Comments on: One Decision That Can Make Anyone a Millionaire

By: Christine

Christine — Fri, 28 Mar 2008 17:40:51 +0000

I would like to add one point though - you often can not get the 6 year, same interest rate terms on a used car as you can get on a new one. It is why I’ve purchased new the last two times I’ve bought a car - the interest rate was better, and I had the option of longer terms if I wanted them. Oh, and realistic payoff options, not some bizarre ones that charge you interest for the whole loan even if you pay off early (seems illegal to me, but I didn’t question it as I didn’t go that route.)

I also purchased new cars after having the experience of used with more frequent repairs required. That cut into my ability to save money if I was spending it on repairs.

How do you feel about leased cars? Especially if you drive them for business purposes?

By: Grace

Grace — Fri, 29 Feb 2008 13:22:02 +0000

I like your blog, I am hoing to RSS. I am also going to take up your challenge about complaining, I will start tomorrow though, I gotta get things out of my system first.

By: b

Wed, 30 Jan 2008 20:52:58 +0000

Erica,
geat site, love your articles. I completely agree with most of the things you write and I just wish more people like you would decide what gets taught in our public schools.
Now, that being said: 200 bucks a month for a lot of cash in 40 years. Another 400 bucks for college for the first kid in 15 years. Another 300 for the second kid’s college in 18 years. Say 200 into 401k especially if my company matches, it’s a sin not to do that. 200 on top of the required mortgage payments b/c it makes a lot of sense to pay your debt off early. Right now we’re talking about saving 1300 dollars on top of the regular payments (mortgage + car + bills + ???, say 2,5k) to make my life easier in 20+ years. So I have spent 3.8k to ensure the infrastructure around me and make sure my life will be easy in the far future. See where I’m getting at? I guess my bottom line is: I’m about to buy a $15.000 car. How can I save 1.3k on the monthly payments?

By: SavingDiva

SavingDiva — Wed, 30 Jan 2008 20:45:37 +0000

Just imagine how much money you would be able to save if you forgo a car and just ride a bike….

I have to admit that I drive a 2000….my friends and family think I’m crazy…and I need to buy a new car. However, I plan to drive it until it dies, and then I’ll think about buying another one…probably used…

By: Russ Gonsalves

Russ Gonsalves — Tue, 22 Jan 2008 14:55:27 +0000

1- Posting to try out my OpenID setup…

2- I’m doing something similar. Getting an A6 for around $8k and paying it off with ESPP funds.

By: http://aeropreneur.livejournal.com/

http://aeropreneur.livejournal.com/ — Fri, 18 Jan 2008 07:21:14 +0000

Hi, I ran across your blog last year, and am back via the magic of RSS. Good luck with your new website, it sounds interesting.

Yeah, despite what they may say, you can tell a lot of folks don’t really think like capitalists by the way they blow money on cars.

You can go too far with this (I’ve heard of millionaires who still drove old cars), but anyone contemplating a purchase should be asking what else they could do with that money.

Of course, this mindset can help you save $$ with other sorts of purchases, too!

By: http://tikitropicana.livejournal.com/

http://tikitropicana.livejournal.com/ — Fri, 28 Dec 2007 21:05:53 +0000

That’s super interesting. Funny how when you analyze these things they can actually make a huge difference!

By: http://technorati.com/people/technorati/marcin

http://technorati.com/people/technorati/marcin — Wed, 19 Dec 2007 21:51:51 +0000

Don’t forget about inflation though. You know how “old people” always go on about how “back in my day, a car only cost $20!”. $1 million in 30 years will not be what $1 million is today. You’d probably need $2 million to get you what $1 million does now.

It would still be nice to have the money though, but doubtful you could retire on it without other investments. I know you’re not saying “this is all you need” though.

Another financial strategy people use is to rent rather than buy, and invest the difference between mortgage payments and rent. Here in Australia, even though rents have gone up recently, I know mortgage payments on the place I’m living in would be about double the rent I’m paying. And probably 95% of that (in the first few years at least) is interest payments - just as “dead money” as rent is.

Anyway, everyone’s situation and financial goals are different - ie. some people want the security of owning their own place NOW irrespective of whether it’s a good strategy at that point of their lives.

Personally I’m going to wait another 5-10 years (I’m only 29 now) and go into the housing market getting a place that will suit my family for the long term (rather than compromises I’d have to make now), with a sizable deposit and a small mortgage that can be paid off quickly.

Wow, that was a longer comment than I expected.. maybe I need to revive my blog

By: sethkills

sethkills — Wed, 19 Dec 2007 06:57:11 +0000

Wow, it’s like you’re psychic! I’m about to buy a 2003 3-series, and all of my coworkers think that I’m an idiot for not spending $500+/month on a new car like they do. Putting what would be my car payments into an index fund seems like the logical next step towards not squandering the savings somewhere else.