Why Most First Time Millionaires Suggest That The First $100k in Profits Should Be Used To Purchase A Luxury Car

For many first time business owners that finally break through financial hurdles and reach their first $100k in business profits, usually make a large purchase such as a high end watch or a high end vehicle. Driving an expensive vehicle is a way to show success through something people can touch and see. Unlike small purchases, a luxury car creates an immediate emotional reward. Psychologists mention that purchases like this can boost confidence and encourage a success driven mindset for future accomplishments.

A Symbol of Credibility and Status

Perception is a fundamental factor of human behavior that cannot be ignored. When it comes to having a symbol of success or a way to show ones hard work and perseverance, it usually can be done with the purchase of a luxury car. This can also be an essential social networking purchase to open new doors from the start of conversations that can be sparked by the eye appealing vehicle. Arriving to a meeting in a Mercedes, Porsche, Lamborghini, Rolls Royce, or Bentley can shift the dynamic of a conversation, especially in industries where image and reputation play an important role. A luxury car is then more than just a vehicle, it is a form of personal branding, reinforcing the achievement of financial success.

Purchasing a luxury car becomes a way of rewarding themselves for the risk taking it took to reach that point. Without making a large purchase like a luxury watch or luxury car, entrepreneurs might start to feel the burden of burnout without reward or lose motivation. For many business owners, a luxury car serves as both a celebration and a motivator.

The Motivation Factor

Purchasing a Porsche, Lamborghini, Ferrari, or Rolls Royce can help in making a sense of achievement. Such daily reminder can be a strong motivator to keep striving to in ones venture and expand their business to grow and scale. Hence, the purchase of a luxury car then becomes an investment in mindset. The fear factor of losing such a prized possession can also motivate entrepreneurs to remain disciplined and ambitious in their business pursuits. 

Not everyone agrees that the first $100k in business profits should be spent on a luxury car. Although money can be better spent on investments such as real estate, or stocks. However, some business owners argue that the value of a luxury car goes beyond finances. They see it as an investment in themselves, their image, and their mindset. In other words, while the car depreciates, the inspiration it brings can lead to much greater wealth creation for the future.

A Luxury Car as a Networking Tool

A luxury car can work as a networking tool since these eye appealing cars often attract attention, spark conversations. Hence, A luxury car can be used as an icebreaker, leading to collaborations, or investment opportunities. This social capital can be used to gain a competitive edge in business since sometimes in business, who you know, is just as important as what you know. By purchasing a luxury car, entrepreneurs sometimes gain access to social circles.

For many business owners, a  Porsche, Ferrari, or Lamborghini is a symbol of proof that their vision was worth putting in the hard work and that they were able to accomplish what others might have doubted.

Once the first luxury car is purchased, many entrepreneurs then concentrate more on scaling business operations and generating more cash flow through new revenue streams or improved services. That being said, purchasing a luxury car is not just a splurge but a well calculated high end reward.

It can be easy to argue that the money could be put to better use. Yet from a psychological standpoint, the purchase can bring benefits that far outweigh the vehicles depreciation. For most first time entrepreneurs that become successful, the purchase can be about celebrating a milestone, and less about the cost and more about what it represents.

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