Welcome to Part 4 – Taking my own advice, just like parts 1-3 of Dave’s Journey to Owning a Tesla we have discussed the ins and outs of why I want to own a Tesla.
I offered up some good tips and ideas on how we can find ways to earn more money to grow our fund for Tesla.
In Part 4 Taking my own advice, I start to explain some of the ways I have started to accumulate the funds that can help to grow my Tesla fund.
Of course, like any discussion that starts when you are wanting to prepare to change the way your money is divided up watch fortnight or month depending on when you are paid, you have to discuss it with your partner.
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Share the passion
In my case I sat down with my wife like we do regularly and worked through how we might put money aside to start the ability to grow our saving for a car.
This conversation focused on finding flexibility in our budget to allow for a separate amount of money focused on delivering a car down the track.
Barefoot process helps
As I have mentioned before we follow the Barefoot investor formula. One of the benefits to this is we have a very clear picture of where our money is distributed and where we might be able to make subtle changes to allow for this money.
We found an amount that both of us were comfortable with and we started to plan ahead.
But of course, this was never going to get a Tesla in the next couple of years. So, I started to think like an Entrepreneur as I outlined in Part 3.
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Think like an Entrepreneur
As you are well aware, I have created over the last 18 months a website and following on Twitter of people with like-minded ideas. We are passionate about Tesla and the electric vehicle future that is now in full transition.
So, I thought how can I share this passion and generate small financial benefit in doing this. I had recently noticed a couple of people I follow had started their own merchandise store.
So, I decided to do the same.
Merchandise
It took me a number of weeks looking for the right way to create the merchandise shop.
Many hours were spent putting together my store and the imagery of the store. But what took the longest was the selection of using the Spreadshirt site.
There are literally hundreds of these stores online and of course not all are equal. I chose spreadshirt based upon a recommendation. So far, they have been a simple yet effective way of planning my store.
The other key part was to allow it become part of my website not just another link but embedded.
Spreadshirt does all of this with Word press which my website is hosted by and allows it to be a store on a page.
It was always my plan to give a good choice of products for people to access. I will continue to review and update this store over time. I hope it will allow others to enjoy and share with me and my passion for electric vehicles.
The EV industry is evolving. Electric vehicles have started to become more mainstream. This has been much more apparent in recent weeks with the introduction of the new electric vehicles from car manufacturers.
Nissan showed the world their new vehicle the ariya. This is a SUV cross over vehicle designed to compete with the likes of the Model Y.
Image courtesy of Nissan.com/Twitter
It is fair to say that they have the best opportunity to step up as they have had previous success with the original Nissan leaf and more recently with the New Nissan leaf.
China has also been rolling out new products to the market in the last couple of weeks Lucid motors, Xpeng and a flurry of others have all introduced vehicles to the market.
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Why now?
The EV industry is evolving which is why 2020 was always going to be the year of the electric vehicle.
In 2018 there were a number of car companies that introduced their idea of what the electric vehicle could be. The concept electric vehicles were futuristic and feature rich.
It was the beginning of the evolution of the motor vehicle and a push into the future of transportation.
A pivitol change year for the car industry.
As it turns out it was to be a change year for more than the car industry. However the rise of the corona virus ( COVID_19 ) put a fly in the ointment.
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2020, Not what we expected
With the isolation and social distancing that occurred a lot of people and products were put on the back burner.
Some companies have been able to release their products and adapt to the changing environment whilst others have been delayed.
Suppliers were not able to supply the key components of the new cars as they too were impacted.
It is difficult to build a car when you are reliant on other manufacturers to deliver components for your cars.
One of the car manufacturers that has not been as challenged has been Tesla. Yes, they had to shut down and Yes, they had to abide by social distancing rules but they have adapted and risen to the challenge.
One key part of their success has been their use of robotics and also good management of the environment their staff were returning to.
The factory has continued to deliver cars over the second quarter of the year which surprised everyone as the outcomes of deliveries where larger than expected.
Even though we as a global society have had to change how we think, live and work in the last 6 months I believe this is only going to make us more resilient, resourceful and conscious of the outcomes, of our actions and our ability to see the possibilities in what we can do to make our lives and the future a better place to be.
Welcome back to Part 3 – The Entrepreneur, Daves Journey to owning a Tesla.
Part 1 and Part 2 we have discussed strategies about money management and the beginning of the journey, now let’s talk about the Part 3 – The Entrepeneur.
Part 3 – The Entrepreneur- Elon musk is by his own admission an entrepreneur. His beginnings with his company X (PAYPAL) and continued with Tesla, SpaceX, Neurolink, The Boring Company and beyond.
This passion to discover new and exciting things has driven his ability to create industry leading companies out of nothing. He has had great people who have supported him along the way to achieve his current status.
This thinking can allow us to work towards generating enough capital to purchase a Tesla.
I recently went on holidays and whilst there I met a young man who had started his own business. He looked at a simple skill that was taught to him by his aunt and found a way to make money from that simple idea.
During this time he explained that he has also developed new skills that have helped to grow his understanding of the opportunities that before where unknown.
It helped him grow his confidence, passion for running a business.
This simple conversation allowed me to think about opportunities that may be present to assist with owning a Tesla sooner.
Think like an Entrepreneur
To think like an entrepreneur means to look at the world differently. To take stock of what you believe as the norm and see if there are ways to put a different spin on it. It is to find solutions to issues that already exist. Review what you do and see if you can find a simpler way to execute on it.
Part 3 – The entrepreneur is looking to help to determine what simple principles are in this thinking.
Look for opportunity – new and fresh ideas
Think outside of the box
Try to find a new way to do old things
Review what you do and see if you can find a simpler way to execute on it.
Follow your passions
How to execute on these above ideas.
Look for opportunities – new and fresh ideas
Like the young man, he saw an opportunity by being taught how to create candles that his aunt showed him, he then took that and turned it into a business.
Teach yourself new things
Identify if there is a need for this new skill in the world around you
Speak to people around you to see if your idea makes sense and has merit.
Write it down
Break it down into cost versus, output and return.
Think outside the box
Sometimes we do daily tasks that take no attention to complete. These have been things we have learned or picked up along the way.
Pay attention to your daily tasks.
Think about what you are doing and see if there is a better way.
Don’t be afraid to experiment
Failing is ok as this lets us learn and find another way.
Try to find a new way to do old things
The old saying that “we have always done it that way”, is exactly what you want to find with this one.
When you think about that statement it’s time to review what you are doing.
Break down the process, step by step, and find fresh ways to manage the situation
Look to technology and see if technology can help the issue at hand
Look to other processes and find comparisons that allow for simplified ways of managing the issues.
Review what you do and see if you can find a simpler way to execute on it.
Keep it simple Stupid or the KISS principle has been a corner stone of my thinking for a while. This is the type of thinking that may find opportunities for you to execute upon.
Every day we do things regularly both at home at work and beyond. These are the areas you can look for opportunity.
Pay attention to what you are doing
driving and the things you do in those transitional stages between events
walking
cleaning the house
Etc.
Follow your passions
Last, but far from least it is imperative to follow your passions. To follow your passion allows you to stay focused when times get tough or obstacles get in the way. By thinking like an entrepreneur gives you the courage to find solutions to issues and problems and continually move forward.
Look to your hobbies
Review the things that you enjoy watching on social media
Look at your Pinterest and see what you have saved
Review your twitter feed to see who you like and follow
Talk with friends and family and ask what they see as your passions
Be true to yourself because if you aren’t driven by it you will not enjoy the rewards
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Image courtesy of Tesla
I am passionate about Tesla and the possibilities that Electric vehicles and non-polluting renewable energies can provide.
I will be taking my own advice and looking for opportunities in what and how I do things to find the idea that just might help to grow my ability to step into my own Tesla.
Part 3 – The Entrepreneur, Don’t lose your ability to have new and fresh ideas, don’t ever feel that an idea is not good enough. Remember the old saying one person’s trash is another person’s treasure. This is the quintessential entrepreneur thinking.
Last time in Part 1 – Lets Begin I wrote about the path forward, looking at how I can gain enough capital to make the loan amount for my Tesla much more palatable.
Over the years I have been the typical Aussie, looking for a quick win to make a few bucks.
But as most people when you’re young you’re not really any good at finances. The misconception is that it’s easy.
I tried to save in jam jars, I tried to work two jobs, I tried working more shifts, I even went to financial experts (so called) for advice on investing which ultimately lead to more debt and harder times ahead.
On the upside I have a house, a job and a current gas car, so all is not lost.
In recent years I have become more interested in the concept of making my money work for me, not I for it. In this vein I started to look at different strategies on how to minimize my costs and improve my capital.
I have been a fan of Tesla now for many years as some of you already know. In that time I have bored my family to death about the possibilities the car and mission provide. I have spoken at length about Elon Musk and the Tesla products. I have written many blog posts about the same. So why do I want to own one of the most expensive electric cars in the world and not just settle for something cheaper.
Simple, I am a tech nut, I love gizmos and gadget, I love to pull things apart to better understand how they work and then try and put them back together, not that I would do that to my Tesla.
I am an early adopter of new tech and love to see what the next frontier looks like. With this in mind Tesla ticked all the boxes that drive my curiosity and passions. They are a tech company first and foremost. They strive to do better for the environment, and they do it with one sole purpose to transition the world to sustainable energy and transport.
It is because of this that I am a Tesla fan. No doubt. So, when making the decision to start my journey to owning a Tesla it was not a hard decision.
I want to share what I have learned in the hope that others may find a way to do the same.
In Australia owning a Tesla is not a cheap experience. We do not have the luxury of being able to buy a Tesla for $40000 dollars as they do in USA. So, we have to plan and strategize to be able to afford them. It can take years. This is why I am writing down my ideas and processes so others can come along with me.
Different ideas!!!
I came across a strategy online about how you use a credit card and then at the end of every month you pay that down so on and so forth. This was my first attempt at getting ahead. That failed. All it did was increase my debt and caused more tight times ahead. So, I started to read and search for ways to maximise my saving s by cutting costs and reducing incendiary expenses. That’s when I found a book that would start my family on the road to better financial independence.
Scott Pape is an aussie finance guy. But unlike the stiff upper lip and suited up bank guys he is a guy who lives on a farm with his family and dog. He talks about investing and money management in simple easy to follow terms, and that’s right up my alley.
He is an aussie through and through. “The Barefoot Investor” book is one of the most practical money management books that I have read in years. It outlines simple to follow, step by step instructions to set yourself up for better financial times ahead.
His advice is not hard to follow, or difficult to comprehend, it is straight talking simple information and steps out how to help get your finances in order.
Not only that he gives tangible instructions on how to manage your money now and into the future.
So, I dived into his book and read it cover to cover in a short time. When reading it with my wife and I speaking at length about the strategies and the practical steps he suggests. They all made much more sense than anything I had read before.
So, we decided to do it.
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My Path
It has been 2 years since that decision.
The last couple of years have thrown a couple of curve balls at my family and we have kept our heads above water with the support of the Bare foot investor process. Do we still have debt? Yes. Do we still have a mortgage to pay? Of course. Do we have a way forward to paying down the debt? Absolutely, because we have an understanding of what to do now, whereas before we never had a strategy that worked?
And that’s the trick. It is not all about making money in 5 mins, it’s about being flexible to anything life throws at you.
One of the cores to his strategy is the idea that talking about money regularly allows for better understanding of the process and also allows for deeper knowledge of what you are doing with and for your situation.
He introduces bare foot dinner date nights every week at the beginning and then monthly. During the date nights you read a chapter of the book which outlines a specific process, and work through the steps.
Now I know what you’re thinking, that this sounds like smoke and mirrors, but I am telling you as someone who needed financial guidance and who used this process to effect, it works.
But with all things you have to be disciplined to make it work.
Savings that allow you to save for retirement and big events.
Mojo
Emergency back up money to replace your credit card bill.
Reference “The bare foot investor” 2018, Scott Pape.
He then talks about setting up different bank accounts including:
Smile – (10 % of wage after expenses accounted for)
Saving for big things like holidays and cars.
Splurge- (10 % of wage after expenses accounted for)
Money to enjoy between pays, everyone needs some flash money.
Fire Extinguisher (20% 0f wage after expenses accounted for)
Increase your ability to pay down debt
Reference “The bare foot investor” 2018, Scott Pape.
Like I said his strategy is simple yet effective.
So, with this strategy I am confident that within the next couple of years I might just be able to get enough money in my Smile account to be able to afford a Tesla.
Scott Pape also looks at Superannuation, Investing and saving money on bank accounts and the like. This book has helped not only me, but many others get financially stable and work towards a better financial future.
Beginning the journey
As I start part 2 – the Tesla Saving strategy, I know I will ebb and flow with the tide to get a big enough deposit to make it work.
Life is tumultuous, dynamic and stressful but ultimately if you can stay the course, manage what you have, the best you know how and look at the goals you want to reach anything is possible.
Thanks to the barefoot investor, Scott Pape, for writing the book and allowing me to grow my understanding of simple money management.
I know somewhere in the coming years I will be driving my Tesla and knowing that my family and I have worked hard to make a dream a reality. It will also mean I can enjoy doing my part to help the environment and the future of our children.
Dave
Disclaimer
Hope you enjoyed the ideas and within the Part 2 – The Tesla Saving Strategy and hope that this helps to give some ideas on how it is possible. All information within this blog relating to Scott Cape is my own thought sea feelings. I have referenced his book and have not been sponsored in any way.
