I just got my new Lexus RX400h, and returned to the dealer the next day, complaining that I couldn't figure out how the radio worked. The salesman explained that the radio was voice activated.
"Watch this! He said, Nelson!"
The radio replied, "Ricky or Willie?"
"Willie!" He continued....and On the Road Again came from the speakers.
I drove away happy, and for the next few days, every time I'd say, "Beethoven!" I'd get beautiful classical music, and if I said, "Beatles!" I'd get one of their awesome songs.
One day, a couple ran a red light and nearly creamed my new car, but I swerved in time to avoid them. "A##HOLES!" I yelled.....
The French National Anthem began to play, sung by Jane Fonda and Michael Moore, backed up by John Kerry on guitar, Al Gore on drums and Bill Clinton on sax....
I love this car!!!!
Well, he's an Engineer, single, lives frugally, handles his money well, had enough to put down on a house back before 2000, and he's now in a position to take some of the equity and make a buy. So, I wouldn't say it's "extra" money he's got laying around, but he's being smart about putting his equity to work for him. In principle, if you've got more than six-months of income just sitting around idle -- in any form -- you're wasting money. That money should be working for you in some way, and the wise steward will take counsel about how best to put it to work.
The paramount concept in all of this is "delayed gratification"; NOT buying all the latest bling-bling today, in exchange for being able to do something sound with the money tomorrow. Sadly, that's a lost concept on most people. They've just GOT to have that new car and, when they get to where they can just barely afford the monthlies, they go get it. Nevermind the huge hit hey'll take in depreciation over the first two years, no, those thousands ar immaterial. "Pay no attention to the man behind the curtain!" That digital flat screen HDTV -- gotta have one today and, "Hey, guess what? I just got paid! Good Guys, here I come!" Oh and, of course, there just HAS to be a surround-sound system to go with it.
Then people are all bitchy and confused when their credit card bills keep growing, month on month, and there's never anything in the savings account besides the $50 they put in there when they opened it.
Our spending and saving habits are, for the most part, fiscally ruinous and, yet -- the icing on the cake -- we have the unholy flaming gaul to berate Congress for doing precisely the same thing at the National level.
IT'S COMPLETE INSANITY!