I pay my new adviser a monthly retainer, and she doesn’t care if my money is tied up in the sharemarket or in a new Ferrari. If I’m happy, if I’m solvent and if I’m going to be able to continue to live comfortably for the foreseeable future (and pay her monthly retainer), her job is done and all is well between us.
My new adviser has given me a fresh perspective. Investing doesn’t have to be just about accumulating more and more; it must be about something significantly more holistic: living well. For me, and I imagine for many readers of Madam Wheels, “living well” means being able to own and drive great cars and actually having some fun.
What my cars will be worth in five or 10 or 15 years’ time or longer is anyone’s guess, and really not important. I do not rely on them to satisfy my financial needs, I need them to satisfy my hedonistic tendencies. It’s a mistake to confuse those needs, and it’s a mistake to let one completely overwhelm the other.
So yes, while it’s obviously better to buy something for the best price you can, the reason you’re buying it is also important. If I could not buy a car unless I could be sure I could later sell it for more than I paid, I might not buy it in case it’s worth less when I need it most. But while it’s in my garage its value is apparent whenever I need it. How do you put a price on that?