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This article gives bad advice. It should say "Don't overspend on a car", or, more generally "live within your means" The example of the basketball player who m

This article gives bad advice. It should say "Don't overspend on a car", or, more generally "live within your means" The example of the basketball player who makes $100MM driving a 20 year old car doesn't help. A new car would not alter his financial situation in the least, and he sure didn't get rich by driving an old car. I know people that can't afford to maintain and park a car. They got a job that offers a bus pass for $10/mo - much more affordable than driving their crappy car.

deleted 7y ago
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ogre_codes 7y ago
It doesn't give bad advice, it gives advice based on assumptions about who the reader is. Considering the article is in MarketWatch, I suspect their normal readers are not having trouble making bus fare. As for the basketball player making millions driving a beater, he's a hell of a lot smarter than the pro athletes who spend 20 years driving Lambo's and living in $20 million homes then retire broke. There is obviously a point between those extremes where you are making good money and enjoying (reasonably) good things but erring on the side of driving the paid off car is almost always better.
- seshagiric 7y ago
  Driving a crappy car saves money. Saving money stops you from going broke. So it is indeed good advice, but saving alone may not make you rich.
  - ogre_codes 7y ago
    If you have 2 people who have otherwise identical life choices save car purchase habits. If one drives an older but reliable car and the other buys a new car every 4 years, the one in the older car will be much wealthier. Saving $500-1000/ month in car payments over 10-20 years can make a massive positive effect on your net wealth over time. Whether that means they end up "rich" depends largely on their base lively-hood. For some it might just mean the difference between a modest retirement and not being able to retire at all. If you make a good living, it could easily be the difference between being rich and living paycheck to paycheck. I know a lot of people with great jobs who couldn't be unemployed for 3 months. Just making money doesn't make you wealthy, at some point you have to accumulate wealth and eliminate debt or you can easily end up under-water.
chkaloon 7y ago
Having a 20 year old car by itself may not make you rich, but it sets a habit and expectation in life that you don't need the latest and greatest expensive stuff. Having that attitude can make you rich.

deleted 7y ago

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ogre_codes 7y ago

It doesn't give bad advice, it gives advice based on assumptions about who the reader is. Considering the article is in MarketWatch, I suspect their normal readers are not having trouble making bus fare. As for the basketball player making millions driving a beater, he's a hell of a lot smarter than the pro athletes who spend 20 years driving Lambo's and living in $20 million homes then retire broke. There is obviously a point between those extremes where you are making good money and enjoying (reasonably) good things but erring on the side of driving the paid off car is almost always better.

seshagiric 7y ago
Driving a crappy car saves money. Saving money stops you from going broke. So it is indeed good advice, but saving alone may not make you rich.
- ogre_codes 7y ago
  If you have 2 people who have otherwise identical life choices save car purchase habits. If one drives an older but reliable car and the other buys a new car every 4 years, the one in the older car will be much wealthier. Saving $500-1000/ month in car payments over 10-20 years can make a massive positive effect on your net wealth over time. Whether that means they end up "rich" depends largely on their base lively-hood. For some it might just mean the difference between a modest retirement and not being able to retire at all. If you make a good living, it could easily be the difference between being rich and living paycheck to paycheck. I know a lot of people with great jobs who couldn't be unemployed for 3 months. Just making money doesn't make you wealthy, at some point you have to accumulate wealth and eliminate debt or you can easily end up under-water.

chkaloon 7y ago

Having a 20 year old car by itself may not make you rich, but it sets a habit and expectation in life that you don't need the latest and greatest expensive stuff. Having that attitude can make you rich.