This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Call me crazy, but I call it financial discipline
I started earning six figures shortly after graduating college, but I have never bought a new car. I plan on it, but it hasn’t been a priority.
I’m actually forcing myself to finally go to a dealership to learn more about the car I’m interested in and to strengthen the manifestation process for when I’m ready to pull the trigger.
But more people simply go to the dealership and make the purchase without considering the impact on their financial goals, portfolio, and situation.
Before I Bought My Next Car, I Set The Following Stipulations
Call me crazy, but I call it financial self-discipline.
The following stipulations HAD to be met at all costs before I bought my next car:
1. Be able to purchase my next car while maintaining a positive net worth.
Never go into debt for a depreciating asset. That’s my motto, and I’m sticking to it.
Before the next car purchase, you should ensure you do not compromise your financial net worth.
Your net worth might decrease slightly, but it should not go into the negative.
Keep your net worth green.
2. Be without a car note for at least five years after paying off the note.
I chose this one because many people buy a new car without paying off their current car.
It’s as if we’re rushing to get to the next car before thoroughly enjoying and appreciating the one we have.
You don’t need a new car every five years. Of course, you can buy a new car whenever you desire, but you should never do so at the expense of your wallet.
If the purchase hurts, it’s not worth it.
3. Keep my car for at least ten years without purchasing another.
This aligns with number two, but I told myself I’m keeping my car for a minimum of a decade before getting my next one.
I’ve only ever bought one car, and I still got it.
4. Pay off my car in three years instead of six.
As soon as I received my first paycheck from my first job after graduation, I paid off my car.
But I did most of the work before I got my first job. Though I was not working full-time, I knew I did not want to wait six years to pay off my first car. So, I paid it off in half the time.
Ever since then, I’ve never had a car note.
5. Be able to purchase my next car with cash.
When the new car comes into the picture, it’s only coming if I have the cash to cover the expense.
Does this mean I’ll put all the cash down? Maybe. Maybe not.
But at least I will know that if I needed to, I could cover the car with cash.
The most crucial piece to buying a new car is not to go into debt for the purchase.
6. Reach 200k mileage.
My partner used to make fun of me because my car had hundreds of thousands of miles on it, but what’s to make fun of if my financial situation is healthy, my car still runs, and I like my car?
The Stipulations Kept Growing
As I crossed off and completed my list, I kept adding more.
So this is not my most recent list; I’ve added a few more stipulations that are goal related.
Why do I do this? Because it is more important for me to think through the rapidly depreciating car purchase from every angle.
Before you throw away thousands of dollars, you should always ensure it makes sense.
The more time you think about it, the more wealth you can build in the meantime, and the more prudent your decision will ultimately be.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.