While discussing with a few young friends about life and finance, a question popped up and it goes thus:
As a young person, " if you happen to have a certain sum of money enough to buy you either a house or a car, which would you go for?"
As expected, many people gave their different views on the matter. While some said, they would go for a car clearly stating their reasons, some opined that they would prefer building a house.
However, here is my take on the matter. Buying a car isn't a bad idea and neither is building a house a wrong move. Both choices are good but are these the perfect things to do with your first big money? It is one thing to buy a car but how much will the car generate?
My POV
I think that it is better to make investments or go into businesses that will yield money or profits enough to build more than one house plus buy as many cars as possible. Instead of stunting the money by choosing to acquire just one among the two and then it ends there.
Investing in a more profitable thing is far better than buying a car just to pose around town. It is equally better than going to build a house that will generate no income.
Also, before going for a car, you should always think of the maintenance factor. On the other hand, how much profit will building a house bring to your wallet? These are the things to be considered as a young person who is just starting life.
Oftentimes, we talk about sacrificing short-term qualifications for long-term gain. This is a typical scenario. Getting yourself a very fine car or building yourself a nice apartment as a young person is something to pride yourself on. This is a short-term gain to me because none of these two things substantially increases your financial capacity.
Whereas, you can think long-term by staking this money into a promising business or investing it into a solid project. In doing this, you may not see profits immediately but over time, it will bring to you a steady flow of income.
With this income, you can then build houses or buy cars and still have the capacity to maintain them properly.
These are my thoughts on the matter. If you think differently, your views are very much welcomed.