Fri 23 Jan 2015
A man walked into a bank in New York City one day and asked for the loan officer.
He told the loan officer that he was going to Philippines on business for two weeks and needed to borrow $5,000. The bank officer told him that the bank would need some form of security for the loan.
Then the man handed over the keys to a new Ferrari parked on the street in front of the bank. He produced the title and everything checked out The loan officer agreed to accept the car as collateral for the loan.The bank’s president and its officers all enjoyed a good laugh at the guy for using a $250,000 Ferrari as collateral against a $5,000 loan.
An employee of the bank then drove the Ferrari into the bank’s underground garage and parked it there.Two weeks later, the guy returned, repaid the $5,000 and the interest, which came to $15.41.
The loan officer said, “Sir, we are very happy to have had and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multi millionaire. What puzzles us is, why would you bother to borrow “$5,000”.
The millionaire replied: “Where else in New York City can I park my car for $15.41 and expect it to be there when I return”
Well thats how the rich stay rich, they know a lot more about Money Management. All the millionaires I have met in my life were penny wise. Look after your cents and the Dollars will look after themselves.
September 14th, 2007 at 8:31 pm
Wow, where do I sign up for a loan with a 0.3082% interest rate…
September 14th, 2007 at 8:56 pm
Great Story! I’m definitely passing this one on.
add your blog to my RSS reader.
September 14th, 2007 at 10:16 pm
Cute story. Unrealistic though. First off, that person probably owns their own place with a garage if they have that sort of money in New York. (If it were on the west coast, he would have several garages for much less money). Secondly, the interest rate doesn’t seem correct. But hey, who knows… maybe that high of collateral allows a lower interest rate? Intriguing though. Though currently I am studying to become a Teacher so the chances of having that sort of money are long in the distance 😛
September 14th, 2007 at 10:24 pm
One would expect a multi millionaire to have a big enough garage at home to leave his $250,000 Ferrari in safely….sounds like a badly thought out anecdote with a cool ending. A good joke but highly unlikely to be factual..
September 14th, 2007 at 10:39 pm
Hehe, nice one! Site added to favs and cheers from Ireland 😎
September 14th, 2007 at 11:52 pm
Genius. All about saving the dolla dolla bills.
September 15th, 2007 at 2:15 am
[…] Visto en FortuneWatch […]
September 15th, 2007 at 2:24 am
photo or it didn’t happen
September 15th, 2007 at 2:27 am
[…] is how millionaires thinkread more | digg […]
September 15th, 2007 at 2:28 am
It never ceases to amaze me how gullible people are…
It’s not true, no bank would ever physically hold collateral when they can simply put a lien on the title.
Wake up people.
September 15th, 2007 at 2:30 am
If he was really bright, he would’ve found someone to RENT the car to, and made REAL PROFIT from the deal, instead of having to pay anything.
Plus, I call shinangans. If you make a lien on a car, they take your title, not the car.
September 15th, 2007 at 2:31 am
Well, let’s see. The loan probably took about an hour. Two weeks parking in Manhattan costs what, $280? So you’re saying that millionaires think their time is work less than $280/hour? GMAFB.
The fact is that millionaires don’t think like this at all. First of all, they don’t own Ferraris – those are owned by people who are in debt, and by people who think of a million bucks as pocket change. Millionaires tend to drive sensible cars that are cheap to insure, because *that* saves money, and you don’t have to worry about them being stolen.
People whose wealth increases think in terms of “how could I take this money and get more money for it later.” And “how can I spread my risk so that when this dumb idea doesn’t pan out, I don’t lose my shirt.”
What this kind of thinking does is to help people who are never going to be millionaires to be satisfied with their lot in life, because “millionaires are cleverer than me, and that’s why they’re rich, and I’m not.” If you actually want to be a millionaire, that kind of thinking has to go. You have to believe that it’s possible.
Of course, becoming a millionaire is a good way to waste your life, but that’s another story.
September 15th, 2007 at 2:35 am
Interesting story, but I disagree with the conclusion. Not all of the rich are financial geniuses or even penny-wise. People such as Paris Hilton are the exact opposite. Those types either have so much money that they could never spend it all or they have smarter people than themselves managing their money, people who aren’t necessarily wealthy themselves.
September 15th, 2007 at 2:53 am
However funny. this is such an old joke, guess millionaires cant find their own stories.
The one i heard some time ago was with an older woman and a Rolls Royce.
September 15th, 2007 at 2:55 am
Would have been a better story if he was trying to park his $400 ford escort and borrowed $300 instead.
If he was THAT thrifty, he wouldn’t have a Ferrari!
September 15th, 2007 at 3:14 am
Your story just served as a fantastic anecdote at a family gathering and a great laugh… thanks for the material
September 15th, 2007 at 3:21 am
I’m going to do this with my Ferrari!
September 15th, 2007 at 3:25 am
If i wanted more traffic to my blog and become rich i would have to post some comments on every blog there is out there! 😯
September 15th, 2007 at 3:28 am
[…] penny wise. Look after your cents and the Dollars will look after themselves. Original Link: Fortune Watch
September 15th, 2007 at 3:36 am
[…] Fortune Watch » How a Millionaire’s Brain Works… (tags: money funny business parking article fun humor tips entrepreneur *) […]
September 15th, 2007 at 3:37 am
I’ve had a good laugh after such a long tiresome week and finaly its friday. Still laughing as I’m typing this. Job executed perfectly. I see the path to being a Millionaire!
September 15th, 2007 at 3:43 am
This story is cute, but it also must be fictitious. If a guy lived in NYC with a $250K car, he would have a place to park it already. Or what, are we to assume he parked it on the street?
September 15th, 2007 at 3:50 am
Wow great post! 😯
September 15th, 2007 at 3:54 am
True or not it is an inspiring story to illustrate thinking smarter and not working harder.
September 15th, 2007 at 3:55 am
It’s time to do a brain surgery. 😉
Liz
http://www.prankvideoz.com
September 15th, 2007 at 3:57 am
future loans will require brain x-rays 😆
Pam @ http://iwannamakemoneyonline.com
September 15th, 2007 at 3:57 am
That’s why he is a millionaire! Smart.
September 15th, 2007 at 4:01 am
It’s true the rich are a bunch of penny pinchers, but this is more of a scam artists type of thing. Low profit, and what guy would trust his 250,000 car just to save 50 bucks on parking.
It’s a funny joke though, but it’s clear that the person who wrote the joke doesn’t think like a millionaire, because as I said whats the tiny parking fee to a guy who’s tires cost like 10k a set or more. The wear the random employee who drove it to the parking garage put on it alone wouldn’t be worth the savings. Who do you trust to drive your 300+ horse power car and then not fuck around with it while you’re gone ?
Rich people live lavishly and parking your car in some place like that isn’t lavish or posh at all, it’s some kind of white trash lottery winner scam. Haha I showed you. I lent your company my quarter million dollar car so I could save on parking … yea.
If the guy was a real penny pincher, how did he ever manage to buy suck an overpriced car?
September 15th, 2007 at 4:04 am
This would never work. No bank would ever impound your car like a pawn shop would. The bank would keep your title and tell you to drive your car somewhere else. When you repay the loan they give you the title back. If you skip, you can’t sell the car without the title. This urban legend doesn’t work!!!!
September 15th, 2007 at 4:11 am
Very funny
But in real life banks charge loan fees and early payoff charges and the like. You cannot really borrow $5k for $15.
September 15th, 2007 at 4:19 am
The millionaire thinks in terms of TIME, not MONEY. Once you have enough money, time quickly becomes far more valuable than money.
Would a millionaire rather pay $15.41 cents to the bank for the 2 weeks parking (loan interest) — or $475 for two weeks in some private garage?
Well, if the loan process took 1 hour (waiting in line, filling out forms, etc.), but the private garage deal took 5 minutes (including a ride to the airport), the millionaire would most certainly opt for the private garage. Yes he would pay about $457 MORE for the garage, but those 55 minutes are worth FAR MORE than a measly $457.
Anything less than a few thousand dollars is petty cash to a millionaire. Anything less than 50 – 100 thousand dollars is petty cash to a billionaire. At the petty cash level, all purchasing decisions are governed by time. That is why a millionaire will pay seemingly exorbitant amounts of money for simple little things. It saves them TIME. And if you save enough time per day, it adds up to MILLIONS of dollars worth of time.
The mindset in which you discover a way to park a car for two weeks for $15, regardless of how much time it takes to do it is the mindset of a POOR person. Poor people always have to find cheaper ways to get things done even though those ways may take HOURS longer. Poor people lose so much time, and to them, money is far more valuable than time.
Also, it is a very bad choice to trade a $250,000 piece of collateral for a $5000 loan. What would happen in the event of a major disaster? What if the millionaire had an enemy who hacked into his bank accounts and stole all his money? (Or something else more plausible?) What if that 0.001% chance of tragedy happened? Well then the guy loses his car. If he had paid for the private garage, he could have at least recovered it right away and sold it. (The bank may pay the guy the difference in this case, but I’m not sure about that, and it would probably be much more of a hassle anyway.)
Millionaires spend MORE money, not LESS. They spend more to save time, and they spend more to get TOP CLASS service. A millionaire won’t look for a deal in Vegas, for example. He’ll spend lavish amounts of money on entertainment, but he’ll get EVERYTHING: High roller status, 15 women hanging off his arms all night, full bar, penthouse suite, etc. He might even DOUBLE his expense, and put the doubling amount on black, and gain a 48% chance of winning that, and getting the whole affair for free.
If the millionaire is rich enough, he’ll quadruple his bet if he loses at first. If he loses a second time, he’ll octuple his bet. Eventually he’ll win.
He starts with a $25,000 bill for the weekend. He puts another $25k on black. 50k total. He loses. He’ll then put another 50k on black (100k total.) He loses. Even if he loses two more times, and puts down $400,000 on black, and wins, he just won all his money back and got the $25,000 weekend of fun for free. (Actually he probably would get PAID to have all that fun, because he would’ve bet a few thousand dollars higher, e.g. $55,000 instead of $50,000, so that he doubles that extra amount when he wins.)
A poor person might take a lifetime to vacation to 25 different places in the world. A millionaire could hit all those spots in 1 or 2 years, and have more fun every time. Therefore, the lifetime experience of a millionaire is 25 – 50 times more than a poor person. (E.G. a 50 year old poor person = 2,500 year old rich person.) However the rich person is also 50 years old… he just has the life experience of a 2,500 year old poor person. (Meaning it would take 2500 years for the poor guy to have as much experiences as the rich guy did in 50 years.)
Basically life is miserable poor when you see how much the rich can do. The life of a poor person is like an 800 baud modem whereas a rich person’s life is like a DS3 connection.
I’m poor (compared to the rich) and working, investing, and thinking every day to become rich. It’s miserable in the meantime. The only thing that keeps me going, and keeps me happy, is watching videos of Darfur, horrible accidents (like Christopher Reeve), Katrina, etc. etc. Watching those things reminds me how lucky I am just to be healthy, have a decent job, and decent life. But I must work every day to become a millionaire because life is just a shadowy, sparse, brittle thing compared to their lives…
September 15th, 2007 at 4:29 am
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September 15th, 2007 at 4:32 am
kjd: He paid it back in 2 weeks, so the annual rate was much higher than that.
September 15th, 2007 at 4:38 am
I live and work in NYC and I cannot believe a man flashy enough to drive a Ferrari, in the city of New York a mecca of self importance, would EVER go through all this to park a car. He would probably leave it for the concierge at his tony building to park with his fleet. Honestly, who has just a Ferrari. Come on people get some sense. Think about the importance of money to a guy who drives a hugely inappropriate car like that. GET A LIFE.
September 15th, 2007 at 4:44 am
Banker should have keep the deed and not the car.
September 15th, 2007 at 5:15 am
Hey, kjd, where do you get .30% for the interest? The fifteen bucks paid is two week’s interest on an 8% APR loan.
September 15th, 2007 at 5:34 am
Cute story. It also demonstrates the art of making a deal. You usually have to present it so that the other party feels like they are taking advantage of you because most people are more interested in that than in a win-win deal.
September 15th, 2007 at 6:29 am
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September 15th, 2007 at 7:22 am
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September 15th, 2007 at 7:27 am
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September 15th, 2007 at 7:41 am
The question is not whether this is or is not how millionaires think. The question is: Do all millionaires think in the same way?
September 15th, 2007 at 7:45 am
um NO
the rich stay rich because of USERY, ie making money off money. returns on investments. interest. inheritance.
what a crock.
September 15th, 2007 at 8:00 am
I would have rented the ferrari for 2 weeks..making 1000$/day
September 15th, 2007 at 9:22 am
Blog: A priest walks into a bar…
Not-too-bright commenter: Why would a priest walk into a bar? A priest would never walk into a bar for the following reasons:
1. *Reason showing why I am no fun*
2. *Reason showing why I spend my time on blogs all day instead of talking to other human beings.
3. *Reason number three proving I spent the time to think of three reasons to prove how much of a loser I am.*
September 15th, 2007 at 10:53 am
[…] Fortune Watch » How a Millionaire’s Brain Works… […]
September 15th, 2007 at 11:22 am
ha ha good story
read some of the Robert Kiyosaki’s books
they are full of such stories
September 15th, 2007 at 2:38 pm
Yeaaah,
The only problem with this whole story (well, there are many, but the glaring problem) is that when you give the bank something for collateral, THEY DON’T TAKE IT UNLESS YOU DON’T PAY YOUR LOAN! A mortgage is essentially giving the bank your house for collateral. Is the teller at the local Citibank living in your dining room? No. How many of you have car loans? You are still driving your car, right? They aren’t sitting in the garage at GMAC financing headquarters?
So, cute story, but entirely fiction.
September 15th, 2007 at 4:05 pm
[…] Read the story here. […]
September 15th, 2007 at 4:09 pm
[…] read more | digg story […]
September 15th, 2007 at 4:34 pm
Why dont leave the car at home?