I recently helped my mother purchase a 2015 SUV from a dealership. It was not a pleasant experience. Those of you that have purchased from a dealership know how long the process takes. Within 20 minutes of walking into the dealership, we were ready to pay all cash for the vehicle. We had done our research in advance, the test drive went well, and we were buying a reliable make and model.
Have you read our post about the Importance of Car-Buying Decisions? If you haven’t, you should.
The average new car purchase price in America today is more than $36,000. That is an astonishing number, considering the financial situation of the average American today.
Some blog posts are more important than others. If I could shout through the screen to you, I would say: “This post is really important!” It’s not important in the sense that “Mike and Austin think this is important”; it’s important because the math shows us it’s crucial.
The second-largest annual expenditure for Americans is transportation (second to housing). If it’s the second-largest annual expenditure, it’s appropriate to say this category of spending should be a big deal in the world of financial planning.
What is Wealth? Appreciable assets or conspicuous consumption?
From The Millionaire Next Door:
“Ask the average American to define the term wealthy. Wealthy to them refers to people who have an abundance of material possessions.
We define wealthy differently. We do not define wealthy, affluent, or rich in terms of material possessions. Many people who display a high-consumption lifestyle have little or no investments, appreciable assets, income-producing assets, or common stocks.. Conversely, those people whom we define as being wealthy get much more pleasure from owning substantial amounts of appreciable assets than from displaying a high-consumption lifestyle” (pp. 11-12).