Who says a car or bike is a bad investment?

2 minutes read

Bought my car for 80 000 all in and sold it for 100 000, after riding it for 2 years plus.

Bought my bike for 55 000 and sold it for 50 000 after putting 30 000 km on it, and having it for 3 years.

You are going to think I say buy a car and bike… Maybe you will think I always say a car is liability and now I boast about it. Well you are right haha.

Both of these vehicles I bought with cash… So the lesson is to have money available when deals come your way.

10% RULE

Learned this from the book called “The richest man in Babylon”.

There were many things in the book that struct me, but the one that stood out was the rule of saving at least, a minimum of 10% of your income. This will allow you to have money for opportunities.

Ideally you want to put away more, but this will get the ball rolling.

Let's break it down; When you have cash and money it is not just about opportunity that might come your way.

It is also that you get more confidence, and believe in yourself. You become a person that other people want to be around with.

If we have money put aside we also might help others if there is a need for it.

 But the biggest lesson from having money is your financial education!!

What do I mean by this? Think about it… Well this is what happened to me over time.

As I got more savings and money, I needed ways to keep it. I needed ways to transfer it, I needed to pay tax, I needed to know how to make more money with it, I needed to learn investing, I needed to know how to not waste the money on dumb purchases.

All this is shaping your financial education. It almost forces you to want to learn more on how money, and the economy works.

It is actually fun!

GO AHEAD AND TRY

It is never a bad thing to have money, but it is also not easy to keep it. This is where the magic happens.

When we have some money then an emergency happens. When we get money then all the sudden there is a new technology on the market. When we have money then that holiday we deserve so much sounds very doable.

But this is where the trick lies… Don't fall for the wimps and shiny objects that will not bring you long lasting value.

This is also not a short term test. Each month 10% will take time to accumulate a substantial amount.

But as the saying go “The best time to plant a tree was 20 years ago, and the second best time in now”

Let me know, by replying to this email, what you think.

Keep saving and talk to you next week

-Stefan