Quote:
Originally Posted by Transfer
Buying a car is a terrible waste of money but we all know that and it gives us pleasure so we do it anyway.
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Transfer, don't let anyone tell you a car is a waste of money. That perspective is held by people who don't have any interest in cars and view them solely as transportation vehicles. Unfortunately that's most people, and so that view gets ingrained in mainstream thinking.
There's tremendous value for money for people who love cars, and that's what we are paying for. Waste of money would indicate you're throwing your money away for nothing in return. But I place a lot of value on the happiness I get in return.
That being said, certain things in life do have to take priority. I place cars high on my list of priorities, but there are certain things (i.e. my family's well-being, my financial situation, etc) that do take higher priority. If you haven't done much investing by age 32, you need to start immediately or risk having insufficient funds in retirement (compound returns are powerful). Getting your finances in order definitely takes priority over an expensive car, and I say this as a big car enthusiast.
Someone had mentioned that investing in the stock market provides greater returns long term. Although that may be true, the thought process is if you're paying monthly for rent, why not pay that instead towards your own place and build equity?
ShiftingG82 I'm all for purchasing your own place. Money is super cheap to borrow right now, so it's a good time to buy.... assuming you're able to find a suitable place (the market is still hot). If you have to downgrade from a G82 to a G22 in the meantime, that may not be a bad tradeoff to set yourself up, and it gives you something to work towards.