When is the last time you bought a new car? How much did it cost you? An average new car today costs around $25,000. Sound like a lot? How about paying cash for that car? When is the last time you did that? How many people do you think can afford to do this? Obviously not many. However, if you’re like Jeff Rendell, it is much easier than you think.
Jeff is now 44 years old and he pays cash for all of his cars. Here is the secret of how he put himself in this position for life. When he was 18, his dad refused to co-sign for a loan and the entire burden to pay for the car was on Jeff. Jeff’s father taught him this principle that is the take-a-way from this blog. “Jeff, if the loan is for 5 years, keep it for 10 years and continue to make payments to yourself in years 6-10.” Now after 10 years when Jeff got his second car, he applied that amount to the new car. Again, he financed that second car for 5 years but paid for it for 10, paying himself the difference over the 5 year period. Do you get the point? Twenty years and two cars later, Jeff is now set for life to pay cash for his cars.
Think about how this principle, paying “Cash For Cars” can have applicability in so many areas of our lives. For sales people, if the requirement is to make 40 calls a day, make 45. Anybody can make 5 more calls. Consider this an extended warm up period. Over the duration of a year that person has made 1,000 more calls. Do think this will have any impact on their sales, accomplishments or income? You do the math.
The cash for cars principle is all about self imposed discipline. It’s what Jim Collins’ refers to as the “20 mile march.” This is just the 20 year march. Same principle at work. If you don’t know what I’m talking about, get the book and read it.