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Originally Posted by lemonspeakers
Well, lets say I keep my current car and make pretend payments each month for $400 into a car savings account for the future. When I finally have enough to buy a brand new 20K car, I don't think I'll want to put it all down immediately, do I?
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You have to answer that question for yourself. For me, if that is the reason I have been putting the money in savings, yes, I would write the check and be done with it. It's how I'm wired.
Quote:
Originally Posted by lemonspeakers
Let's say I was able to get a super-duper low interest rate at 0.95% for 3 years. What are better ways of stretching that saved up money for the next three years rather than using it all immediately on that car?
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It depends on how you look at "having" money. From a pure net worth prospective, you don't "have" the money if you owe it to the bank. To me, it's the same logic as "you have to have a mortgage so you have a tax deduction". I'd rather give $25 to Uncle Sam than give $100 to Bank Of America to avoid giving Uncle Sam the $25. I'll keep the $75 and do something with it.
I know I'm wired differently than most Americans when it comes to my view on this, and I'm OK with it. Finance is as much a personal decision as it is math. You have to go with what works for you.