Professor at the Bucharest Academy of Economic Studies, Cristian Păun, criticizes David Popovici’s decision to buy a €150,000 Porsche Spyder.
The economics specialist believes it is an extremely ill-advised decision, suggesting that it would have been better for him to buy an apartment in the center of Bucharest and rent it out to achieve financial independence. Alternatively, he could have invested in a business or the stock market.
Păun emphasizes that basic economic education is essential and gives the example of another Olympic champion, Ana Maria Brânză from fencing, who invested her money much more wisely.
Here is the post from Professor Cristian Păun's Facebook:
"David Popovici received €140,000 from the Romanian Government (meaning from all of us) and a Corolla from the sponsor Toyota.
He bought another car. A €150,000 Porsche Spyder. His "dream" car. He didn't like the Corolla. It wasn't his "dream" car.
He paid around €22,000 in VAT for it. He lost 20-30% of its value from the moment he drove it out of the seller's gate. The annual insurance for such a car costs several thousand euros.
All the tabloid press admired the news. Not a positive news, though.
As an economist, I consider the decision extremely ill-advised. It would have been better for him to buy an apartment in the center of the Capital and rent it out. He would have gained a long-term source of income. Or he could have invested with others in a business. Or invested in the stock market, here or abroad.
He would have gained financial independence, not dependence on a luxury car that he always drives with fear, afraid to park it on the street, for which he doesn't yet have the resources to maintain in the long term.
I know, people have the right to do what they want with their money. It's theirs. They earned it through hard work and sacrifice. However, the way he threw it away makes it seem like he earned it easily. Many like him, winning the lottery, ended up on the streets, in the end. Most of them.
That's why economics, basic economic education, and discussions with economists are important. Economics is the science of life that helps you survive longer, enjoy more, and understand how to set and pursue your goals as best as possible, always with limited resources.
A similar case, but completely different, is that of Ana Maria Brânză (14 gold medals). I was talking to her at FIT (Finance in Layman's Terms - the video series "For All the Money") that her parents guided her financially. They didn't allow her to do such things with the money she won from sports prizes. She invested it, bought a house, later opened a business...
The choices you make are extremely important! Especially when you are young..."