LOL. I drive an 11 year old vehicle. Not a piece of s~~~ either. A Cadillac Escalade. Totally paid off years and years ago. Sure, there’s a repair here and there. But that’s nothing compared to the last car I leased. $500/month, then you have to give it back or pay $20,000 to keep it? No thanks!
Nice man. It saves you so much money getting longevity out of a car. My last car I bought when it was 2 years old and drove it for 12 years…it just got to a point where it was going to need some money put into it and not really worth it anymore so I traded it in and bought another 2 year old car that hopefully I’ll get 10+ years out of!
Grand total I’ll hopefully spend to buy 2 cars that will both last me 10+ years…25,000. Meanwhile when people lease or perpetually have car payments that average out to let’s say 500 a month…they’d have spent 120,000 over a 20 year period, with a decent chunk of that not even paying for cars, just paying interest and fees. And what the f~~~ for? While they end up working an extra 2-3 years of their life to pay for it…they’ll look nicer going to work in a fancier car? Meanwhile my money is going to be building up in the bank compounding. I think we all know to some extent debt is slavery but so many people love putting the shackles on voluntarily just because they want stuff now and don’t want to save for it.
Renting is a HUGE waste of money. I’d rather own a shack then rent a mansion.
Oh yeah this one is huge too. So many people get stuck with the mind set that 200k in a house isn’t going to appreciate as 200k in stocks…but the truth is a 1000 dollar mortgage builds you equity while 1000 dollar rent leaves you with nothing to show for it. Plus at some point the mortgage is paid off and you have a super cheap place to stay where as rent just perpetually increases. I know when I bought my place my monthly expenses to own were roughly the same as renting, about 700/month either way. Owned outright cost of ownership is about 350 a month and rent is about 850-900 for something similar. I bought right before the crash and I don’t even care because the amount I’ve saved vs paying a more expensive rent the whole time more than covers the decrease in property value.
The beauty of it is that the longer I stay here the more buying vs renting pays off. At this point if I want to move…maybe an upgrade, maybe just something closer to work…I have options. If I get another sub 3% loan I’ll just string it out for the duration, sell this place, and throw the proceeds in the market. If rates go up a bit I can just sell this place and throw the money at the next place which would leave me with little to no mortgage. Renting wouldn’t give me those options as I’d have 0 equity and get nothing on my way out the door.
Honestly I’ve gotten to the point where I would be attracting quite a few gold diggers if I dressed the part.
Thank god many of them are too stupid to understand the difference between stealth wealth and a tool digging himself into a pit to look wealthy. If person A has 400k invested earning 5% a year, he makes 20k for essentially for doing nothing and. If person B has 400k in debt with an average of 5%, he has to pay 20k a year to service his debt without even counting what goes towards the principal on whatever loans he has unless he plans on perpetually paying interest only. Person A effectively has a 40k a year higher income than person B plus lower monthly expenses, and the difference could be even greater if person A beats 5% and person B has s~~~ty credit and higher rates.
If they both earned an average income of around 50k…person A now gets to live like he makes 70k a year and person B like he makes <30k a year. Hell person A say f~~~ it I’m done working and have 20k a year coming in still…almost as much as person B who would still be working full time! I know which route I want to take in life…a little sacrifice early on, be responsible with debt, and grow that nest egg!
FunInTheSun 3 years, 9 months ago.
