Lessons from a 1989 Porsche Speedster
In 1995, I received a phone call from my local Porsche dealer. He said, “The car of your dreams is here.” I immediately drove down to his showroom to look at a 1989 Porsche Speedster. I already knew that there were only 8,000 of this model made over a three-year period. In 1989, Porsche devotees were buying them, putting them on blocks, and storing them. If you could find a collector who would sell one, the asking price was $100,000 to $120,000 in 1989.
But in 1995, I was looking at the rarest of all, the 1989 Porsche Speedster. This was Speedster Number 1, the first-ever built of this model, and it had the Porsche turbo body, which means little except to a dedicated Porsche fan.
Since it was the first one built, it was the model that the factory toured all over the world at auto shows and was the car used for the photo on the brochure. The car also came with a special plaque from the Porsche factory. In 1989, after the tour was over, this car was also put up on blocks and stored in a warehouse. When a collector decided to sell it in 1995, the dealer called me. The dealer knew it was the car I had been looking for. The car may have been used, but it only had 2,400 miles on it.
Kim watched me go into a hypnotic state as I walked up to the car of my dreams. I sat in the car, took hold of the steering wheel, and inhaled deeply, smelling the rich scent of leather. The car was absolutely flawless, and the color was perfect, a shade Porsche calls “metallic linen.”
Kim looked at me and asked, “Do you want it?”
I responded with a nod of my head and a smile.
“Then it’s yours,” Kim said. “All you have to do is find an asset to pay for it.”
Again I nodded, inhaled the rich scent of leather one more time, climbed out of the car and smiled. It was the car of my dreams and it was mine. We put a deposit on the car, arranged financing with the dealer, and I went out to find the asset that would pay for the car. In other words, I was going to find an asset to pay for my liability and use good debt to pay for your debt that is bad.
A little over a week later, I found a great piece of property—a mini-storage project in Texas—borrowed money to buy it, and the monthly cash flow from the property covered the monthly car payments for the Porsche.
Five years later, the Porsche was paid off and I still had the cash flow from the property. In other words, instead of getting poorer from having an expensive liability, I became wealthier and got the car of my dreams, which I still own today. We did the same thing when my wife found the Mercedes of her dreams.
Instead of saying, “I can’t afford it,”
I said, “How can I afford it?” I encourage you to do the same.
Years ago, my rich dad said, “Some people believe that God wants us to live frugally and avoid the temptations of the finer things in life. There are other people who believe that God created these wonderful things for us to enjoy. It is up to you to choose which view of God you want to believe in.”
I share the story of my Porsche because I want you to have the wonderful things this world has to offer—without sacrificing your financial well-being and winding up in financial hell. And I tell the story for the lessons that follow about abundance.
Editor, Rich Dad Poor Dad Daily