I was driving down the highway and saw a yellow Lamborghini. At this point in my life I cannot afford a Lamborghini, but would like to have one. I also know owning a Lamborghini at this point of life is not realistic. An exotic sports car such as a Lamborghini can easily cost upwards of $200k. If you finance $200k for 60 months at 5% APR, your payment is roughly $3,700 per month. Your insurance premiums are likely to be as high as $3,500 per year. Even though it was be incredible to own a high performing sports car, this money can be better utilized somewhere else (i.e., paying off my mortgage, paying off student loans, investing in 401k). It would only make sense to purchase an expensive car such as a Lamborghini, if I had no debt and was bringing in $1million per year and still I would be skeptical if I should purchase it.
The smartest people I know today from a financial perspective would not spend their money on exotic cars or luxurious yachts. They invest their money to grow their financial portfolio. Many of them have driven the same car for years and do not have payments on them. If anything happened to their careers or businesses, they would not need to worry about losing everything they worked for. Although we are easily amused when we see expensive cars or luxurious lifestyles, we need to look at the whole picture. Are these people driving these cars really financially stable? They may be, but they are surely not investing their money wisely. I strive to be discipline with my money because I hold myself responsible for everything that happens in the world of money. If I purchased a luxurious car and could not afford my bills, then I would have failed myself and my family. This failure could have and should have been avoided.