What's a smog check?

Recently, a friend asked me about the process of getting her car smogged. I sheepishly replied that I never owned a car long enough (and old enough) to require that service. In California, smog requirements only apply to cars older than six years from new. Then it’s a biennial requirement. The longest I’ve owned a new car is three. Even the one used car I bought - the dearly departed Porsche 911 GT3 - had one more year to go before needing smog check when I tearfully sold it.

Needlessly to say, cars is where all my disposable income goes. Utterly disposed.

The friend booked an appointment at the gas station down the block from where I live. Good to know such service is available within walking distance (even though I’d have to drive the car there to get it smogged). I’m currently on year three of BMW M2 ownership, so it would be another four years yet before that car has to be smog checked. Will I own it for that long? I certainly hope so, but I said the same thing about the GT3…

2023 is not the year to be extravagant with spending, right? Look at the numerous tech companies laying off workers in preparation for recession that can’t seem to arrive. The unemployment rate - 3.4% - is at its lowest level since May of 1969. It seems people are employed, but just not spending as much. Look at Dell announcing layoffs today, because people are not buying as many computers.

So I’ll be keeping the M2 through at least this year. Previously plan of adding another car to the stable has been put on hold. Sorry, San Francisco: you won’t be seeing a chunk of sales tax from me. Maybe you should cut back on throwing enormous money at the endless homeless problem.

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How long you've had a credit card matters

One of my major New Year's resolutions this year was to implement austerity. The past few years I’ve been highly cavalier with my money, mostly towards doing an immense amount of traveling. I don’t regret any of it as it’s been some of the best times in my life, but what with me turning 30 I figured time was right to store up some cash for headier times.

Midway through the year however I decided I was going to purchase a Porsche 911 in the near future, so austerity could not have come at a more perfect time. Slavishly save money just to then squander it all? That’s just how life works. To paraphrase Ludacris’ character in the Fast and Furious franchise: what’s the good of making money if you don’t spend any of it?

Nevertheless I’m still keeping to my resolution, and it’s been going great. With less expenditure I’ve whittled down the number of credits cards I use to only a few (the Chase line of Freedom and Sapphire cards are awesome). With no activity on the spare cards, I was content to let the credit card company close on them, thinking that it won’t do much damage to my credit score.

Well I was wrong. A few weeks ago I did my periodic routine check of my score on Credit Karma, and a particular item serendipitously caught my eye: the age of credit history. Turns out the length of time a credit card is open bears a positive attribution to the credit score, with it signifying trustworthiness and whatnot. Unfortunately for me, the cards I haven’t been using are the one’s I’ve had the longest.

I can’t let those cards expire now and risk damaging my credit score, not with the need to get financing for the Porsche next year. So in the past few weeks I’ve put tiny purchases on each formerly disused card to restart the closure clock, so to speak. My score is currently in the low 800s, and I aim to keep it that way.

Pro tip: don’t let your old credit cards expire unless you’ve got an equally old credit card you plan to keep using, because it will impact your credit score greatly.

The lonely nights.

Financial goals stop the great

Last week I wrote about not letting fear stop the great: I shouldn't let worries of potential theft deter me from getting a motorcycle and enjoying it fully. But you know what does stop the great? Money. 

For clarification, I've got enough money to purchase a bike many times over (hashtag not so humble brag). Rather it's my financial goals that is preventing me from dropping the few thousand dollars to procure a motorcycle. Currently I am actively saving up to purchase a 911 in a year's time, and with Porsche's pricing as it is, the car will cost dearly. Therefore all discretionary monetary resources I've got must attune to that objective first. 

A motorcycle wouldn't be the first casualty: due to the tremendous need to store up money for the 911, I've had to delay other interests as well. I'm largely done with my Korean studies and had originally chose to learn the piano next, but the keyboard I want costs almost $2,000 dollars so that immediately tabled it for later. I've also stopped buying new camera gear: while I've been pining for a 70-200mm f/2.8 lens for the longest time, $2,600 dollars for right now is better served towards the Porsche. 

Travel plans for this year? There were none. I couldn't part with the cash to do so. Compared to 2017 where I four times took trips out of the country, the contrast is stark. These days I even try to not go out on weekends (not too difficult for a homebody like myself) because that would mean spending more money than necessary. 

Extreme? Perhaps, but it's all dedicated to a singular goal: once I had decided to buy a 911, I knew many temporary sacrifices will have to be made. Such is the condition of being a rabid car enthusiast, though we all have our areas of fiscal extravagance, don't we? A friend of mine is planning to go see The Phantom of the Opera for a third time now that the tour has returned to San Francisco. 

I bet he hasn't the need to perform austerity like I am. So lucky. 

Geometric light play. 

Mechanism for implementing austerity

I have found the best way for extremely frugality: have something impossibly expensive to save up for. 

My one New Year's resolution this year is heavy austerity in my finances. The past fews years have been a bit overboard on the travel expenses, even though I wouldn't trade away a second of the experiences. Nevertheless it was time to refresh the rainy day fund, in preparation to counter any ill events, should they arise. 

First half of the year the resolution was not going so great. I didn't travel anywhere so that was good, but I put some money down for travel later this year, which required a significant chunk (super counterintuitive, I know). Due to various circumstances my mother decided it was time to buy my brother a car, him of still in college and no real income. So towards that end I've fronted and still fronting (insurance is a bitch) some money.

I also bought a few expensive play things as well. Self control is difficult. 

Now the situation has changed. Looking backwards I realize the only times I was able to implement crazy austerity was when I needed to save for something big. Back in 2012 when I decided to buy a WRX STI and needed many thousands in down-payment dollar, every financial decision, big and small, was run through the filter of will it adversely affect my goal. Utilizing that mental mechanism I socked away nearly over 50% of a paycheck. 

So to force myself into frugality, I've pick another big item to save money for. It isn't a house because I have no interest in ever owning, so naturally it's another car. Not a normal-priced car obviously because I can go and buy one now. It needs to be quite expensive: six-figures at least. 

Won't say what the car is because that'll spoil the fun, but ever since I made the decision my austerity resolution is back on track.  

Do you want to save money effectively? Have a huge monetary goal to save towards. 

The architect drew inspiration from the Death Star.