Dave’s Journey to owning a Tesla
Welcome back to Part 2 – The Saving Strategy , Dave’s Journey to Owning a Tesla.
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.
Why a Tesla?
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.
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.
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.
Buckets and accounts
Part 2 – The Tesla Saving Strategy
He talks about different buckets for your money,
- Your money, pay to pay, to do with what you want.
- Savings that allow you to save for retirement and big events.
- 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.
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.