buying car for status lift is a big no no in my books
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buying car for status lift is a big no no in my books
If you want to buy something badly enough, you'll always be able to find a justification for it. Problem is, buying depreciating items using debt debt is a slippery slope. You start with owing some money on your credit card from shopping and paying it off when it's due. Then you think 'it's only a few dollars interest' and start living beyond your means. Then you start buying things like furniture, car, etc.
No one item will kill you financially. Even buying a car is fine as long as you then concentrate on paying it off and don't take on any more debts. It's the cumulation of all the items and the mindset that it trains you into (i.e. thinking that you're only paying a few dollars in interest and thinking only short term). It's the mindset that drives the actions, so the key is to change the mindset first.
Alex
HI there Simon
you may recall this recent thread and my frustration with the eldest daughter when talking about debt.
My husband recently was at a garage sale in Canberra and picked up for $1 a copy of the Richest Man in Babylon.
I managed to get my eldest daughter to sit through the second chapter of that book which discusses how Arkad - the richest man in Babylon - started his wealth creation. The important point being made was to pay yourself first - preferably 10% of your earnings - and use that 10% to invest to raise an income stream.
The penny finally dropped for my daughter and she came out and gave me just over 10% of her last pay packet to put into her bank account to start saving with a view to buying a parcel of shares.
It may be that trip to the garage sale will be the best investment my husband ever made if it means my daughter ends up avoiding the debt trap.
thanks
I often wonder why if property investing is so great why isn't everybody involved? I guess a few points may be:
1. People are simple not aware of the strategies / benefits. I wasn't.
2. People are busy in their life (work long hours, kids, etc)
3. People don't financially plan for the future.
4. People have a reasonable salary and live for today.
5. People are easily able to obtain loans for items they desire now (bad debt). So why plan for delayed gratification when instant gratification is so readily available.
There maybe many other reasons that I haven't listed.
Cheers,
Curious Investo!
OK . Going to sell the 2 new cars and go back to old bombs like I had in late 70.s.
But hey, the multiple properties I have bought by owning those old bombs have increased through 3 booms
So maybe it is time to enjoy some items
Gee Cee
REALLLLLY old Fart
The float price was actually $2.45.I think the float price was $2.15.
Gee took me a while to pick up on this article Simon, well done, wish i'd read it 20 years ago.
I'll send it to most of my friends and family, though it probably won't be well received, oh well
Seem's a lot of us with a few properties have a thing for the older car's, some older than others.
1980 Chrysler Valiant Wagon on LPG, increadibly reliable, economical, and solid.
Had her for 4 years now and never regret the $1500 spend.
One day i'll lash out and get a Flash Car like the yellow Charger, but I reckon Redbook has the prices wrong, more like $14k for a good one.
http://www.redbookasiapacific.com/au/vehicle/prices.php?key=CHRY76BE
BB
OK . Going to sell the 2 new cars and go back to old bombs like I had in late 70.s.
But hey, the multiple properties I have bought by owning those old bombs have increased through 3 booms
So maybe it is time to enjoy some items
Gee Cee
REALLLLLY old Fart