This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Why I Plan On Driving My Car Into The Ground

But then again, when you throw money at a fancy car, you're still getting a fancy car.

As your wealth grows, I suppose  your idea of value often changes. “Comfortable” isn't what it used to be, and you experience lifestyle inflation. This is where my friend and I came to a standstill - where do you draw the line? At 20, spending a couple of hundred bucks on a phone seemed like a huge waste of money, but nowadays, it's just part of my budget. “You could just live bare bones, but why else do you have money?” my friend argued.

But then  again, a $100,000+ Porsche Carrera is pretty far from bare bones. That's an extreme example, but I see a lot of them around town, and I often wonder about the mind-set that went into spending  that much on a vehicle.

Getting off my frugal high horse

Having control over my finances makes me happier than any luxury vehicle could. But not everyone has as much  fun with frugality. I also don't get than new car  itch. But plenty of people do, and I itch for other things that some people might see as a waste.

I'm about to take a pretty pricey vacation. I've been saving up for it, and I'm relishing it, the way many luxury car lovers would relish  their purchase. I forget there's an important difference between me and people who buy fancy cars: they like fancy cars.

There are plenty of practical reasons for not buying a luxury car. But we all have the urge to  splurge on different things.

I'll end with a  question a GRS reader once posed. She wondered whether she should buy a new, luxury car. She could afford it, but she didn't  need it.

This comment was singled out as a favorite:

“If you can really afford it - you're paying cash, you're already putting enough money into your 401(k) to get the full employer match, you're putting extra money into an IRA, you've got three (or six) months extra cash saved up, you don't have any looming debt - then I think you should go for it.  That's what money's for: buying things. [...]“

I would agree with the above comment. When you're financially free and fully prepared for your financial future, money is for buying things.

4 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,779.24 +60.24 0.34%
S&P 500 2,061.18 +8.43 0.41%
NASDAQ 4,711.6790 +9.8120 0.21%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs