109 RULE 3 TAKEAWAY

The Big Takeaway from Rule #3

I don’t like to invest more than I am willing to lose and I’m not a big fan of debt.

I have to assume that I can lose all of the money that I put into any venture. Therefore, I only invest what I am willing to lose.

Paying cash for cars allows me to manage that risk because I’m playing with my money not the banks. I know exactly what I am investing and that allows me to manage the risk from start to finish. I can negotiate better deals and I can liquidate at any time.

I would hate to be in a life situation where I could no longer be a Turo host but I owed monthly payments on 2, 3, or 4 cars. Not the financial situation that I want to be in.