Posted by Michael

Waco, TX was my first experience in a small town*. Living there allowed me to see in higher contrast the differences between different cultures. The cultures I’m speaking of don’t necessarily have color lines; they’re defined more by the types of financial choices their members make. That’s not to say there wasn’t a significantly higher number of a particular race in one group then there was in another, but, well… thats not the focus of this article. One of the most striking differences I noticed was the amount of money different people put into disposable commodities like wheels and drapes. In certain neighborhoods, seeing a Buick Regal sittin’ on 24’s was common. In other neighborhoods - not so much. Some choices we make with our money are better then others, and some decisions work against our best intentions to make ourselves better.

Money Mistake: “Investing” in those new 24’s.

The why you should do that:

• You’ll feel better about your car and life in general.
• Girls love shiny.

Your car represents you. Its a point of pride and tells everyone around you that you’re serious about their perception of your success. Car jewelery is a logical step and everybody likes 24’s. Think about it. They’re big, shiny, and attract tons of attention. That’s the point right? Attention. We all know the ladies love the shiny, and the fact of the matter is; nothing shines like a fresh set of shoes for the whip - especially when summer comes around.

The why you shouldn’t do that:

• You’re broke.
• You’re spending non-discretionary and non-disposable income on an intentionally disposable commodity.
• Girl’s who like shiny tend to go where the shiny is, this is not a good thing.
• College is expensive, your kids should go.
• You’re broke.

Disposable income is the total amount of income an individual makes after direct taxes.

Gross income - taxes = Disposable income

Discretionary income is the amount after taxes and after the cost of the fixed expenses of life (such as rent/mortgage, food, car payments, insurance, etc.), which is also called necessities.

Disposable income - necessities = Discretionary income.

The second bullet-point is a big no-no, especially if you’re a dues paying member of the first and fifth bullet-points. If you’re broke; spending money on wheels is not a good idea. How do you know if you’re broke? If your discretionary income is a negative number, zero, or uncomfortably close to zero - you’re broke. It’s OK though, we’re all here to learn more about money, so don’t feel bad about your brokeness, brokeitivity (spellcheck hates me).

Wheels are not an investment. I don’t care what anyone tells you, aftermarket wheels do not significantly raise the value of your vehicle. A tool? Maybe, but only if you’re working as a promoter and your car/truck/suv is plastered with ads for whatever it is you’re promoting. Plus, your wheels are going to self destruct. Not because a new style will be out before you even get them joints bolted on, but because you’re a terrible driver; and pot holes love eating shiny.

Oh, and if they do their job and get you that girl - shes going to drive your truck, and shes going to curb your 24’s. I promise.

iStack Money Advice: Shine when its time.

Everybody likes to shine. Well, not everybody. You though, you like to shine. You know what? It’s OK to shine. Plus, I’m all for individuality and having a hobby that leads to a more fulfilling life. If making your ‘86 Regal sit up in the air like a monster truck does that for you then… phhhhhft - do you. But not at the expense of your children’s future, or your own.

Momma iStack swears I don’t listen to her. I do, and there’s one lesson I’ll never forget. It was beautifully simple, short and will stay with me forever. We were driving though the College Grove area in San Diego when I spotted a shiny car, a Datsun 510. Ten year old Dough-boy Tell ‘Em said;

“Momma iStack, we should buy a car like that or at least put gold rims on this car”.

Did I mention the 510 I saw was lowered on gold Daytons? No? Well it was. Anyway, Momma iStack said;

“Ten year old iStack, shut it”.

“Ten year old iStack, people who drive cars like that just want attention, and they probably live in an apartment, with no garage to put it in”.

Now, I don’t know if she was trying to prove a point, but an hour later, driving back though College Grove I see the shiny car. Parked in a marked space - in front of an apartment.

Thanks for the long ass story, whats the lesson?
Priorities. Figure out whats most important to you and the people who depend on you. Focus your resources there.

Is shinin’ really that important? Yes? That’s fine. Put yourself in a position where spending $7500 on wheels isn’t going to effect things that should have higher priority. Make more money, spend less money elsewhere. Elsewhere does not include college funds or retirement plans.

If your discretionary income leaves you with enough to pay for your children’s education and put something away for later; do what makes you feel good. Even if that means putting 24’s on what ever it is you’re driving.

So I’m holding my wheel money. What should I spend it on?

If you’ve read all that it should be clear. If you skipped down to this part go back up and read all the other stuff, I didn’t type it so you could skip it… go on scroll back up… ass.

One of the best scenes from the movie Baby Boy is when Ving Rhames explains to Tyrese Gibson and Omar Gooding the difference between guns, and butter. Guns being commodities that appreciate in value such as Real Estate, Bonds and C.O.D.’s. And butter being dumb stuff that dumb people “invest” in - like clothes and cars.

Do something with the money that will allow it to grow. Stick it in a high yield savings account or short term CD. Don’t sit on it, but don’t go spending it on iPhones either. Especially if you’re renting, you’ll need that money as a down payment on your freedom.

The Bottom Line.

Make better choices with your money. It’s a tool, so use it like one. I’m not saying you should never splurge, but when you do, do it in moderation. Look, it’s your money; do what you want with it. But let me tell you, that’s not admiration you see on peoples faces after you just used your EBT card to buy groceries… and leave in your donk.

* My friend Alex hates when I call Waco a small town. I guess its kinda big, it does have three(3!) Super Wal*Marts. San Diego has zero.