New Tahoes, Green Rolexes and Climbing Mountains- by Larry She
The path to Material enlightenment is a three Phase journey. Like many of the most important lessons in life, most people have to progress through the process themselves to truly learn the lessons. The lucky ones move through the phases quickly, those less fortunate never make it past New Chevy Tahoes.
New Chevy Tahoes
Most peoples' Material lives start modestly. When you have nothing, most people want everything that everyone else has – thus the cornerstone of the phrase “keeping up with the Jones”. Though you would never know it by the number of new and expensive vehicles that are on today’s roads, ordinary folks have no business driving $40K SUVs. A $600 per month car payment on a depreciating asset is a financially disasterous move. Upgrading cars every couple years to keep up the impression of financial success further puts you behind. If you make $40K per year, $600 per month is $7200 per year, which may represent as much as 25% of your income. Just plain dumb.
Green Rolexes
Assuming you’ve moved past the zero equity trap of Phase 1, when you start accumulating wealth, most people want things that nobody else has. Everywhere you look, the commercial world has developed limited edition or specialty products that are highly sought after by many. This can be a fun time in life, but can be a very expensive phase. At some point in this phase, you can accumulate too many toys, and your things rapidly become beasts of burdens. At the tipping point, you quickly realize that the accumulation of things – even really nice things, no longer bring you joy.
Mountain Climbing
When you have finally reached material enlightenment, people stop collecting things, and start collecting experiences. Folks of means realize that the most precious commodity in this world is time. Climbing mountains, racing cars, even spending quality time with family and friends are the best way to spend your finite resources. The type of car you drive and the type of watch you wear no longer matter. You start valuing better quality food, and exercise more.
Armed with this new perspective, why not just skip Phases 1 &2 and be content with experiences? Well, it really isn’t that easy, at least not for this author. I’m stuck between Phases 2 and 3. I do like my Green Rolex and matching green sports car, but I think the lesson here is awareness. At the end of the day, you are still human, and we all like having nice things. But, when making decisions, especially ones that have big financial impacts, be aware of what you are doing.
I encourage you to drive the old Tahoe till the wheels fall off, forgo the Rolex, and take the family on a nice annual vacation.
New Chevy Tahoes
Most peoples' Material lives start modestly. When you have nothing, most people want everything that everyone else has – thus the cornerstone of the phrase “keeping up with the Jones”. Though you would never know it by the number of new and expensive vehicles that are on today’s roads, ordinary folks have no business driving $40K SUVs. A $600 per month car payment on a depreciating asset is a financially disasterous move. Upgrading cars every couple years to keep up the impression of financial success further puts you behind. If you make $40K per year, $600 per month is $7200 per year, which may represent as much as 25% of your income. Just plain dumb.
Green Rolexes
Assuming you’ve moved past the zero equity trap of Phase 1, when you start accumulating wealth, most people want things that nobody else has. Everywhere you look, the commercial world has developed limited edition or specialty products that are highly sought after by many. This can be a fun time in life, but can be a very expensive phase. At some point in this phase, you can accumulate too many toys, and your things rapidly become beasts of burdens. At the tipping point, you quickly realize that the accumulation of things – even really nice things, no longer bring you joy.
Mountain Climbing
When you have finally reached material enlightenment, people stop collecting things, and start collecting experiences. Folks of means realize that the most precious commodity in this world is time. Climbing mountains, racing cars, even spending quality time with family and friends are the best way to spend your finite resources. The type of car you drive and the type of watch you wear no longer matter. You start valuing better quality food, and exercise more.
Armed with this new perspective, why not just skip Phases 1 &2 and be content with experiences? Well, it really isn’t that easy, at least not for this author. I’m stuck between Phases 2 and 3. I do like my Green Rolex and matching green sports car, but I think the lesson here is awareness. At the end of the day, you are still human, and we all like having nice things. But, when making decisions, especially ones that have big financial impacts, be aware of what you are doing.
I encourage you to drive the old Tahoe till the wheels fall off, forgo the Rolex, and take the family on a nice annual vacation.
