Let’s read the story of buying a New BMW X1
He is not a Founder, CEO and CTO, He is Simply the team lead of SDE in a Unicorn. He is under 30 years old.
Many people think buying a BMW X1 is not a big deal, yes I agree too. The point is the way he utilises his money is good. He bought through his ESOP money, and I am telling you briefly about my friend, what he has done, and what he wants to do in his life. He is simply a graduate of IIT Delhi.
Currently, he is working in the aggregator of an automobile service provider startup, and his role is as Team Lead of Software development of Engineering. He had joined this startup as a software engineer just before Covid-19; within a year, he got promoted and got some ESOP. The company has offered an ESOP buyback offer to its employees.
Now his ESOP value is less than 20Lac, but it’s enough money to make a down payment. And the rest amount he will be paying through EMI, which is not good for his upcoming lifestyle; if his company is growing every year, then he will not be facing any difficulties to pay the rest of EMI, even though he will be clearing all EMI in one go if he will again get the next year ESOP buyback offer.
My view on it:
Initially, I opposed him to buying any new car because it does not add any value to your net worth; here are the two reasons why I should oppose him to buy it
- They do not have any passive income: whatever they made downpayment with the help of ESOP money, he could easily create a passive income with the help of freelancers, and they could start making over the years $1000 to $2000 every month, then over the year he can buy the same car but this time do not have any burden to pay EMI.
- First, he should have bought a house then Car: But his theory is the opposite, he told, he would first buy the car then he will buy the house because the time of purchasing the home if he goes with New BMW X1 creates impression chances to get good locality in the colony.
Conclusion:
My reaction is a mix-up; I do not want to discourage him, might be his decision is not good for the long term. Over time, it will decrease its value, I am also thinking of buying a Mini Cooper, but before owning it, I want to create more than two passive incomes. Maintaining a luxury car without any business or passive income is difficult. I hope you are learning something new; The article is originally published on Medium. Thank you for reading!
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