Andrew Hallam’s car buying technique – The 200 words project

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.

AndrewHallam car buying

Source and thanks to:

“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

The Personal Finance Learnographic

First up, the news – We, the Learnographics team, are back with a new learnographic. A learnographic, as you might have guessed, is a synthesis of learnings from a book (or a couple of books ona  topic). In the spirit of starting with “why,” I’d like to share our thesis on learnographics –

We believe that our progress as a species occurs when we find, build and share great ideas. We also believe in the power of learning, reflecting, and sharing ideas in living happy lives. Books are a big source of learning and ideas and we’ve embarked on a mission to spread ideas from our favourite books.

After our first learnographic on willpower last year, we took a bit of a break as we thought about how we wanted to make this process sustainable. Our promise for this year is release 4 learnographics by the end of the year – 2 in the first half and 2 in the second. Producing these is a real labor of love – it involves us reading a bunch of books, synthesizing them, picking a book or two that we think would make for an interesting topic, illustrating them so they are easy to follow, and then sharing them with you.

We picked personal finance as it is a topic that we believe ought to get all the attention it can get. In this case, the learnographic is a synthesis of 6 books, 3 interviews, and 1 blog post.

We really hope you find it useful. Please click on the image below to see the full learnographic.


And, if you like it, please do share and spread the love. :)