Here’s this week’s 200 word idea from The Millionaire Teacher by Andrew Hallam and Decisive by Chip Heath and Dan Heath.
Andrew Hallam, a school teacher and self-made millionaire, became wealthy with careful control over his spending (and consistent investing in index funds). One of his decision making strategies is to attain distance before making big spending decisions.
For example, in 2002, when he was ready to buy a car, Andrew refused to let himself be hoodwinked by fast talking car salesmen at the store. So, first, he decided exactly what he wanted in a used car: namely, a Japanese car with a stick shift, original paint, fewer than 80,000 miles, and a walk-out price of less than $3,000. He didn’t want a new paint job because he worried that it might hide rust spots or damage from accidents and he didn’t care about the age or model of the car.
He then called up second hand car sellers and told him what he wanted. Many baulked at his request. But, a few days later, one of the showroom offered a second hand Japanese model that had just arrived at their store for $3000. Andrew went to the store, inspected the car and walked out with the car.
As Andrew attests, attaining distance is a great way to make good decisions.
Source and thanks to: www.EBSketchin.com
“Imagine wandering onto a car lot…. A sharply dressed salesperson will soon be courting you through a variety of makes and models… a minnow like me needs an effective strategy against big, hungry, experienced fish.” | Andrew Hallam