Jay_Gatsby
Thinks s/he gets paid by the post
- Joined
- Oct 7, 2004
- Messages
- 1,719
Get the new car, but go with a Honda Accord rather than the TSX. Perhaps not the same driving experience (but you're starting a family, so the Autobahn is out), but it's just as safe and of the same quality. A 4-cylinder Accord with leather (EX) will only set you back around $22.5k, which saves you $7.5k over the TSX. Take that money and put it into a 529 for your future kid(s). A 4-cylinder "LX" model will set you back less than $20k, leaving you over $10k. Now we're talking real money. Is buying a TSX really worth that much to you?
Many of us can afford the TSX, BMW, Mercedes, etc... but we're on this board because we're focusing on FIRE. Spending more money on a car than is reasonable is inconsistent with this goal. Wait until you're 40 to buy the TSX. Still plenty of time to enjoy it, and you'll have far more disposable income to afford it and your kid(s). That $10k you saved will be worth around $16.5k if invested to get 5% annual growth.
Many of us can afford the TSX, BMW, Mercedes, etc... but we're on this board because we're focusing on FIRE. Spending more money on a car than is reasonable is inconsistent with this goal. Wait until you're 40 to buy the TSX. Still plenty of time to enjoy it, and you'll have far more disposable income to afford it and your kid(s). That $10k you saved will be worth around $16.5k if invested to get 5% annual growth.