Buying Too Nice A Car

QUESTION: Tim has been saving up the cash to buy a car, but doesn’t know how much to spend. Dave thinks it’s all right to buy something nicer … but how much?

ANSWER: Rule 1 is pay cash, and Rule 2 is that everything with a motor in it, combined, should not equal more than half your annual income. The biggest thing you’re having is that you’ve worked so hard and sacrificed so deeply to get where you are, you are having trouble turning loose with the money. Buy a $9,000 car. It’s a big emotional leap from $1,000 to $9,000, but you are definitely not overspending. You are in really good shape. Once you’ve bought your car, move your wife up in car.

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