Comments on: Ultimate Driving Machine

By: MM101 Summary «

MM101 Summary « — Mon, 27 Apr 2009 06:07:23 +0000

[...] have been looking at our MM101 activities ranging from our housing, to our choice of transportation, retirement accounts, debts, income statements and net worth statements. These MM101 building [...]

By: Spending your Net Worth « How to Make 7 Million in 7 Years™

Spending your Net Worth « How to Make 7 Million in 7 Years™ — Fri, 27 Feb 2009 08:36:05 +0000

[...] Spending your Net Worth Published February 27, 2009 net worth Tags: 7million, 7million7years, Investing, Making Money 101, millionaire, money, Rich, Saving, Starting Out, wealth Currently, over at the 7 Millionaires … In Training! ‘grand experiment’ (which is progressing quite nicely, thank you … the lab rats are being well fed and are generally spinning their wheels in the right directions – clockwise. Always clockwise) we have been looking at the 7MIT’s cars and their attitudes, thereof. [...]

By: Car or curse? 7 case studies … « How to Make 7 Million in 7 Years™

Car or curse? 7 case studies … « How to Make 7 Million in 7 Years™ — Tue, 24 Feb 2009 09:01:07 +0000

[...] Mark – the savvy investor – shows the other BMW-lovers how to buy a good used one off e-Bay and negotiate the price lower AFTER you have already ‘bought it’ … nice! [...]

By: Where do all these rules come from? « How to Make 7 Million in 7 Years™

Where do all these rules come from? « How to Make 7 Million in 7 Years™ — Mon, 23 Feb 2009 10:14:19 +0000

[...] sense to me, and some that I had been following without even realizing it, just like the rules that Jeff questions: Where are all these rules coming from? Did I miss a bunch of information in the [...]

By: Adrian

Adrian — Mon, 16 Feb 2009 21:31:32 +0000

@ Mark – the 5% Rule is for ALL of your ‘stuff’: car/s, jewelry, electronics, furniture … yes, and those ‘valuable’ Wii’s and PS3′s. Together with the 20% Rule, it’s designed to keep 75% of your assets in real investments at all times.

BUT … the nature of true assets (appreciates) and ‘stuff’ (depreciates) actually allows us to SPEND more on ‘stuff’ every so often than you may at first realize. Life is meant to be rewarding AND fun

@ Jeff – the difference b/w what NWiQ and Robert Kiyosaki class as ‘Net Worth’ is best explained in this post:

http://7million7years.com/2008/03/06/calculating-your-investment-net-worth/

… again, our 20% and 5% Rules help you manage the differences b/w the two; that’s their power/simplicity/and (yes) beauty.

By: Mark

Mark — Mon, 16 Feb 2009 16:21:11 +0000

@Adrian – The 5% rule is definitely quite strict on what we can buy. The car is definitely one of the big ticket item. How about other items of value – jewelry, electronics, furniture? I tend to think my Wii and PS3 is of some value

@Jeff – Actually in both Quicken and NetworthIQ, cars are part of the asset column. But if we follow Robert Kiyosaki’s notion of asset then both our cars and primary residence are not.

By: Jeff

Jeff — Sun, 15 Feb 2009 12:21:53 +0000

Thanks Adrian.

By: Adrian

Adrian — Sun, 15 Feb 2009 10:45:23 +0000

@ Jeff – Yes, the ‘brochure’ is my blog (7million7years.com)

The basic idea is to have AT LEAST 75% of your assets invested (i.e. NOT in your home/car/stuff/etc.) at all times.

I have found that 4/5 of what’s left (i.e. 20%) is a very good number to have in your house (at most) leaving 1/5 of what’s left (i.e. 5%) for everything else, including your car:

http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/

By: Jeff

Jeff — Sun, 15 Feb 2009 04:20:56 +0000

Where are all these rules coming from? Did I miss a bunch of information in the brochure?

If I understand correctly, we have the 20% rule for home equity vs. net worth, 25% rule for mortgage vs. income, and now the 5% rule for cars.

I may need a pointer (link) to where that one was discussed. It seems like all you’d need to do is wait a bit and eventually your car will depreciate enough to be under 5%.

Does anyone really count their cars as part of their net worth? I view them more as a disposable item and not something that I try and calculate my net worth with.

Thoughts?…Jeff

By: Adrian

Adrian — Fri, 13 Feb 2009 23:56:59 +0000

@ Mark – You will want to get that conversation in writing, otherwise the Seller could decide to get nasty and complain to eBay (who will ‘pull’ your account) … otherwise, a great idea: lock in the sale => have the vehicle inspected => renegotiate the price!

Assuming that you have NO other assets, you are the first of the 7MITs to actually meet the 5% Rule. Congrats!

Just don’t go out and celebrate by buying a new(er) car

PS If my wife’s Lexus SUV Hybrid is any indication, the gas savings are WAY more than offset by the cost of the vehicle