206 replies to this topic

[mylo]

Hey, Mylo - what kind of car did you get for $7K?

Great condition!

[ChipShot]

Great condition!

Looks like an OK car....what's your Windex bill ??

[bishmasterb]

Since the thread is about saving, not about how cool new cars are, it's important to point out that buying cool new cars frequently is not consistent with building wealth. The authors of The Millionaire Next Door found that half of all millionaires in the U.S. had never paid more than $25,000 for a car (as of 1999), and many of them bought late model USED vehicles after the initial huge depreciation, taking advantage of the financially foolish behavior of others.

Buying a new car, especially every 2-3 years, is financially STUPID. There simply isn't any other way of looking at it.

With that said, I tend to buy a new car every 2-3 years. But, I recognize that it's stupid behavior influenced by my emotional attraction to driving new cars. Perhaps Missouri will break me of this habit...

[Orangetj]

Sweet! What year is that? That looks like it might be easier to use to haul a crusty old lawnmower around as well! Seriously, nice ride.

[ChipShot]

With that said, I tend to buy a new car every 2-3 years.

I'm an "every 6-7-8 year guy". Any more than that and the wife would want one too.

[bishmasterb]

I'm an "every 6-7-8 year guy". Any more than that and the wife would want one too.

Then you're well on the correct side of the curve. You should go ahead and buy used too, what difference would it make, besides saving you a bundle up front, to buy a used car with 5-10K miles on it? If you're going to drive it for 8 years anyhow?

[mylo]

Sweet! What year is that? That looks like it might be easier to use to haul a crusty old lawnmower around as well! Seriously, nice ride.

Yeah, and it fits a fullsize washer + dryer!

[mylo]

Looks like an OK car....what's your Windex bill ??

1 bottle RainX, love that stuff! 7 seats for when the kid has little friends

[Nylaan]

Since this is a thread about building wealth, I will give my secret for saving money that will make the maybe $500/yr extra I spend to have a reliable car look like chump change, in order of importance:

1) Avoid child support
2) Avoid children altogether
3) Avoid divorce
4) Avoid marriage
5) Avoid relationships

I know I'm the butt of all gamer jokes, and I didn't exactly foresee my life working out this way, but I don't think I would even have even half the net worth I do now if I'd been in a major relationship since college. Do you have any idea how much money I save?!?!?!

For the record - I actually do want kids and I'm fairly disappointed that hasn't worked out.... just stating the obvious from a financial perspective though

edit.... thought i'd add one more to the list....

[mylo]

+1 for all of the above!

[cw68]

Perhaps Missouri will break me of this habit...

They might not break you of it, but you might start buying a Chevy every couple of years.

[stacycam]

I just LIKE having a new car. Just like a new house. Many financial decisions are not based solely on depreciation or even logic. Kids being #1. Those are the two worst financial decisions I've ever made! (Wouldn't change a thing , though)

As for saving money:
cut back or eliminate cable/satellite
no cell phone or share one for emergencies
use coupons and shop sales
cut back on eating out
go on low cost vacations, like camping
line dry clothes
use the library instead of buying books or renting DVD's.

That's all I have for now. I have to get my two financial mistakes to bed.

[folsombound]

I disagree, sort of. Life's too short to drive something dumpy and unreliable. I just bought a new car (not something used with all the unknowns) and couldn't be happier. There's a price I'll pay for quality, peace of mind, reliability to take road trips, and all the newer state-of-the-art bells and whistles. Hey, to each his own.

+1. There are some luxuries that you earn. I bought my last car new almost 11 years ago. Next Spring I will buy another new car with the intention of keeping it even longer. I like the feeling of breaking in my own car and not having someone else's.

[folsombound]

Then you're well on the correct side of the curve. You should go ahead and buy used too, what difference would it make, besides saving you a bundle up front, to buy a used car with 5-10K miles on it? If you're going to drive it for 8 years anyhow?

There is that inner pleasure of buying new and breaking it in yourself. I have a car that I bought new nearly 11 years ago that still runs like a charm. Next year I will sell it and buy another new car. I get my use out of them and then some but I like buying new(and I will pay cash).
There is a lot of great advice here but everyone should step back and remember that life is uncertain and that you should not deny yourself everything in the name of saving. Live life and enjoy it and if that means splurging once in a while, don't hesitate to do it within reason.

[tgianco]

Since it has not been brought up in this thread at all (from what I can see), also consider the tax implications of what you do, whether it's selling a stock that you've owned for 11 months (after 12 months, it's a long-term capital gain), a home you've owned for 20 months (I believe it's 2 years and less than $250k in appreciation is tax-exempt?) or accepting a trip (I'm supposed to be in Vegas right now through work, but, after seeing that about $2500 would be added to my taxable income, not including paying for my wife's plane tickets, extra for entertainment not included in my employers' program and over $300 for a babysitter for the weekend, it didn't seem like such a good deal... financially).

Also, a 401k issue. Make sure that you don't go over the $15,500 annual limit too early in the year and miss the company match. I