Avoid Expensive Items

 

If you have an appetite for expensive things, it has to end.  You cannot go finance a new car without knowing just how much that vehicle will cost after you make all payments of principle and interest.  The $30,000 car ends up costing $40,000 (because of the interest added on), but is worth only $10,000 after you finally get it paid off.  In the end, you will experience a net loss of $30,000.

 

Even worse to consider is, if you had opted to drive a beater for a few years and saved the payments you would have made, how much money would you have now after the bank pays YOU the interest?  What if you invested half that money you saved and purchased a two-year-old model of the car of your choice?  The result would be this: You would have $20,000 invested, and the car of your dreams after someone else already paid for the first two years of depreciation.

 

 

Your thoughts on this subject?  Your comments appreciated!

 

Content © Rich Brott, 2011

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