In this post, we will understand how my love affair with a minivan is related to a powerful, smart money habit, but first, here is our disclosure.
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My Love Affair with a Minivan
I have a love for my minivan that is bordering on unhealthy. It is one of the best vehicles I have ever owned. I understand that they may not be considered trendy or stylish in any way. I am sure no one has ever exclaimed, “Wow, that’s a cool minivan!” as it passes on the street.
During my morning run, I found myself pondering why I enjoy having a minivan so much. This led me down memory lane. As I look back at my previous purchases, I have come to understand that I prioritize practicality and functionality over superficiality and flashiness.
That is why I love my minivan. It is so functional and costs so much less than an SUV. It is the same reason I cannot stop talking about my new handrails and low-flush toilet. I understand that some may find it amusing, but their practicality makes them so valuable to me.
People label me cheap because of my spending habits. Who cares? I prioritize spending money only on items that serve a purpose or meet a specific need. I believe in maximizing the value of every dollar. This doesn’t mean avoiding high-quality items altogether, but rather, it involves carefully assessing my needs and purchasing the best thing within my budget. This approach helps me prevent wasteful spending and is a smart money habit to adopt.
A Minivan: the Ultimate Symbol of Function
When I started searching for a new vehicle for my family, I initially looked at SUVs like many others. However, despite their hefty price, I was taken aback by their limited space and functionality. As a result, I switched my focus to minivans. I was pleasantly surprised by how practical and functional these vehicles are, particularly for families with children.
Minivans have ample seating and a third row that can be folded down to create a spacious cargo area often larger than SUVs can offer. You can also jump right into the back instead of reaching in. Another unbelievable feature is the sliding doors. No longer are you worried about your kids swinging the door open and hitting the car next to you in a parking lot.
These wonderful features may seem costly, but surprisingly, they are not. Minivans are often much less expensive than comparable SUVs, saving you thousands if not tens of thousands of dollars. You get all those useful features for a family vehicle at a lower price than owning an SUV with many features you rarely use.
How often are you going to go off-roading with your family? The 4-wheel drive will be useful during a snowstorm, but your kids’ events will be canceled long before you venture out. And how many days does it snow where you are? In this regard, the minivan is the symbol of function over beauty.
By making purchases based on usefulness, you can eliminate overpaying for things you do not need. Essentially you get more bang for your buck. People from the outside looking in may view you as boring and a cheapskate. So what? That doesn’t bother me. You have your priorities straight, with the ultimate goal being financial freedom.
Function Over Flash, A Smart Money Habit
As I continued my run, I had plenty of time to think and came to the epiphany that I have always chosen function over flash. I do not place much value on material things. The latest gadgets, nice cars, and fancy clothes mean little to me. In doing so, I always come across as cheap. That is fine with me, considering one of my heroes is Clark Howard.
Choosing function over flash means not paying for features you rarely use. It also saves money by helping you avoid buying things you don’t need, like a new car when your 8-year-old car is still running strong. Additionally, it can help you make wise investments by sticking to simple and “boring” options, such as an S&P 500 index fund, rather than succumbing to speculative trends or risky stocks.
I firmly believe every dollar I spend is a missed opportunity to save. Nowhere is this more applicable than when you’re deciding on which college to attend.
My College Decision, Functionality in Action
I did alright in school and got accepted to several colleges. However, I assure you none were even close to the Ivy League. Like many, I needed to take out loans to help pay for college. If I decided to attend an expensive college, I would need to take out larger student loans.
I decided to pursue environmental science. After weighing my options, I decided to go to an out-of-state college that offered generous incentives, ultimately bringing the tuition down to the same price as an in-state college.
At the start of my sophomore year, I decided to transfer to another college. I didn’t feel academically challenged. So once again, I was faced with another choice. This time it was between my home state’s flagship university and another out-of-state university. I chose the in-state university.
It all came down to the fact that where I got that environmental science degree didn’t matter much. It was not going to change my job prospects. What it would change was the amount of money I needed to borrow, and as a result, it would impact the amount I could save at a much younger age. The key point is I chose the affordable, functional option over the shiny and expensive one.
My choice of college kept my student loans manageable. Not being strapped with huge student loans enabled me to strike out on my own, save money, and pay off those loans quickly. Remember, college serves a particular purpose, so choosing one with a high return on investment is a smart money habit. Once again, it is all about function over flash.
Out On My Own, A Smart Money Habit is Formed
When I got out of college, I moved to the Boston area. I landed a job in my field and was soon working 60 to 80 hours a week. I had little time for anything other than eating and sleeping. When it came to getting an apartment, all I needed was a place to rest my head.
I found a cheap apartment living with three strangers on the other side of the Charles River. It certainly was not a nice place, and the location was rough around the edges. However, my rent was only around $400 per month. I could have easily spent more than double that to rent a room in Boston.
Looking back now, I can see that assessing my needs and choosing the most aligned option saved me a lot of money. I did not need an expensive apartment as I would never be there. I needed a place to sleep and shower. That one decision meant I could start building an emergency fund immediately. Once more, I found myself using the same smart money habit of spending only on what I needed.
This is the same approach I take when choosing a vehicle. I needed a car that could fit a family comfortably with plenty of cargo space. I would have needed to buy a full-sized SUV to get the same cargo space as a minivan, costing me tens of thousands of dollars more. The minivan was the most economical decision based on my needs. It gave me the most bang for my dollar.
A History of Function Over Flash
My First TV Channels A Smart Money Habit
When I first moved into that cheap apartment across the Charles River from Boston, I had only clothes and my old pickup truck. It would be a month before I got a bed. After about a week or so, I needed something to help me unwind after my long days. So I went down to a local K-mart and bought a 19-inch $119 TV and an antenna to get some local TV stations.
I didn’t get cable. There was no point since I was barely at my apartment. I just needed something simple for when I was there and bought a TV that matched that need. I even repurposed the box it came in as a makeshift TV stand. However, I had to place the TV on the floor when I left to avoid any potential mishaps with the box. Luckily, a friend gifted me a used TV stand that they were going to discard, so I no longer had to worry about the box collapsing.
That was my only TV for the next decade before I would finally upgrade to a newer LED. It was not fancy, but it did the job and saved me money. I would take the same approach when buying a vehicle.
An Older Car Becomes My New Car
When people land their first job, they often buy a new car immediately. They might take a car loan or even lease a vehicle, which can lead to accumulating debt. This becomes even more challenging if they have student loans to repay. It is hard to accumulate wealth and reap the benefits of compounding if a significant portion of your earnings goes towards debt repayment.
The first car I bought on my own was not fancy or expensive. Even though I needed a reliable vehicle, I did not rush out and buy a new one. Instead, I purchased a 7-year-old brown Ford Taurus for under $5,000. Here I was, in my twenties, driving an older brown Ford Taurus in the stylish city of Boston. People would crack jokes about it, but I was the one laughing because I did not need to take out a car loan to purchase it.
All the money I saved on rent, the cheap TV, and not having cable allowed me to save up money fast. So I paid for that car with my savings and kept that Ford Taurus for almost eight years. That is eight years without a car payment. Eventually, I had to move on to a new car, and when I did, I bought another used brown Ford Taurus with my cash. That car lasted almost ten years.
It is easy to overspend on a car. In both cases, I chose the smart money habit of choosing function over style and only spent money on what I needed. All I needed was a reliable car to get me from point A to point B. That is it. I did not care what it looked like, only that it served that purpose.
My Phone Flips for This Smart Money Habit
The iPhone came out in 2007, and it would be almost a decade before I switched from my flip phone to the iPhone. I rarely text or use my phone, so I never needed to upgrade. As the iPhone continued to evolve and offer more functionality, I ultimately decided to switch from my flip phone.
When I made the decision to switch to an iPhone, I didn’t immediately go out and purchase the newest and most advanced model. Rather, the motivation for my switch came from my wife’s desire to upgrade her old iPhone to a newer model. I saw this as an opportunity to acquire her old iPhone 5 and avoid spending money on a brand-new phone. I am not going to lie. People laughed at me because I switched to an iPhone 5 when the iPhone 8 was just released.
After a year of use, I had issues with my iPhone 5’s battery, so I went to the Apple Store for a new phone. I didn’t need all the fancy features, so I chose the iPhone 7 instead of the latest version. It was perfect for me and still is after four years and counting!
Prioritizing your needs when making a purchase is important, as it can result in significant cost savings. Although the latest iPhone models have impressive features, I find that I only use a small portion of them. While more affordable options are available, I prefer the superior quality of Apple iPhones. Therefore, I chose to purchase an older iPhone model that offers both quality and practicality. I’ve been using my iPhone 7 for several years, proving that function is more important than flash.
Riding My Minivan Into the Sunset
Developing smart money habits is crucial for ensuring financial stability and security. One smart money habit is prioritizing functionality, which means placing practicality and usefulness at the forefront of your purchasing and financial decisions. By doing so, you can avoid unnecessary expenses and make informed choices that align with your long-term financial goals.
Although some people may view this approach as outdated or stingy, it’s important to focus on what truly matters. Being financially responsible and mindful of our spending is a virtue that should be celebrated. Don’t let anyone’s negative opinions discourage you from making smart financial decisions. Don’t worry if they call you cheap. Remember, it’s not about denying yourself luxuries, but rather finding a balance between enjoying life and being financially stable.
This is why I love my minivan so much. It is the ultimate symbol of practicality and usefulness. Its functionality cannot be beaten. Since completing my college education, I have owned and driven each of my cars for nearly a decade or longer. I plan on doing the same with my minivan. I am going to drive it into the sunset on my way to financial freedom.
Remember to focus on what truly matters and avoid getting caught up in superficial distractions. Remain strong and steadfast, resisting any external forces that may try to sway you. It takes discipline and intention to prioritize financial responsibility, but it’s worth it in the end. In choosing function over flash, you will save more and spend less. That is the only way to gain financial freedom.
