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If you have ever read the book The Millionaire Next Door, one of the reason that Doctors and Dentists typically don't accumulate a large amount of wealth in their lifetime considering the high salary that they have is the fact that they have to keep up with the joneses. If you haven't read the book and are looking at this problem you should read the book. The status job has a high salary for them but it almost is like a tax as well because they are expected to live in a certain neighborhood where houses cost 50,000 more than elsewhere and they are expected to drive a car that cost 20,000 more than the normal car. So if I were you I would read the book and get a normal car.
I think the point he was making is that Mark Z can afford a much nicer car than that. He can afford whatever he wanted. There is no way the he financed the car either.
I'd like to see the stat that says the average car is 12 years old. I see a lot of new cars on the road.
Financing a car for 5 years, and then keeping it for a few years is a good scenario. But I doubt a big percentage does that. Everyone seems to want to trade their cars in a lot to get newer. That cycle makes them a slave to their cars.
100% right on.....not sure where the previous poster was rambling.
If you have ever read the book The Millionaire Next Door, one of the reason that Doctors and Dentists typically don't accumulate a large amount of wealth in their lifetime considering the high salary that they have is the fact that they have to keep up with the joneses. If you haven't read the book and are looking at this problem you should read the book. The status job has a high salary for them but it almost is like a tax as well because they are expected to live in a certain neighborhood where houses cost 50,000 more than elsewhere and they are expected to drive a car that cost 20,000 more than the normal car. So if I were you I would read the book and get a normal car.
Great reading.....Best short book (less than 100 pages I think) that I have ever read.
If you have ever read the book The Millionaire Next Door, one of the reason that Doctors and Dentists typically don't accumulate a large amount of wealth in their lifetime considering the high salary that they have is the fact that they have to keep up with the joneses. If you haven't read the book and are looking at this problem you should read the book. The status job has a high salary for them but it almost is like a tax as well because they are expected to live in a certain neighborhood where houses cost 50,000 more than elsewhere and they are expected to drive a car that cost 20,000 more than the normal car. So if I were you I would read the book and get a normal car.
Quote:
Originally Posted by City Guy997S
Great reading.....Best short book (less than 100 pages I think) that I have ever read.
It was ok. A quick read, but a lot of it to me was 'Duh'. Also they obssessed too much on how many millionaires drove American cars, like that was some magical key to eventual wealth. Actually, it was an example of what the millionaires did wrong. At the time of that book (1980s), American cars were junk. It was a very poor financial decision to buy American cars then. Still is, imo, but not an open and shut case like back then.
If you have ever read the book The Millionaire Next Door, one of the reason that Doctors and Dentists typically don't accumulate a large amount of wealth in their lifetime considering the high salary that they have is the fact that they have to keep up with the joneses. If you haven't read the book and are looking at this problem you should read the book. The status job has a high salary for them but it almost is like a tax as well because they are expected to live in a certain neighborhood where houses cost 50,000 more than elsewhere and they are expected to drive a car that cost 20,000 more than the normal car. So if I were you I would read the book and get a normal car.
Sounds pretty good since they're making $100-200k a year more than your regular college educated Joe.
One of the reasons doctors in particular don't tend to accumulate a ton of wealth relative to their income has to do with $200,000 of student loans, eight years of college, and then 3-7 years of residency making below minimum wage. The typical college grad comes out of formal school and makes more money than a doctor four years earlier and about a tenth of the debt. Sure, 5-6 years when a surgeon finishes up residency, sure. It shifts. On the other hand, he's just spent $200k, four additional years of college, and then worked for about 5 years 80+ hours a week for less than he could have made flipping burgers at McDonalds. That's often when the Porsche comes in. I'd probably want something to show for going through that as well, other than the $2,000/mo+ student loan payment that is.
Buy a car that you can comfortably afford and don't give in to peer pressure. It's just stupid these days.
Times are different now. Back when I was graduating college a lot of cars were JUNK. They weren't nearly as good as what is being made today. I mean for perspective remember when the only people buying Kia's were people that didn't have money and Kia was junk and now they are winning some awards. LOL.
Buy a luxury car when you can comfortably afford it. I'm NOT against people owning and buying luxury cars if they can afford them. I love my Audi as much as the next guy but the difference is I can afford it.
Also, I had the good pleasure to work with many wealthy families over the years. Some billionaires and the most interesting thing is some of these billionaires are the most non-flashy people. They drive relatively modest cars, they were modest clothes (no Armani suits), etc. About the only thing that I noticed that was extremely expensive was the homes they lived in. Everything else you would never know they were billionaires unless you know who they were.
Who cares what your friends say. Even if you can afford the car payments, save it up and take advantage of compound interest. The best reward in life is being able to retire if you wanted to at 40.
If you have ever read the book The Millionaire Next Door, one of the reason that Doctors and Dentists typically don't accumulate a large amount of wealth in their lifetime considering the high salary that they have is the fact that they have to keep up with the joneses. If you haven't read the book and are looking at this problem you should read the book. The status job has a high salary for them but it almost is like a tax as well because they are expected to live in a certain neighborhood where houses cost 50,000 more than elsewhere and they are expected to drive a car that cost 20,000 more than the normal car. So if I were you I would read the book and get a normal car.
Huh? Is that so? When I visit my doctor or dentist, I have no idea (nor do I care) what car he/she drives and what neighborhood he/she lives in.
It was ok. A quick read, but a lot of it to me was 'Duh'. Also they obssessed too much on how many millionaires drove American cars, like that was some magical key to eventual wealth. Actually, it was an example of what the millionaires did wrong. At the time of that book (1980s), American cars were junk. It was a very poor financial decision to buy American cars then. Still is, imo, but not an open and shut case like back then.
Correction: "The Millionaire Next Door" was first published in 1996.
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