I’m going to deviate from my normal type posting to discuss something I find to be the utmost of importance and I read an article lately that reminded me just how important this was.

Its obvious to me, but what I find is that people have a very hard time staying Cash Flow Positive. I was inspired by an article I read on Get Rich Slowly about “The Power Of Positive Cash Flow” to share my experiences with money, where I was and where I am today.

I’ll be the first to admit I took things for granted when my cash flow was sky high, I was living w/ 3 other guys and my rent was only $330/mo. After I graduated from college I purchased an Audi TT to replace an old beat up Mercury Cougar I had had because I got in a collision with the old car (a Chevy Lumina) I had since 16. It had been my goal since early in college to get that car, so I got one. It was my reward to myself for graduating with a degree from WPI so I got it and paid ~ 23k for an ‘02 Audi TT Roadster with 33k miles on it. I was that prototypical kid that simonized his car constantlly, was irritated when it was dirty, avoided potholes like it was the plague and generally acted like it was a fragile fabergé egg. It was a great car, but after a while I found that I didn’t own the car it owned me. It was impractical as a primary vehicle, the trunk space could barely fit a suitcase, so as time went on I wanted to part with my beloved TT. I ended up selling it 1 year later on eBay for $18k. 1 year, $5k depreciation.

Around this time I really wanted a motorcycle. I think because in my neighborhood there were always people riding dirt bikes and my parents never let me get one. So I decided I wanted to get a motorcycle, but before that I figured a truck would be the most practical way to go. It’s bed could hold a hell of a lot of suitcases and a motorcycle :). I also wanted to be able to drive around more than 1 passenger. I researched quad cab pickups and ended up paying $16k for a used ‘02 Dodge Dakota.

Next I got my motorcycle license, then I got my bike - a 2000 Buell Cyclone M2 for $4200. This thing had some power and I promptly dropped it on the road because I dropped the clutch too quickly (did a wheelie I couldn’t hold on to). I sold the beat up motorcycle to a neighbor who was some what of an motorcycle aficionado/gearhead for $2000 cash. 2 months, $2200k depreciation.

As time went on I had no use for the truck aside from the occasional mountain bike adventure. My fantasies of being a rebel subsided quickly and the 14-16 mpg my truck would get was driving me nuts. So I looked into replacing THAT with a super fuel-efficient vehicle that got the job done. This led me to my next purchase, a 2006 Honda Civic EX that I paid $21K for, and they took my truck as a trade in which they only paid off what I owed the bank @ the time - I think it was around $12k, another year or so - $4k depreciation.

Now I have my Civic, I love it, and I’m driving it into the ground and I don’t care about “looks” or “flashiness”, just cost. Although the major reason for getting a new civic and not a used one were the looks of the ‘06 model compared to an ‘05.

So in total since graduating college in ‘03 I’ve spent about $11k on what were essentially big boy toys with nothing to show for it. I’m over it now and I’ve completely changed my perspective on “stuff”. It didn’t do much for me and I’m glad that I learned that lesson early in life as opposed to later.

I’m much more conscious now of how I make and also spend my money. Reading sites like Get Rich Slowly are a great resource and I highly recommend checking it out.

There’s a saying I absolutely love - It’s not what you make, it’s what you keep.

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