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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.
by 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 agoIf 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.