I'm a millionaire, yet I've never driven a new car.

Hi Mona,

Thank you for connecting and inviting me to share my story. I truly appreciate your platform and all you do to help immigrants.

I wish we had many people like you when I was growing up. Many of us had to learn the hard way, but I must say I got lucky.

Today I will be sharing more advice, not necessarily strategies since I’m not licensed to do so.

My family moved to the USA when I was 16 years old, just two years before I got into university. I knew nothing about money, but my dad had been a businessman back home selling car spare parts, and all I knew was I was going to grow that business. So, my only goal was to study business when I got to college.

Going into college, I had a full ride scholarship to Yale (Lux et Veritas). My parents were so proud. I’d be that businessman after all. When I say I got lucky, this is why. My roommate was a blessing; his father was a hedge fund manager, and oh boy, did he teach me the good stuff.

Yale had a mixture of personalities, but a majority were spoiled kids who only showed off what they owned. Remember, I’d just been in the country barely two years, so I still had my "African boy" hood on. Many things were still very strange to me. Why would you need a luxury car as a student? Well, to each their own.

My roommate, on the other hand, was very down-to-earth. His car was very basic; I believe his grandpa had given him his old car. You’d think that he was also on scholarship, not until that Thanksgiving when he took me along to their house. Talk about luxury. Honestly, I was shocked and intrigued at the same time. I wanted to know what values his dad had instilled in him that made him different from all the other rich kids.

His family quickly accepted me; I became almost like their adopted son. I loved me some Uncle Tony. He was so fun to hang around and had so many valuable lessons to teach. The first thing I kept asking was how I could start investing in the market. Well, this is a market guru, so I better shoot my shot. Uncle Tony was like, not too fast, boy. And he proceeded to make a phrase that stuck with me: Do you know the kind of people who invest before they save? I said no. He laughed and said, "Dumb people."

Now I’m introduced to a whole new concept. Savings are different from investments, and this is where many of us get it wrong. We dive into investing full force without setting aside anything for emergencies. Then, at the first sight of hardship, you sell those investments at unfavorable prices. If you learn the art of savings and especially where to put your money that can grow for you, then you can have enough money to invest and still have money left for emergencies. Since I said I will be sharing some teaching points, let me drop a few reasons why savings should come first:

- Building a habit of saving provides a solid financial foundation and helps establish discipline in managing money. It ensures you have a safety net for emergencies and short-term needs before committing funds to long-term investments.

- Saving first allows you to accumulate an emergency fund, reducing the need to dip into investments during unexpected expenses or downturns in the market. This helps mitigate the risk of having to sell investments at unfavorable times.

- Learning to save fosters financial literacy and discipline, teaching valuable lessons about budgeting, goal setting, and delayed gratification. These skills are essential for successful investing and wealth building over time.

- Having savings provides peace of mind and reduces financial stress, enabling you to approach investing with a clear mind and long-term perspective. It allows you to take calculated risks and withstand market volatility without panicking.

Once you've established a solid savings habit and have an emergency fund in place, you can gradually transition to investing with a portion of your savings. This allows you to take advantage of investment opportunities while maintaining financial stability and security.

Fast forward to graduation, my roommate couldn’t stop talking about what his graduation gift would be. He had earned it. He was getting a 4.0 GPA. He had wanted a brand new Chevrolet Silverado, which was very popular back then in 2010. On one of Uncle Tony’s visits, my roommate decided to lay his case. There comes another lesson.

Uncle Tony was so disappointed. He literally told him, "I’m so disappointed in you after all what I’ve taught you, I would think that your first thought would not be a depreciating asset. I could very well give you the money for that, but do you know what extra stuff you could be doing if you just got a used car and put that balance to work?"

I shrunk on my bed. Here I am thinking that rich people like to splurge, but I felt like I was being let into their secrets. Uncle Tony went ahead to lecture. New cars can lose a significant portion of their value within the first few years of ownership due to depreciation. By purchasing a used car, you may be able to avoid the steepest part of this depreciation curve and preserve more of your investment. Insurance premiums are usually lower for used cars than new cars. If you were going to finance it, it comes with a lower interest rate compared to a new car. You get the point right; there is so much more money that can be going back into your pocket.

He proceeded to say, "I am not opposed to buying you the car, but I just wanted you to know your options. Let me know when you want to go to the dealership." My roommate turned around and looked at me, and we both had this confused look on our faces. Needless to say he didn't get his dream car that year.

Okay, I will wrap this up before it becomes a two-edition write-up.

I eventually graduated, had a great working job, and went on to start my own business. I did not sell car parts like my dad, but I sell house parts. I made my first million at 28 and have since made many more millions. But still, I've not brought myself to buy a brand new car. I've used my current car for 6 years. I may be diving into those waters this year. Let's blame it on the wife ??.

Everybody’s story is different. I’m not here preaching a minimalist life, but all I’m saying is know your choices. Know what you could be giving up if you decide to choose luxury. The sad part is many people do not even choose brand cars solely for their comfort but rather to please or impress people who don't give two f’s about you. Like the saying goes (To pepper them), at the end of the day, you are “Peppering yourself.”

Honestly, when you get to read the insides of the wealthy, you’ll realize that they are very focused on building wealth rather than just spending money. I have since used so many valuable Lessons I learned from uncle Tony and I must say it has gotten me to where I am today.

Thanks for reading, y’all.

The Guy who Listened