New Cars
Buying a car could set you back tens of thousands of dollars if you’re not careful. But most people choose to buy new anyway. That’s because a common misconception is that you’ll spend more in the long run if you purchase a used vehicle- why else would they be so cheap?
Well, they’re cheap due to depreciation. After 12 months, a car’s value goes down by 20%. You could save even 30-40% if you go for a two-year-old car instead. But if you’re having a hard time deciding, just think about it. Would you stop driving your new car after two years? No, so why wouldn’t you drive another one?
For the most part, people like to treat themselves with new vehicles but what they don’t realise is how much they could save for their retirement if they’re a little more frugal in their approach.
On that note, you should also drive your car for as long as possible, cutting costs even further. If you regularly pay $400 per month and can avoid those costs for two more years, you’ll be looking at an added $9,600 towards your savings.
