If I gave you $10,000 today, what would you choose to do with it? Would you put it in the bank, go shopping, pay off bills, or maybe donate it? How does someone choose to spend $10,000? Well, how do you make any of the choices in your life? It usually is not just random but rather based on some reasoning for the benefit of yourself or someone else. Most people will choose to spend the $10,000 based on their priorities at that time, such as paying bills is more important to someone rather than shopping. However, maybe someone has a million dollars in debt that they have been diligently working to pay off for a long time and realize that they really could use a vacation right now and then that would be a higher priority to them instead of applying that to their debt.
The reason I bring this up is that people seem to forget this logical reasoning sometimes such as the case of buying a car. If you were to think about the bare minimum requirements necessary for your overall transportation over the next few years it would probably be something like this:
– Can you accommodate a certain number of people?
– Does it have heat and air?
– Does it require much work ( in good shape)?
– Does it have low gas mileage?
– Is it affordable?
This would be your necessities given your situation on how you plan to use your vehicle. Given the sample list above we can find cars available all over for pretty low prices usually between $5,000 to $15,000 depending on our needs. However many people these days seem to be buying $20,000 to $25,000 vehicles. So that's a price difference of about $5,000 to $20,000 more than what's needed. If u can buy what you need for $10,000 then why spend $20,000? Ask yourself what are you getting for that extra $10,000? More horsepower? For what? Leather seats? For what?
I know all these extras sound great and we all would love to have them and be able to show them off. You need to ask yourself what are you giving up? What else could you have spent $10,000 on? I think this is what salesmen do. A salesman makes you forget about your other priorities while making the $10,000 extra seem less significant. Are leather seats, extra horsepower, bigger truck more important than retirement funds, credit card debt payoff, or kids college?
Think about it like this, if I gave you $10,000 today, would you spend that on leather seats and a bigger engine or would you have something better you would rather spend that on? This can relate to many other things that we spend money on as well. So before you go all in and get the biggest and baddest, ask yourself if it is worth the extra money.
What would you do with 10 grand? I want to know what you think is the best way to spend $10,000. Leave your comments below.