Most of you know that family is my number one priority, especially with the recent birth of my son who is now 25 days old. Most, if not all of the decisions I make from now on are done so with him in mind.
However, I'm still a dude, and dudes love their toys. My dream toy is an Audi R8, a car that I first saw in a commercial during the 2008 Super Bowl. I don't remember the score of the game, or even where it was played, but I do remember that car. I've wanted it ever since.
To quote Left Lane News, the Audi R8 has “…a 420 horsepower high-revving V8 engine and all-wheel-drive. It uses the mid-engine Lamborghini Gallardo platform positioning it squarely against the BMW M6, Porsche 911, and Aston Martin Vantage.”
The base price for this bad boy is $114,200 USD.
How to Get an Audi R8
Using the methodologies of Tim Ferriss, let's take it step by step:
Step 1: First, let's figure out the monthly payment:
Assuming $4000 down, the 5-year plan (60 month loan) would cost me a total of $2,341 a month. As Tim would say, we have a TMI (target monthly income) of $2,341 for this particular want.
Step 2: Break down the monthly expense into a target daily income (TDI).
Now that we can see the TDI, the R8 seems much more attainable. It would only cost me an extra $78.03 a day to own my dream car. Putting a dollar value on your dreams helps you to realize that the big things you dream of are in fact not as far away as you think.
Step 3: Increase your income accordingly.
Obviously, this is easier said than than done, but now that we know how much more we need, we can then determine the types of things we have to do (and don't have to do.)
In other words, $78.03 a day is not $500 a day. Trying to increase my daily income by $500 a day would take drastic measures. But, if I had to make $500 a day in order to get something I wanted, then it would be those drastic measures I would be interested in taking.
$78.03 a day is only four $19.99 products, two $39.99 products, or one $79.99 product. Or, what about a coaching course that costs $1200? Take on two clients a month, and you've got yourself an R8. See how it's starting to come to life?
To add on to the idea of increasing your income, here's a direct quote from Tim Ferriss' blog regarding “lifestyle costing” and the Target Monthly Income:
“Even if the total is intimidating, don’t fret. It is possible—case studies in the book prove it—to get to more than $10,000 per month in extra income within three months. This is usually 3 or 4 times more than is needed. Getting to an extra $2,000 or $3,000 is seldom a problem.” [This link leads to Amazon. Full disclosure: I earn affiliate commission if you purchase through this link.]
And Tim is right. You can increase your income. I've done it myself too, from scratch—and I'm no better, or no more special than you are.
Should You Get an Audi R8?
The answer to that question is up to you.
For me, I definitely have enough room in my income for an extra $78.03 a day. However, as much as I want to get my dream car now, I would much rather spend that money on a house, my kids' education, and family trips. All of those things are included in an overall “dream sheet” where I break down the costs of each of those things, which I'd love to share with you later.
Priorities are still important to understand. (But don't get me wrong, I still want the R8!)
Additionally, I think I would much rather “save” $78.03 a day for 5 years and invest that money so I could pay for the car in full. Or, work on new income streams that could help me earn an extra $78.03 a day, so I don't feel like I'm taking a loss.
This post isn't really about an Audi R8. It's about realizing what you want, and figuring out how to get there.
The true thinking behind this methodology is that what we do should be determined first by what we want in life, not the other way around. What you want in life is what everything else should be based off of.
Have you sat down and determined exactly what kinds of things you want in life?
Or, have you fallen into the trap of just working for work's sake?