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Keeping your expenses low is absolutely a wise financial decision and will leave in you in a better place, all else being equal. But a person making say $10,000

Keeping your expenses low is absolutely a wise financial decision and will leave in you in a better place, all else being equal. But a person making say $10,000 with $9,000 of expenses is not better off than a person making $20,000 with $15,000 of expenses. You can't take your money with you, so balancing between long-term and short-term decision making is crucial. Short-term thinking is common, but blanket statements like this are way too simplistic. The author also misses the major point that buying a car is not lighting money on fire. Yes, it does depreciate, but you also get value of out it in the form of transportation, pleasure, and other utility. That doesn't mean you should blow all your money on a car, it just means you should live within your means, and that you should be sure you are getting good value out of your car for how you spend.

ogre_codes 7y ago
> But a person making say $10,000 with $9,000 of expenses is not better off than a person making $20,000 with $15,000 of expenses. The article doesn't suggest that. The article is in MarketWatch, most people in their target audience are able to make ends meet and are looking towards their future. The idea here is if the reader is earning $100k/ year, drives a paid off Honda Civic for 10 years, they are going to be significantly better off in 10 years than if they buy a $40,000 Camry every 5 years. > The author also misses the major point that buying a car is not lighting money on fire. Yes, it does depreciate, but you also get value of out it in the form of transportation, pleasure, and other utility. It's not just about depreciation, you are also paying a ton of interest, increased insurance, and increased taxes/ fees in most states. Yes, there is a ton of utility, but you can get that same utility for 1/8th as much buying a solid used car or just keeping your existing car nice for another 5 years. The example of the guy making millions driving a beater is extreme, but the number of people needlessly paying 10-20% of their income on car payments is quite high and that's the people this article is targeting.
- perl4ever 7y ago
  I like all kinds of cars, but come on, you buy one $40K Camry in your life, you're not going to need another one. Regardless of how long you keep it.

ogre_codes 7y ago

> But a person making say $10,000 with $9,000 of expenses is not better off than a person making $20,000 with $15,000 of expenses. The article doesn't suggest that. The article is in MarketWatch, most people in their target audience are able to make ends meet and are looking towards their future. The idea here is if the reader is earning $100k/ year, drives a paid off Honda Civic for 10 years, they are going to be significantly better off in 10 years than if they buy a $40,000 Camry every 5 years. > The author also misses the major point that buying a car is not lighting money on fire. Yes, it does depreciate, but you also get value of out it in the form of transportation, pleasure, and other utility. It's not just about depreciation, you are also paying a ton of interest, increased insurance, and increased taxes/ fees in most states. Yes, there is a ton of utility, but you can get that same utility for 1/8th as much buying a solid used car or just keeping your existing car nice for another 5 years. The example of the guy making millions driving a beater is extreme, but the number of people needlessly paying 10-20% of their income on car payments is quite high and that's the people this article is targeting.

perl4ever 7y ago
I like all kinds of cars, but come on, you buy one $40K Camry in your life, you're not going to need another one. Regardless of how long you keep it.