YOLOING, BUT WITHOUT DEBT.

How to make driving Maseratis, (and not only) Financially sustainable.

Maserati GT 2014, www.Maserati.com

 Have you always wanted to drive an aggressive sport car, and leave a good life, but as all the the other Millenials (those born between 1980 and 2000), you struggle with overcharged credit card and long term payments? This post will explain how you can turn your dream into action without trading off a Responsible money management.

William Strauss and Neil Howe in a famous research (Research) described us, the millenials as similar to the generation of the roaring twenties, the era that accelerated the most consumer demand and aspirations. Everything at the time seemed to be feasible through modern technology as well as today.

A survey by market-research firm Harris Poll, showed that last year 78 percent of Millenials paid over their budget to have luxury experience.

This trend had clear effects on the market: Uber boomed, and reached an evaluation of 62.5$ billions (Uber) with the vision to provide a driver (one of the most famous status-symbol of luxury) to everyone. Ski operator Aspen Resorts Inc, a company who managed lifts in the famous resort village in Colorado, went up more than 700 percent since 2009, selling day tickets for 140$, Airbnb Inc, founded with the goal to provide tourists amazing houses at a cheaper price than hotels, had a $25.5 billion evaluation by TechCrunch (Airbnb). In small words?  People want to enjoy the life.

The trade-off of all this fun? Savings. Silicon Valley geniuses understood this, and they boomed, trying to provide smart and cheap solutions for luxurious experiences.

“I don’t put much of my monthly salary aside at all,” told me Tom (Interview 1) when I interviewed him at Ronald Tutor Center. We know he is not alone! More than half of Millennials’ credit-card holders say they carried over a balance. A majority reported having too much debt, difficulty in making payments, and worries about it.

Is solving this problem possible? Can we pursue our high end standards without ending in a terrible recession? Providing an answer for the entire society is hard, but this post will give you smart tips to live as Rockstars, even when there aren’t softwares as a service run by Stanford genius to help us.

Millenials, Goldman and Sachs defined understanding the behavior of this new generation crucial. They recently publish an entire study. http://www.goldmansachs.com/our-thinking/pages/millennials/

How?

It is only about making things happen, and believing that is possible. I will give you a specific example with the car industry to make the core of the message clearer, however yhe strategy suggested is a common behavior people should have in different situation.

The majority of buyers buy cars taking already in consideration that these goods will depreciate over time. Don’t you do the same?  

WRONG APPROACH! You can always win the deal, and gain, but the first rule is being confident, and believing that is doable.

The market is made by people with different needs, dreams, backgrounds, and trade off costs. Price, as a consequence, is never absolute, but it has a range. After the big depreciation the car has along the first months, the value changes slowly. You can make your own price!

You have to be confident, take your time to do research, find a good potential deal, and negotiate it effectively! You can buy what you desire under the average price, you can satisfy your "to do before dying" list, and sell the good after some months (I am sure, at that point, you will have found something else to dream about!). If you are a good dealer, and a little bit lucky, you can even gain some extra green backs.

There are some steps you may want to take to achieve good results.

- Believe in the opportunity.

The rule number one for good dealers is being able to persuade. In order to make it happen you have to strongly believe in the terms you want to obtain.

- Become familiar with second handed car website.

In order to trade efficiently, every smart deal maker has to know the market perfectly. The price at other sellers usually sell, the price at other buyers usually buy, the price of similar cars, are all important factors to be able to drive the negotiation where you want to.

- Analyze website for a period of time to understand the range price of the car.

As I said before, there are no fixed price for pre owned cars and for other material goods. People have different needs and costs. As a consequence, some people prefer to sell cars less or more than the others. It is important to analyze the market, and to understand what are the extreme terms on the market of the item’s price range.

-Close deals with mechanics, suppliers, car washers, document registration agencies.

In order to avoid problems, and to sell the car at the best price, you may want to find the right people to collaborate with. You have to find people in the industry, that make your car perfect at the best price possible.

-Understand when are the most profitable moment of the day to advertise your announcements.

Being the goal of all this time investment, saving money, you do not want to subscribe expensive website to sell your car. Don’t worry! You are lucky! There are really good, free websites where is possible to buy and sell cars for free. The only problem is that visibility is crucial to get the calls, and then the meetings to negotiate and sell. You have to work hard updating your announcement. You want to have it always in the first page specifically when the website has the highest traffic.

-Create a story to sell, and learn how to understand your buyers in order to let them be comfortable in trading.

You are young, and you have to learn how to deal with different people. Every time you will trade with customers with different background. Is up to you to let them feel comfortable and trust you. The best way to communicate self confidence is to tell a story, and let your buyers understand that you are offering them a once in a life opportunity.

As an article published by Bloomberg last week said: Millenials wants to buy fun and experiences, “Experiences help them shape their identity and create memories, to a greater degree than for older generations.” (Bloomberg) Let’s do it!

WE ONLY LIVE ONCE, BUT LET’S DO IT IN A SMARTER WAY!

http://www.goldmansachs.com/our-thinking/pages/millennials/  ACCESS, NOT OWNERSHIP Three words GS used to sum up the economic behavior of the new generation.

 Bloomberg: http://www.bloomberg.com/news/articles/2016-02-01/millennial-splurge-on-lifegoals-giving-leisure-stocks-a-boost

Research: Neil Howe, William Strauss Millennials Rising: The Next Great Generation,2009                                                                       Neil Howe, William Strauss Generations: The History of America's Future, 1584 to 2069, 1992                                                             Airbnb https://www.crunchbase.com/organization/airbnb#/entity                                                                                                              Uber https://www.crunchbase.com/organization/uber#/entity                                                                                                                  HarrisPoll http://www.psych.cornell.edu/2015/12/14/a-wise-guys-guide-to-happiness-prof-thomas-gilovich/                                      Interview1: Thomas is a USC student, interviewed for research purposes only on February 10,2016 at Ronald Tutor Center USC.                                                                                                                                                             http://www.goldmansachs.com/our-thinking/pages/millennials/