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Weekend reading: Avoid a car crash

Some good reads for the weekend.

I read two great articles from Allan Roth this week. One is in the lists below, while the second (which is actually a year old) I am calling out as my post of the week.

In Skimp or Splurge – Millionaire’s Car [1], Roth highlights the awesome wealth-destroying capabilities of an expensive automobile:

On average, each of the two Lexus SUVs cost $15,060 annually, while the Ford clocks in at $10,000 less.  This leaves the [Ford-owning] Thriftys with $20,000 annually to invest.

If the investments return seven percent annually, the Thriftys will have built up a $1.9 million portfolio after 30 years. Of course to get that rate, you’ve got to keep expenses and emotions out of the equation and be a rational investor.

I’ve mentioned before the big wins – from a frugality standpoint – of avoiding the three Cs: Cars, cigarettes, and children.

It’s especially true in your 20s. I once worked with a young colleague who ran a top-end car and smoked like a Cold War spy. He was always in debt. Luckily he smelt like a chimney and preferred fine mechanical bodywork to a fertile chassis, so he avoided the children that his lifestyle would have sent to the poorhouse.

But perhaps I shouldn’t preach: This post is slightly late because I’ve been assembling one of these [2] in my back garden. Even worse, I bought it in Waitrose on a whim, and it cost me £50 more than it will cost you if you follow that link.

Still, it’s summer and the time for spontaneity. Perhaps I’ll post some pictures next week if the weather holds!

From the blogs

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