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.
It should never feel or be forced
August makes six figures but has student loan debt, credit card debt, and car debt. Furthermore, they don’t have any savings. But they know they want a new car. They’re bringing in a decent amount of money each month, so they think, “hey, why not treat me to a new car; plus, I’m bored with the one I recently got a few years ago.”
They pull the trigger. Except when they get to the dealership, the numbers aren’t looking too bright. They’re too scared to negotiate, so their friend has to do it for them, which brings the numbers down a little bit, but this new car payment will put a heck of a dent in their budget.
What does this mean for them:
They won’t be able to invest much money in their future.
They won’t be able to pay off their debts quickly.
They won’t be able to create an emergency fund.
This car payment, along with their other expenses and debts, will cost them big time in every area of their finances.
But none of this matters to them because they must make things work to get that new car.
Example 2: Willy Can Finally Buy That Six-Figure Car
Willy has made it into a different income bracket. He earns over a quarter million dollars a year, and rightfully so, he has worked hard to reach these heights.
Previous choices landed his credit in the “poor” pile, and he can only use cash for purchases, which isn’t the worst thing in the world, except for when he went to buy his six-figure car.
Because of his poor credit, he had to put down almost half the car’s worth in cash, which brought his total net worth to zero.
Though he thinks he’s doing alright, he pays the minimum payment on his car each month, meaning a large portion of that payment is going to interest.
Not only is he losing out on potential savings every month, but he is also losing significant money in interest every month.
But he had to make his dream car purchase worth it.
Once you start earning x dollars, you realize that money and things don’t make you happy. They’re convenient and nice, but ultimately they don’t increase your happiness or fulfillment in life.
Which is why I haven’t been in a rush to purchase a new car.
Do I desire one?
Yes, and I’m making the moves now to get one eventually, but it’s a process for me. There is no rush.
I rather people continue making fun of my car than rush to get something.
Plus, I’m particular about my car purchases, and if I maintain my car for an extended x number of years, it needs to have everything I want to make it worth it.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.