Words of wisdom from my college teacher

The following is a true personal story.

When I was attending Vanier College, my math teacher the late Mr. Horace Mahabir once said during a lecture: "Kids, some of you are now starting to get part time jobs, try not to spend all of your hard-earned wages. Remember to save some of it. And most importantly : ALWAYS PUT YOUR MONEY INTO APPRECIATING ASSETS, NOT DEPRECIATING ASSETS".

At the time, most of us had no clue what he meant by that. So he explained: An appreciating asset is something that will gain value over time, whereas a depreciating asset is something that will lose value over time. When we asked for examples, he said: "A plot of land, real estate... those are appreciating assets, but a new car is a depreciating asset, the minute you drive it off the lot, it loses 30% of its value". There went my dream of owning a white convertible Corvette!

Looking back, I realize that those were true words of wisdom. Of course we were all 17 or 18 at the time and most of us were saving up to buy the new Motorola cellphone that use to weigh something like 5 lbs. But I'm pretty sure other students remember this lecture too. It was way more interesting than the calculus and algebra classes we were used to.

The idea is to put your savings into something that will appreciate. And lately GIC rates are not very appealing, and let's not mention the stock market (not for the faint of heart). Remember the words of the wise: "APPRECIATING ASSETS".

By the way, I still haven't bought that Corvette!

 

Rakel Saad

Rakel Saad

Real Estate Broker
CENTURY 21 Vision
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