My Honda S2000 Is Another Money Dial
As I told you guys in the last money dial episode, I enjoy anything that has an engine in it.
My 2016 fz07 is one and the other is the beautiful 2006 Honda s2000.
I’ve Always Been Into Cars
From my early 2000’s, I’ve always been into cars. Especially the Japanese ones.
In my opinion, the late 90’s and early 2000’s, was the best time for Japanese sports car.
You had the NSX, Supra, RX7 and Lexus LFA.
And not to mention sporty compacts like the Civic SI, Honda prelude, Acura Interga type R and GSR, RSX, Nissan 350z and of course the Honda s2000.
Many of use elderly Millennials remember seeing the car of the Honda s2000 debut in the Fast and the Furious.
There's just something about revving out an engine, changing gears, listening to the exhaust note that does something to me.
Yes, I want to invest.
Yes, I want financial independence.
Yes, I want to build wealth.
But I also want to enjoy some of my money today.
The challenge is figuring out what's actually worth spending that money on.
For me, cars are one of those things.
Buying My Honda s2000
I purchased my s2000 in December in 2019. I remember that day like it was yesterday
After paying off all my back taxes and closing on my condo, I was working and saving like a mad man.
I was still working my bread merchandising job part time but DJing was going very well.
I decided when I was going to refinance my condo, to use 20% of the money I was taking out and buy my “dream car.”
I had the cash, but with my condo going up in value by 62% in less then 2 years, I said why not.
I just used the money I had saved and put into my investment account.
I found the vehicle posted on FB marketplace for $25,000.
I couldn’t believe that a 2006 was selling for that cheap. Especially when the market for the s2000 is crazy.
So I went to look at the car, had 3k in my pocket for a deposit, seller knew I was serious, and two weeks later, I was driving home in my very own s2000.
It was such a surreal moment
I remember for my birthday a couple years ago, my girlfriend at the time now my wife, rented me s2000 off Turo. Turo is a car sharing rental service.
It was the best birthday gift ever. She knew how much I loved the s2000.
I had no problem making the decision to buy the car.
I had a healthy investment account, fully funded emergency account and I used the majority of money to buy an asset that would appreciate in value in the future.
Interesting Part About The s2000
After negotiating with the seller, I purchased the s2000 for $23,000 in 2019.
Today, similar S2000s can be worth considerably more than what I originally paid.
I didn't buy the S2000 as an investment. I bought it because I wanted the car.
The fact that it's held its value extremely well is a bonus.
Cars generally aren't investments. Most cars depreciate
You buy them, drive them for several years, and they're worth significantly less than what you paid.
So I don't want somebody listening to this thinking: "Okay, I'm going to go buy a sports car because I said it's an investment."
That's definitely not what I'm saying.
What I'm saying is that I bought something I genuinely wanted, I've enjoyed it for years, and it happens to have retained significant value.
That's a pretty nice combination.
Why This is Different Then Just Spending Money
Having a money dial doesn't mean: "I like cars, so I can spend unlimited money on cars."
That's not how it works.
You still have to make choices.
I've talked on this podcast about things I deliberately spend less money on.
There are plenty of things other people spend money on that I don't really care about.
And that's what gives me room to spend more on the things that I do care about.
That's the part of personal finance I think gets missed sometimes. We constantly hear:
Cut your expenses.
Stop buying coffee.
Stop eating out.
Stop travelling.
Stop buying nice cars.
Stop doing this.
Stop doing that.
Then what are we actually building wealth for?
I don't want my financial life to become a competition to see how little money I can spend.
I want to become financially independent while building a life I actually enjoy.
MY s2000 Creates Experience And Means Something To Me
One of my favourite things about owning the S2000 is that the enjoyment doesn't necessarily come from spending more money.
There’s nothing like driving with the top down, listening to the exhaust note, listening to the intake sound and just enjoying the ride.
I also like that my wife enjoys the car as well. The car just gives you such an experience.
Another thing about the car it that it represents something to me.
It was something I wanted, got it but more importantly, I didn’t mess with my financial stability to get it.
For me, I went about getting it the right way.
They will never make a car like this ever again.
The closet thing is maybe the Subaru BRZ and Toyota GR86, but the engine is just on a different level in the s2000
I miss the days when Honda would make these high revving engines that were bullet proof reliable that you could use on the daily.
Financial Independence Shouldn’t Mean Putting Your Life On Hold
Financial independence is a long-term goal.
I absolutely believe in delayed gratification.
But there's a difference between delayed gratification and delaying your entire life.
I don't want to finally reach financial independence one day and say: "Okay...now I can start enjoying myself."
I want to enjoy the journey too. Responsibly of course.
The s2000 fits into my financial plan
I invest.
I save.
I think about my future.
But I also leave room for the things that make my life enjoyable right now.
