This is the first post of my 2005 yearly update on my road to becoming a millionaire. Follow along over the next few weeks to see what I did in 2005 to help me become a millionaire before I was 30. Also please continue following me in coming months to see the full picture as I lay out all of my personal financials.
We lived in a rural area in New York’s Hudson Valley. The trip between my house and work was picturesque to say the least. Not a single stoplight, nothing but rolling hills and vegetation. With the exclusion of the beginning and the end of the trip all the roads where 55mph, even though you would not dare go 55 on some of these winding roads. So with all of this beauty and splendor there also comes…….
One particular day I had to head into work for a meeting. It sucked having to go back into work for a stupid meeting, especially when most of these meetings never accomplished anything and really had no purpose, so I was pressing my time at home hanging out with the family. I left just barely enough time to make it to the meeting but I had to push my speed a little. I was heading around a corner, I am sure going faster than I should have been and there it was…
Several deer right in the middle of the road.
Between the curve in the road, my speed, and hitting the dear I lost total control of the car. I slid all over the place, ended up smashing through a few trees and going down into a deep ditch.
It was a two lane road with no shoulder and I was driving about 50 on a corner that I should have been driving closer to 30. Even if I was going 30 I still would have hit that deer, it just wouldn’t have been as bad.
I remember sitting in my car, almost upside down, in the ditch for a bit thinking what the heck just happened. Then someone drove up to see what happened. I climbed out of the car in a bit of shock still not totally sure what was going on. It was a crazy experience for sure. I was very lucky that I made it out untouched.
Once I finally got my head straight I was pretty bummed out that I just lost a car. I had full coverage on the car but I was worried about the dealing with the insurance company.
Would my rates go up?
What was the deductable?
Would they cover all the damages?
Would I lose my insurance?
Being the first time I ever had a car accident I was over worrying about everything.
But everything worked out great in the end. All my worrying was in vain. Since I hit a deer it didn’t count against my insurance so my premiums stayed the same. The deductable was only $500 and they appraised the car for a lot more than I paid for it. In about a week I got a check for six thousand, it was sweet.
At the time, living out in the country, we felt we needed to have two cars. So Corinne and I went out looking for a used car. We ended up finding a used 2000 Chevrolet Impala that was in great shape for less than the 6K. Of course I talked him down a bit. Once you account for the cost of the car, registration, and taxes we ended up spending $4,200. We took what was left over and put it in the bank. It felt good adding to our cash reserve.
We had around 40K in the bank and we could afford any car we wanted. Instead we found a cheap car that worked great and made money off an otherwise bad situation.
So with a six thousand dollar insurance check what would you do?
Would you put it as a down payment on a more expensive car?
Would you see how much you have in the bank and add it to the total to get a better car?
Would you just go without and bank the money?
I could go on but leave a comment below with what you would do.