I've seen you post this a few times, and I'm not buying it. Assuming you buy your first new car out of college at age 22 and carry a $500 note the rest of your life (let's say 85), that's $378,000 per person. Do that for you and your wife, and it's still less than $800,000. Perks are you'll pay less maintenance due to lower mileage vehicles and likely have higher fuel mileage due to better tech. So where do you keep getting this "millions" from?

ETA: Counting investment possibilities I suppose. Kind of unfair to assume that your investment will always make you money though.

This post was edited on 10/21/13 at 1:43 pm

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Posted by Ace Midnight

Between sanity and madness

Member since Dec 2006

89780 posts

Posted on 10/21/13 at 2:04 pm to LNCHBOX

quote:
Assuming you buy your first new car out of college at age 22 and carry a $500 note the rest of your life (let's say 85), that's $378,000 per person.

Principal over 63 years. You're assuming 0% interest?

Even at 3% average rate of return, that's well over $1 million.

5% is over $2 1/2 million

8% is over $11 million

10% is $31 million

quote:
Kind of unfair to assume that your investment will always make you money though.

Kind of unfair to assume that your money will get stuffed in a mattress somewhere.

What am I missing?

ETA: Wealth is a mindset. The difference between upper middle class and wealthy is that the upper middle class family has nicer cars, houses, vacations, still live paycheck to paycheck, working for money to pay for their stuff.

Wealthy people work to increase their stash of money, so they continually have more and more of their money working for them.

Ergo, a wealthy person can have a lower income and less things than an upper middle class professional who still has to bust his hump to pay his bills.

This post was edited on 10/21/13 at 2:12 pm

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