On: How poverty changes your mindset

[brokenmachine]

> I wouldn't drop money on a spanking new car even though I can afford to and all my peers drive Audis or whatever, but I feel just OK with my over 100k Civic just because I like not having a loan on my head.

Needing a loan ≠ can afford to. Many people do not understand this simple fact.

[pm90 → brokenmachine]

Really... so you wouldn't take out a mortgage to buy your house?

[OkGoDoIt → pm90]

I’m not entirely sure, maybe I will do that someday, but I’m certainly not comfortable with the idea. And I find it interesting how normal that is and how people don’t seem to think it’s a big deal.

[vageli → OkGoDoIt]

I can afford to buy a car outright, but why would I? Most new cars have terms of zero interest for several years. If I can invest my money elsewhere while taking advantage of a zero-percent loan, why wouldn't I?

[brokenmachine → vageli]

Because even leasing a new car at zero interest will end up more expensive than buying an older car outright.

[brokenmachine → pm90]

I haven't, but would consider it. But I wasn't talking about a house.

You need a place to live. A fancy car as opposed to one you can buy outright? Not so much.