Buying a New Car
I want to buy a car.
I want to have my freedom.
I want to be an entrepreneur.
Every decision we make has an opportunity cost, money spent here means less money there, time spent on one project is less time on something else.
As a car lover, ogling at beautiful motors is a daily thing, I follow several Instagram accounts for cars, read snippets from the industry and hold a few shares in Ferrari. But the car I own is a 12-year-old black Ford Fiesta, coined the “antique” by my brother, “rust bucket” by my father.
I would love to replace this car with something new, I’ve even been to dealerships and picked out the new motor I fancy (a BMW or Fiesta ST). But buying a new car on a hefty PCP deal, like so many people my age do, is not aligned to my individual goals, the opportunity cost would be huge.
I have accepted, to maximise my chance of success at my long-term goals, the things I really care about, I must forgo short-term dopamine boosts like buying cars. The reality is, my current car works just fine, it gets me from A to B in the same traffic each morning that a new one would.
The lesson for anyone reading, particularly those who are young and just starting out their careers, please don’t buy a new car. New cars keep poor people poor. Instead, focus your money into things that can make you more money (stocks, shares, ISA’s) or simply keep that money for a side project or future venture. If you’re in the empire building business, new cars come after success, they are not a precursor to it.
