A fund manager explains his rule: never buy a car that costs more than 5% of your investment portfolio. He'd need $10 million before buying a supercar. Both speakers argue that if you can't pay cash, you can't afford it, and credit cards trap younger people in debt.
If you can't pay for it in cash, means you can't afford it. The best advice I got, put that credit card away, rip it up, throw it away. Why not? Because you're gonna be broke by the time you're 40 paying all those interest rates and keep paying the minimum, keep paying the minimum, and you'll never get there. And I have a 22-year-old daughter. I feel bad for her because it's tough for them to make it. Prices are way too high, incomes are not enough. It's tough to save these days.
First off, love the Canada Goose. As a fellow Canada Goose fan, well done on the Canada Goose jacket. Number 2, I've heard some people say you gotta pay for it cash multiple times to be able to buy it. Now you need a car to drive, your basic car, but I'm a I'm a car guy. I love cars. I would use every dollar I ever owned in cars. So I had to set some rules for myself years ago. The rule I set was of my investment portfolio, okay, my investments. My cars have to be less than 5% of that portfolio. Meaning, I have to be able to buy that car 20 times. That's the rule I had to set on myself because I would literally buy cars. I want to buy that supercar, man. I got to have another $10 million in my investment portfolio before I can go and buy that car.
