Never Finance a Toy
By Kevin Estes
What have you learned in odd places?
On a Boat!
A group of us friends were out on a boat in Northern Idaho.
Joe and Amber were trying to convince Kyle to buy a boat together.
They mentioned how low the monthly payment would be.
Who
We were all in our late 20’s.
Joe, Amber, and Kyle were - and still are - highly successful and seriously cool.
Joe and Amber were married and had moved cross country together.
Kyle was single.
Kyle’s father was the Chief Financial Officer of a thriving local business.
Decision
Kyle declined using four words I’ll never forget:
“Never finance a toy.”
What Happened Next
Joe and Amber divorced within three years:
Joe moved to California.
Amber threw herself into her horse passion.
Kyle would’ve been left holding both the boat and the loan.
He made the right call.
Oversimplified
As with every money heuristic, “never finance a toy” may not be appropriate for every situation.
Nonetheless, it’s a powerful framework I use often and thought you might appreciate.
If you’d like to discuss your situation, feel free to…
Disclaimer
In addition to the usual disclaimers, neither this post nor this video includes any financial, tax, or legal advice.
