BG, you have lots of tips there for living frugally. Be careful though–I have noticed that the giving of frugality tips is positively correlated with one’s age.
Incidentally, I have lots of tips.
I’ll respond to one of your subjects–the buying of cars–identified by the author of ERE as one of the budget busters to beware of.
You said don’t buy new because the vehicle depreciate $3k the day you drive it off the lot. I think it is more accurate to use a declining balance rule, in which it falls in market value by about 20% per year. This could be 15% for older cars because they last so long now, to the dismay of the automakers. Yes, Pigg owners of snazzy $30k BMW’s, that soul-mate in your garage could cost you $500 this month. But the cost is hidden from view. Imagine peeling off ten fifty-dollar bills on the first of each month and you get a better picture. Got a new BMW? Make that 20 fifties please.
As to always buying old, I used to have that rule, but now think the better one is….Buy new and drive it into the ground. My crossover Pacifica has $183,000 and should easily make it to the quarter million mark.
The trouble with buying used is transaction costs of at least 10%. There is the biggie of sales tax, but also the huge difference between wholesale and retail if you buy at a dealer. Yes, you can take the time and trouble to buy from an owner, but most car owners, like delusional home sellers, are in love with their overpriced car. I don’t have the patience to educate them. Plus, you don’t really know what you are going to get. Just buy new and take good care of it!
