Revving Towards Financial Freedom

I should have known better:

When I was 24, the idea of owning a car with over 300 horsepower seemed like a distant dream, and the aspiration of becoming a NASCAR racecar driver lingered in the mist of possibilities. I felt invincible, on top of the world, and wanted everyone to recognize that I was a young force to be reckoned with. Despite making a decent income, adjusting for inflation, there wasn't much to show for it except for the beautiful sports car I now owned.

Dreams in the Rearview: The Pitfalls of Chasing Image Over Practicality

The decision to splurge on this high-performance vehicle stemmed from a series of unfortunate events involving my 1998 Honda Civic, which was stolen twice in just three months. I justified the purchase by telling myself that I deserved this car as an upgrade. The notion of "treating myself" prevailed, and although the purchase wasn't entirely out of my financial reach, it did represent a bit of a splurge.

However, what I failed to consider was the practicality of my choice. The escalating cost of gas and the increasing distance I found myself driving between church, my full-time job, and a second job became unforeseen challenges. Living approximately 30 miles round trip from my full-time job, another 20 miles round trip to church, and yet another commute for my second job, the reality of my daily travel demands soon began to overshadow the initial thrill of owning a powerful sports car.

Every day, I found myself covering more than 50 miles on the road, consuming about 2 gallons of gas each day. With no work-from-home option available at that time, I had to fill up my tank twice a week. The pinch on my budget became palpable when the cost of gas surged by $2.00 per gallon. It was then that I realized the collective expenses of my car payment, gas, and insurance were surpassing the combined cost of my rent and utilities.

Navigating Financial Strain: The Wake-Up Call That Sparked Change

This financial strain led me to reevaluate my priorities, especially as I aimed to save for my first house. I contemplated the possibility of adjusting my monthly tithe to make ends meet. In my internal dialogue, I found myself justifying this decision with a self-centered perspective. I reasoned with myself, telling me that I deserved the luxury of a nice car, and the convenience of getting to work faster justified the expense. The fear of societal judgment also played a role – what would people think if I let go of this car? There was a desire to uphold a certain image, to convey the impression that I was thriving and successful. These concerns, coupled with familial expectations, kept me entrenched in a mindset that I deserved these luxuries and could stand on my own with a somewhat arrogant attitude.

Seeking a practical solution, I made a logical move – I relocated to a more affordable place closer to my full-time job. This adjustment allowed me to cut down on my daily commute, although it meant longer drives to church and my second job. Originally, the second job made sense because of its proximity to my previous residence, but now it seemed inconveniently distant from both my full-time job and the new place.

While the move did save me some money, I realized that driving to my second job from my new residence still incurred unnecessary expenses. That's when the idea struck me – I should look for a new second job closer to my current location. I swiftly secured another job, but the pay was a mere fraction (1/8th) of what I earned in my previous role. In the process, I also considered finding a new church closer to my new home to alleviate the financial strain caused by gas expenses, allowing me to resume regular tithing and continue saving towards my goal of buying a house.

Although the job search led me to explore various opportunities, I struggled to find a church that could match the sense of belonging I felt with my current church family. Faced with this dilemma, I recognized the need for a more substantial income and decided to pursue another full-time job to enhance my financial prospects.

The straightforward solution to my financial dilemma would have been to part ways with the high-maintenance car and opt for a more fuel-efficient option, which would undoubtedly have alleviated some of my financial stress. However, the decision to hold on to the car went beyond mere practicality; it was about maintaining a certain image associated with that particular vehicle. I was determined to project a perception of success, even if it meant sacrificing financial stability and the things I felt strongly about.

Trading Flash for Freedom: The Liberating Decision to Drive Authentically

The pivotal moment came when I made the choice to trade in my car for a more economically sensible option – a Toyota Corolla. In that transformative moment, I realized that the image I had been so intent on preserving didn't hold the significance I once attributed to it. I was liberated to live authentically, understanding that my worth as a person was not defined by the type of car I drove. Interestingly, by making this change, not only did I save more money due to reduced gas expenses, but I also managed to secure a new job that paid 26% more, along with a bonus. This positive turn of events meant I no longer needed a second job to pursue my goal of acquiring a house.

Beyond Material Worth: Discovering True Identity and Financial Stability

Reflecting on this journey, I came to the profound realization that my blessings stemmed from understanding that my identity was not tied to material possessions. The flashy 350Z didn't define me; instead, I recognized the importance of practical stewardship of my money and making decisions that aligned with my true values.

Below are a few tips that I label BBI (Budget, Build & Invest)

1. Budget Mindfully (B):

   • Create a Budget: Develop a clear budget that outlines your income, expenses, and savings goals.

   • Track and Adjust: Regularly track your spending against your budget and make adjustments as needed.

2. Build Emergency Savings (B):

   • Establish an Emergency Fund: Set aside money for unexpected expenses to create a financial safety net.

   • Automate Savings: Make saving easy by setting up automatic transfers to your emergency fund.

3. Invest Wisely (I):

   • Understand Your Goals: Clearly define your financial objectives and understand your time horizon and risk tolerance.

   • Diversify Investments: Spread your investments across different assets to reduce risk and align with your goals.

   • Regularly Review and Adjust: Periodically review and adjust your investment strategy based on changes in your financial situation or goals.

By following the BBI approach—Budget, Build & Invest—you can simplify financial stewardship, making it more manageable and effective for long-term financial success. Learn from my lesson and don't bite off more than you can chew because you are afraid to adjust your lifestyle to what you really need at that time. In the long run you will not have to drive a corolla unless you want to.