Are you making tons of money right now?
If so, It’s time to shut your mouth about it.
That’s great that you are thriving right now. It really is. But with tens of thousands of fellow citizens losing their jobs every day, now is not the time to brag about how well you are doing.
On that note…this month will be the last detailed balance sheet I do. I’ll keep it for myself, but I’m not going to be posting it here anymore. The truth is that my business is doing ok, and showing that off is not why I write here.
I write here to keep myself accountable. To share my thoughts and experiences. Not to show off how much money I am making. I’ll show off my debts, and how I’m paying them down. But I see no reason to keep posting accounts receivable numbers going forward. It’s just not appropriate in this environment, and I can keep tabs on my own without sharing those numbers here. If something really big ever happened (lottery win! just kidding. I don’t play the lottery), of course I would share that, but even then I want to avoid numbers or gloating.
Does buying a new fancy car right now make you a jerk?
Are you offended when people “show off” when so many are out of work, losing their homes, etc?
For any well off readers, do you think twice about getting a new fancy car because of the economy? I’d love to hear your thoughts.
{ 14 comments… read them below or add one }
disappointing dk. i've enjoyed seeing your balance sheet updates and never compared them to my financial situation, but I haven't been affected by whats been happening. oh well.
also, you definitely aren't showing off/being a jerk/ by buying fancy things, it just the way things are right now. I found someone with a bmw that was about to have it repo'd because he couldn't pay the loan anymore and didn't want all the hassle/credit problems that come with that and I bought it at a steep discount, I don't think that makes me a jerk, him and I are just on different ends of whats happening.
I think its not what you say but how you say it. When it comes to sharing with financial success or woes.
I would be encouraged to keep seeing how well you are doing in your business.
Good point about how you say it.
It is unreal what is happening with all of the layoffs happening all across the country. It is a tough issue- on the one hand, DK, you showing your financial statements is a personal thing to share, however, it is being presented in a way to show your progress, not to show off. But that is your choice to make, and I respect it.
I don't think buying a fancy car or a house or any of those things is bad. Now is actually the best time to buy! But again, it is how you act that will make you a jerk. While the economy is pretty bad, it is also a great time to start and build businesses that fill a need. People will still buy things, the things they buy need to fill a gap in their lives. If you can be that gap through a service or a product can fill that gap, then the customer will still buy.
I agree with Benjamin in regards to your new amended balance sheet. As for the car, I think now may be a great time to buy a good used luxury car, or a new 2008 model.
With the used car, you can get a good low millage car for a quite reasonable price. By doing that, some of the deprecation of these nice luxury vehicles doesn't come out of your pocket. Buying a year old car could cut 20% off of the price you pay. Not to mention, buying used might allow you to get features that you couldn't afford a new car (xenon head lights, nav, heated seats etc.). And of course, dealers are always willing to get rid of that 2008 car at a low price so they can sell their shiny new 2009 cars.
As far as people complaining that you have something nice in a time of economic hardship; simply explain to them that you are living within your means and not trying to show off. If they don't like it, that's their own personal issues.
I do think its a shame you won't post spreadsheets of your financial position any more. I've enjoyed watching the $300K or so shrink, often at quite a rapid pace, its very encouraging. I don't think you should feel guilty about the success of your business (didn't you make $15K last month? Well done.) But like Benjamin I respect your privacy.
My own personal finance / options trading blog does have a post about my current financial position, which is quite healthy, but I will probably delete it if I stop being anonymous.
As for buying a fancy car during these historic times, not only does it make you a jerk, it also shows you are dumb. Now is not the time to be throwing money around, even if you are lucky enough to currently have lots of it coming in. As bad as things are, they can get worse.
Thanks everyone for the comments here….good stuff.
I agree about not throwing money around. For me this means paying down debts, but if I was debt free I would be trying to really sock away as much cash as possible right now.
I probably wouldn't buy a new car, because it's a waste of money.
But, if I were rich and had the money to burn, I'd have no problem buying a fancy new car … I'd probably buy something conservative, though, and not too flashy.
It's not the time to be angry at those who actually have money and go out and spend it. I'm no economist, but I understand that we need people to spend money for our economy to work; so it's important that we not ostracize those who have money if they want to spend it.
My parents are planning on buying a new car in the next 2-3 weeks. They have the money, and the car dealership employees and the businesses that said employees patronize will be grateful for the business my parents provide.
I don't feel this way in the case of using money one doesn't have for purchases or someone elses money for purchases, BTW.
I'll miss seeing your spreadsheets. I looked at them to see how you were doing on your debt payoff, and I never saw them as gloating over the success of your business.
DK, sometimes when I read your posts (and especially this one) I am left with the impression that you take other people's financial decisions way too personally. It is human nature to agree or disagree with another person's decisions, but you tend to go a little overboard, I think. Let other people make their mistakes (or successes) and you worry about you.
Keep up the good work with your business and debt repayment. We are all so proud of you!
Thanks Rebecca. You are probably right about taking other people's financial decisions personally. I had never thought of that, but I think you have a point. I'll have to think about this a bit…
I must agree with MBL and Rebecca here. Sure, there can be some harm with gloating about how well you're doing, but I think it's all in how you say it. If you state it factually, and not a "Ha Ha You Suck – I Rule" tone of voice, you're adding some value to your blog.
In addition, many people who are struggling might actually look forward to seeing how well some people are doing so they can emulate those who have found success. After all, it's easier to copy an effective plan than create one on your own which they might have failed to do.
I've been saving money a long time to buy a new car. I'm shopping around for the best deal. If I find the right deal on what I want, I'm going to buy it. I didn't buy a car or house a year ago because they were more than I wanted to pay. I tried to deal with car dealers, and they wouldn't deal because they had too much money pouring in. Now it's dried up, and I'm finding all kinds of deals. I'm buying something sensible, not extravagant.
I enjoy buying nice things, and sometimes they are expensive, not to show off but because they are what I want. It has nothing to do with showing off. I feel that I have worked hard to be in the position I am in and that I should get to spend my money the way I want. I have had people make comments to me both on things that I already have and at the time of purchase. Everyone is entitled to their own opinion. I also have people that want to know how when so many people are struggling I am doing so well and that opens the door for me to show them some options open to them. I do agree with the earlier comment that it is more about how you say something that determines whether or not you are bragging. If people have a right to complain about how bad things are I should have the same right to point out that things aren’t like that for everyone. I think so many people jump on the band wagon of blaming their circumstances on the economy but the truth of it is there is always money to be made, you just need to go out and find it. Yes the economy plays a part, but people get so focused on thinking that until the economy turns around they are stuck, that they seem to get blinders on and throw up their hands. I love reading about people who are currently thriving and also find out their backgrounds and their starting circumstances because to me they are not bragging, they are leading by example and showing people that regardless of the economy, you can change your financial situation.
Your blog is awesome, keep it coming!