“And if I had a million dollars, I'd buy you a k-car (a nice Reliant automobile)” – Bare Naked Ladies, 1988
Our son Ashton turned 16 in June. Which means we’ll soon have four drivers living in our home. With limited public transit available to us, we’re already scoping out the market for a good, used vehicle.
Ashton will get the same deal as his older brother did. We’ll buy a new-to-him reliable car; he’ll be responsible for insurance, gas, and maintenance. We’ll maintain control through ownership, but Ashton gets his longed-for freedom and independence. This arrangement has always worked well in our house (Our son is at the wheel, but we hold the reins). As parents and owners of the car, we can pull back or loosen the reins. The driver earns rein-loosening as he matures and proves he’s responsible. Same as with David, there will be no overnights with the car or taking it to parties.
While we look for a “nice, reliable (not Reliant) automobile,” it has me thinking about cars, wealth and affluence.
What does the car you drive say about you?
Does your ability to own or lease a top-of-the-line Beamer or Mercedes mean you’re “wealthy”? Maybe it means you’re a sucker for prestige and appearances while subsisting on peanut butter sandwiches (not that there’s anything wrong with peanut butter sandwiches).
Does Affluence = Wealth?
I don’t think they’re equal, nor mutually exclusive.
According to The Millionaire Next Door: The Surprising Secrets of America's Wealthy, by Thomas Stanley, the most common make of car owned by millionaires in 1996 was Ford. In 2006, it was Toyota. Stanley was making the point that you’ll never guess someone’s net worth from looking at the car they drive.
In that same vein, I’ve found it challenging to convince some truly wealthy individuals to come onto my podcast I’m a Millionaire! So Now What? Many of these individuals are happy to fly under the radar. Why is that?
My own ‘luxury car’ experience hints at an answer…
In 2008 I upgraded from the family Dodge Caravan to a fully-loaded, new Toyota Camry. Not what most people would call a luxury car, but it was luxurious to me: leather seats, fantastic audio system, moon roof, heated seats. It was a big deal.
What I’d always dreamed of driving was an Audi. But in my mind, that level of luxury was an extravagance and all about status, which was contrary to my upbringing – modest, and firmly established by a feeling of lack, lack, lack.
Fast forward to 2013, when I purchased my first, true, luxury car. A nearly-new, 2012 Audi, A4 SLine. I dare say, I loved that car. It was a joy to drive.
After I bought it, I braced myself for a few side comments from family. Maybe it was the story in my head and feelings of guilt for betraying my stoic upbringing, but I can remember an uncle observing “An Audi, must be doing well.” And I remember the first time I drove into my father’s long laneway. I held my breath awaiting his commentary. Except he is the least judgmental person on the planet, so of course he said nothing. All that guilt, the expectation that I’d have to defiantly explain myself, bracing for judgments and whispers…. That was all in my head.
Could anyone consider that purchase an extravagant outlay of funds? Maybe… but with a country-to-city commute most days, I never regretted buying that comfortable, drivable, enjoyable car.
Sometimes we’re averse to paying for things even when we can afford them, simply because of what we think others will say about us, or what we know we’ll say to ourselves.
Which brings me back to Ashton and his car. I know he dreams of driving a Ferrari, and knows he’ll end up in a small, used, reliable car like his brother’s. I do believe he will own a Ferrari one day, but until then, he’ll be grateful for the wheels – any wheels.
Sarah Fallaw continued her father’s legacy of studying the surprising habits of the regular-grade wealthy by co-authoring The Next Millionaire Next Door. And I’m delighted that she has agreed to be a guest for I'm a Millionaire! So Now What? (listen & subscribe here) – so stay tuned for that!
In the latest version of the book she writes, “…happiness in life has little to do with the brand or price of the watch one wears, the stores one patronizes, the make of car one drives, or the brand of vodka one consumes…Ignoring trends, being indifferent to the views and influence of the herd, and living below their means are the hallmarks of those who are good at transforming income into wealth. As a result of this lifestyle, they have greater freedom and security to change jobs, start their own businesses, and take chances.”
Which is EXACTLY the reason I created the Roadmap to Real Riches. If you aspire to greater freedom and security, the Roadmap points you in the right direction. When it comes to what kind of car you choose to afford, it will be clear from your Roadmap whether your choice is in line with your long term goal of real riches.
When you’re ready to optimize how you spend, save, and share your wealth, we will be here to support you. Visit colleenoconnellcampbell.com – specifically the Real Riches Roadmap tab to apply for your Prosperity Discovery Session anytime.