Originally Posted By: Astro14
Originally Posted By: Boomer
There are two habits that define people of high personal wealth according to a survey I read about a year ago.
1. They have very few electronic subscriptions for devices and services (cable tv, hand held gizmos, etc.)
2. They keep vehicles a long time, many for well over ten years. The hit from depreciation is HUGE in three years as is paying sales tax again on the next purchase.
The article went on to point out that most people with a net worth of one million dollars or more live quiet, non-consuming lives and are probably your neighbors.
From a great book called "The Millionaire next Door" by Thomas Stanley and William Danko. Turns out that people who HAVE money aren't the ones who make a show of SPENDING money...among many other surprising insights into the habits of the wealthy.
Millionaires tend to buy domestic cars, pay cash, and drive them forever. They own modest houses. They stay married to the sam eperson their whole lives. They generally own their own businesses. They are more likely to buy Stafford suits at JC Penney and wear Timex watches than any other brands. They save a substantial percentage of their income.
How do you know if you're on track to become a millioniare? Take your age, multiply by your annual income, divide by 10. If your net worth is above that number, you're on track...
I know I've gone OT...but it figures into the question. Buy a new car every 3 years? Yikes! You're not following the path that millionaires take...Granted, that is a cool car, and I was impressed by it at the Richmond auto show...but I would keep. Definitely Keep...
I think you're on to something. I remember seeing an online article a few years back that covered what the 10 richest people in the world own. The third guy down on the list had a 15 year old Mazda B-Series pickup...mind you he was a billionaire. No $60K dually with 10 dead cows on the seats in his driveway. Warren Buffet had a 10 year old Town Car. While a TC is classy enough, after 10 years anyone with the means to own a car can buy one.
I'd be looking forward to not having payments. It gives you a lot of freedom with the vehicle. I can rag the [censored] out of my truck on a daily basis, I don't have to worry about a repo man coming, I don't have to have full coverage on it, etc. Basically, it's nice to have something that's fully yours.
I wouldn't worry too much about the head gaskets on the Subie. Plenty of these things are neglected and driven hard, and they still manage to start everyday. There's no guarantee of the Honda's reliability either. My dad bought a 2004 Civic Hybrid before the car had even docked in America. Always highway driven, always dealer maintained by the book. This car just loves grenading its CVT transmission. Honda replaced the first one under warranty, but now that one is developing a shudder just like the first one did. My dad is on his own when this one goes. His plan is to drive it until the trans goes out completely, then trade it. The Civic is paid for, so I guess he has the same view I do on paid for cars.
