@millennialindebt
Millennial In DebtLet’s talk about the term “afford” especially in relation to debt and lifestyle creep. When it comes to cars I am a finance girly because I like to pay off the loan early and be done. I’ve always wanted an Audi and I can “afford” one on paper so when I was car shopping in 2020 I was curious to see what it would cost to own one. Even with a 5 figure down payment I’d have to take out a loan for $30,000+ to get the years/ models I wanted. Factoring maintenance… it would cost me a pretty penny just on upkeep alone Similar to buying less house than the bank had approved me for — I decided to make a less expensive decision. This helped me preserve more monthly discretionary income so I could maintain a healthy balance of saving, investing and spending. I was able to pay this car off in 11 months — 4 years early and save myself money on interest. Lifestyle creep would’ve been buying the Audi because I could “afford it” but I chose what I could comfortably afford instead. Does that mean I’ll never buy an Audi? No. It just means for right now that purchase would get in the way of my current financial goals. This post was inspired by @Chloé Daniels | Money Tips ‘s recent post on her vehicle of choice !! . . . . . . . . #m#millennialindebtc#carshopping#p#personalfinancef#financialfreedom#f#financialliteracy#d#debtfreecommunity#d#debtfreejourney#d#debtfreedom#d#debtfreegoals#f#financialindependence
On the profile · Apr 22, 2024