One easy way to burn (a large chunk of) money ...
Some years ago I was talking to my favourite stock broker about ways to make money work harder, pay less income tax, etc.
I asked him to imagine that we were sitting at his dining room table, discussing such topics. There were five $1,000. bills that belonged to him, sitting on the middle of the table. I picked one up, looked at it, flicked my lighter and set it alight.
When it burned down near my fingers, I'd drop it into an ash tray ... then reach for another bill.
Question: how many of them would he allow me to burn before he either,
a) fought me to try to grab the burning bill out of my hand, or
b) grabbed the other (four?) bills to run off to hide them from my inconsiderate, destructive hands?
His rather vehement answer was that I'd get a fight out of him before I'd burned even one!
I suggested to him that, the next time that he negotiated with an automobile dealer for the purchase of a new car, then wrote a cheque for the agreed amount (whether the money was mostly his or mostly the bank's), gave it to the dealer, received the keys to the car and drove it home, that ...
... he'd just burned five of such $1,000. bills.
He looked at me, cocked his head to one side, shook it a bit, thought and said, "You know, I guess you're right".
I said that if he could convince me of a different scenario, I was willing to listen.
I'm not sure whether we discussed that, should he have been able to get the fire extinguished before it had eaten half of the burning bill, he could most likely have had it replaced.
P.S. I hear that auto dealers who arrange for in-house loans to cover such purchases ...
... make as much on the credit deal as they do on the sale of the auto.
P.P.S. Interested in a serviceable alternative?