube-style TV (rather then flat screen) then I’ll gladly take that exchange.
My freedom for a new car… heck no!
Hey, I enjoyed your interview with Baker and THANKS for stopping by to read and comment!
Dave
Dave,
I have several vehicles, all of which are fancier than my wife or I need. I generally invest in a vehicle only if there is a significant tax advantage for one of my businesses to do so. That being said, there are days it would be great to have the cash back that I have plopped down on these rides…in Jan 2009, I probably could have taken that money and doubled it in the market…then bought some cars, and still have 100K in the bank. Hind sight…
Brandon’s last blog post..Tips for starting a business in Michigan
Dave, good stuff. I drive a 2008 car, but it is paid for in full and it was the day I bought it. I can do this because I’ve bought what I could afford my whole life. I know so many people who are living above their means. They are chained to the rat race and slaves to their debt.
Stephen – Rat Race Trap’s last blog post..Your Brain on Food and Supplements – Dopamine
Thanks Stephen… and you are right on target too… I think being able to afford a car is a function of what you can comfortably pay cash for (comfort being a function of preserving your emergency fund or other obligated savings). I used to not think that way but I’ve grown and evolved my thinking. And so if I’m driving an older car now it’s because I want to drive a newer and nicer car later. The fact that you are already ‘there’ is a great inspiration to those of us on our way.
Thanks for sharing!
Dave
When I was just getting started in Real Estate, I drove a little $1000 car (I still do). I was embarrassed going up to meet potential clients, so I would park around the corner and walk down to the house.
If I was meeting a business client at a restaurant, I would park in the far back of the lot and walk, so they wouldn’t see me pull up.
All that trouble, and man am I glad I was able to avoid new car fever. One of the best temptations I was able to resist!
Baker @ ManVsDebt’s last blog post..Giving While In Debt [Video]
You make a good point… so many people justifying making a big car purchase for appearances of the needs of someone else. I can see that having a nice luxary car could help in some situations but my having a cool million in savings would help too…
The point is sometimes we sacifice because we have to and sometimes we sacrifice because we want to… but in both cases we’re better for it in the long run… as you so well know!
Thanks for commenting!
Dave