By now you may have noticed that I am a huge fan of hip-hop. Despite loving it, I also find myself frustrated with the messages it sends to millennials in regards to money. One common theme in rap music is the celebration of the underdog. The boy or girl who came from nothing and against all odds, surpassed society’s expectations and became larger than life. I can respect that, as I too STARTED FROM THE BOTTOM. But once you’ve “made it”, the question is "what do you do with your money?" I can tell you what not to do. You don’t buy a new Bugatti!
This song by Ace Hood is a prime example of hip-hop music and how purchasing expensive cars and other luxury items give young people the wrong idea on what being successful means. Ace Hood raps that he "woke up" in a new Bugatti and is essentially saying he was an overnight success and purchased a Bugatti to let everyone know he made it. While I agree with rewarding yourself, you must do it within your means. This is especially true with new luxury cars as there is perhaps no worse investment. What you think is an increase in your social status, is in fact a decrease in your financial status. For example, a new Bugatti costs around $2 MILLION! When all is said and done, that's more than enough to retire. Otherwise, you might end up living in your Bugatti!
Cars are depreciating assets! Say it with me: Cars are depreciating assets! Instead of spending that $2,000,000, you should invest it like my man the Millionaire Mentor preaches. Ask yourself, what am I doing to plan for my financial future? Do you have a budget? Are you saving? Are you out of debt? Ever heard of a Roth IRA? 401k? I look forward to chatting with some of you in 2019 as I will be hosting a call in show to discuss, you guessed it, MONEY.