Just a warning to all you married guys. I had one of those discussions last night. My wife wants to buy a new Mercedes Benz. It is not like she needs a car. We both drive late model Jeep Grand Cherokees. I asked her if she knew what that would do to our purchasing power right now. She said “yes but I have a birthday coming up and we are making plenty of money”. I am on my way to getting 20 SFHs. As soon as I get there she can get whatever she darn well pleases. I see our monthly income and see a way to get more houses, she sees it as money sitting around.
This is the one thing that cracks me up about many realtors. I understand that they have to set a certain personna of success, but too many live above their means and limit their potential for growth and investment opportunity.
Then again I know of a local mortgage company and these guys are making a killing, but drive hondas and toyotas. They talk about the “cost of missed opportunity”
Tying up your assetts in something that has no possible return.
Then again, maybe she won’t get the Mercedes for her birthday. You get the 20 houses and she gets it for Christmas…
I don’t know how long you have been married or if your wife also adds to the family income. But I find this kind of behavior selfish. Has she always been spoiled?
It’s time to sit down and teach her about money and goals.
When I was married for over 20 years, we would write down our goals every year, on New Year’s Eve. We wrote down our personal and business goals for 6 months, 1 year and for 5 years.
We agreed to save our extra money and work together to reach our goals as a married couple. Our child to be born was on that list, our new house overseas was on the list, etc.
We accomplished all our goals this way because we were on the same page.
I was driving a Pinto when we first met and on my 40th birthday, he surprised me with a new MBZ sports car. I never asked for it or expected it. He bought it because our hard work had finally allowed it.
Try to develop a plan for your future together as a team. Help her understand that living frugally will pay off in the long run. Then a new expensive car will be in order as your reward for being so disciplined.
Good luck!
Yep I have pretty much spoiled her. She buys whatever she darn well pleases. My day job pays really well and we pay cash for anything she wants. That doesn’t bother my credit score while I am accumulating my houses. She was looking at my accounts the other day and just saw a pretty large balance and thought it would go good as a down payment of a Mercedes. I would have to finance that and my debt to income ration would not handle a $50k car payment very well right now. That could stop me for up to 2 years from buying more houses. But you guys should see her. She is so pretty I just can’t resist giving her whatever she darn well pleases.
I should buy her a Mercedes and buy myself on of those 42 ft Hunter sailing yachts. Just kidding.
I should be finished with my 20 SFH accumulation phase of my strategy this time next year. We can all buy some stuff then.
i guess the real question is when are you going to start living the good life???
Thats my question as well.. I see plenty of investors living on a frugal budget..
my thought was the younger i spend money the better.. something reasonable like 50k equity deal I'M BLOWING 12G'S and taking off to an island for a few months..
or maybe a mercedes.. hey your successfull look like it...
just make sure its three yrs old so the value doesn’t tank ;D
I have been married almost 11 years and understand what you are faced with.
The only thing that I might suggest as a compromise is Certified Pre-owned. These cars typically look Brand new, have very low miles and come with amazing extended warranties.
The only people that will know that you didn’t buy it brand new are you and your wife, and you will save around 40% off of the price of a comparable new model.