(I had this post in the queue for some time, but was motivated to post it sooner after my friend asked me about investing.)

See the cover photo? That is the car I currently drive, and have been driving the past eight years. It is not exactly the most appealing-looking car, nor is it the ideal car to take someone on a date with. Colleagues, family members, and friends suggested that it be traded for a newer car that is “more hip”. While I appreciate their thoughts and concerns, there is one reason why I am still driving it: opportunity cost. Every decision we make in our lives has an inherent cost, and trade-off in the future. In this case, a newer car would mean a monthly car payment, a higher insurance premium, increased title and registration costs, and a greater depreciation cost during the first years of ownership.

The year was 2007. My mother had started her new job after we moved back to West Coast. Money was tight at the Sauce household, because of over-priced rent and my mother’s modest wage. We would go to Costco about once a month to purchase groceries, such as bottled water and laundry detergent. Vitamin Water was a very popular beverage at that time, and I was interested in buying a bulk case of the drink one time we went. My mother did not want to purchase the case of Vitamin Water, because it was not part of the budget. We got into an argument, because I thought my mother was being too cheap, while my mother simply did not want to get into debt as money was tight.

Looking back, that moment was a turning point in how I viewed money. I did not want to have a life where I get into arguments for the sake of money, and lose sleep over not having enough savings. Over my college years, I further honed frugal habits to save parts of my allowance, so that I can splurge when I feel the time requires it. Frugal habits included drinking a cup of water instead of purchasing a fountain beverage saturated with sugar when eating out. Not over-indulging in fads at that time, such as Pinkberry Frozen Yogurt and Starbucks Frappucinos. Enjoy wearing Nike sneakers, rather than having a collection of Jordan basketball shoes. Avoid purchasing the latest electronics, if not needed. Those frugal habits developed over the years fostered self-control and appreciation for what I already have.

Do not get me wrong. I like new things. Driving a newer car is fun. The added interior space, more powerful engine, and premium audio system with Bluetooth connectivity compared to my current car make me feel good. I would rent a car once in a while to take out-of-town solo weekend trips. I get a thrill speeding down the highway from New Jersey to Maryland on a late night listening to the Jane Doze remixes, shaking my ass to the EDM beat. But with everything in life, there is an opportunity cost for that moment of euphoria. The added interior space and more powerful engine mean lower gas mileage, resulting in a higher gasoline bill.

Before I landed my first job in 2011, I promised to myself that I will have a new car once I received my first paycheck as a reward for all the hard work in college. The car was going to be a Lexus GS 350. But when I moved across the country to begin an adventure after graduating school, my promise changed. The money spent on shipping my car from the West Coast, insurance, title and registration, all presented a different perspective to consider. I then asked myself, “What if I saved the money I would have paid in a new car, and invest it?” I read books and articles on investing, devouring the information to foster habits of saving.

One of the secret sauces I found to living a fulfilling life is being content with what I already have. Keeping my seventeen year-old car has kept me grounded, and in some ways, humble in the way I carry myself. I learned about maintaining my car, without relying on the car dealership to tell me what is wrong with my car. From refilling the motor oil every 2500 miles, because my car inevitably burns oil. To replacing the broken door handles and outdated stereo system. To refilling freon in the air-conditioning system, because the system has a small leak, which resulted in a low amount of refrigerant.

It is nice carrying a quiet confidence that the money saved will provide me with additional options later in life.

Having those options (as a result of saving money) open a myriad of opportunities, such as:

• Being okay if I quit a job or if I get fired
• Having the leverage to change jobs
• Having the means to take an extended vacation or sabbatical (Europe, anyone?)
• Having the means to pay for graduate school, without being obligated to work for a company
• Having the means to treat others for lunch or dinner, or be generous with gift-giving without breaking the bank
• Realizing there are more important things in life than making money: nurturing relationships, making lasting and positive impacts in peoples’ lives, writing Noy Sauce, etc.

I am certain that I will purchase a newer car in the near future, but for the time being, I will bask in the appreciation of making short-term sacrifices in exchange for more “gifts” and options in the long-term.

I plan on making a mini-series of my journey into investing, because I feel like personal finance is one thing everyone must learn about, yet is not taught in school, and I feel like one personal success I achieved is best shared to those willing to learn about it.