Dave Made Fun of Us Tonight

I look forward to wednesday nights every week because of the classes and because I get to share with the class some of the financial experiences we have that relates to the seminar.

Tonight Dave informed us about the strong influential Marketing companies who flash 1,000's of advertisements in our faces every single day. We learned about how kids at the store want things now! but they're not the only ones who act that way, we as adults do it too. 

We buy tons of things on impulse like

 I want this china cabinet for my china that we never use so it can take up space in my house. Or, Oh shoot Super Bowl is at our house this year hurry let's go get a flat screen real quick. People these days have more t.v.'s in their house than # of people. In our case we have more computers in our house than people.
We have .......
1.iMac (desktop)
2.Dell laptop
3. Mac Book Pro
4. Mac Mini (that we hook up to the T.V. and strictly use it to watch Netflix, Hulu, movies)

I know, who needs that many computers?

Company's spend billions of dollars on advertisements and images. For example Dave talked about Apple. He said that Apple has this image that it is "cool". 

Every product they have it's associated with "If I have apple I'm cool" He also said it's really sucking in the younger kids but not really the oldies because they don't care to look cool.

So Shane and I are watching this and we were like, ????? we feel pretty dumb right now because we own 8 apple products.  We are the best example of retards who fell for Apples superb marketing that imbeds in our brains that their products is holy grail and they lure us into their spider web and rape us of our money. 

Despite our wounded feelings he told a really cool story that I must share with you.

This kid in his 20's opened up a mutual fund and his goal was when he reached $100,000 he would take out $40,000 to buy his dream car, a 1986 4 door classic Mercedes Benz. So finally 4 years later he reached his goal, he withdrew $40,000 in cash and drives his 1985 diesel Rabbit to the Mercedes dealership. Arriving in that car none of the dealers even give him a 2nd glance. So the kid approaches one of them and says "I'm here to buy a car." Then the dealer says "How you gonna pay for it?" (boy)"In CASH" (Dealer) "Which car was it you wanted to test drive?"

So the dealer even says he could take it home to really test it out. (They use to do that with T.V;s in the 50's back when they were new. The salesmen got you because the neighbors will come over to oooh and aaaah the new T.V. and  your impulse kicks in and takes cash back to the store, instead of the T.V.)

When the kid got home with the Mercedes the family was really excited, the neighbors told him "way to go on your new dream car!" But he still tried to figure out the numbers and how much more the $40,000.00 could make. The next day he drove the car back to the lot and told the dealer he wasn't going to take it.

12 years later he's driving a rolls royce and he pulls up to a 1986 classic Mercedes at a stop light. He rolls down the window and tells the driver "hey, that's a sweet ride. how much did you buy it for?" The driver says "$4,000."

The boy who has grown into a man doesn't regret not buying that car because he returned the $40,000.00 into a mutual fund by itself, he didn't add any more money and over 12 years the $40,000.00 turned into $300,000.00. 

Can you imagine that? would you give up your dream car now so that later you can have more than 1 of your dream cars?

His $40,000.00 could have turned into $4,000.00 dollars. Instead he stayed  patient and it turned into $300,000 dollars.

I thought that was a great story to learn from. THis program is not about saving to take all the money to your grave. It's about living super cheap and saving your hard earned work now so that later in 12 years we will reap the rewards, buy a great house, or whatever else comes with the rewards of saving and investing all my hard earned dollars.