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Old Mechanic:
I agree completely!
I was raised by my ELDER family members to NEVER carry large amounts of debt....then my 20's and Late 20th Early 21st Century Culture happened........
You know, the part where everyone thought that manufacturing was gone from the United States forever and that we just couldn't live like our predesessors.... relying on a good company with a pension......Etc, Etc, Etc.. (If that's what something costs, we'll just have to borrow to get one).
Well, here we are. Back to square ONE.
In fact, I was reading an article a while back about kids between Birth and 12 years old or so. It illustrated how young children are being raised during hard times and a depressed economy and how it could result in a "Depression Era" mentality when they grow up. Meaning that they might actually grow up with some concept of living within their means and being frugal?!
The same article described the 16-30 year olds as the most liberal generation in terms of financing, instant gratification and low concept of financial responsibility!
I for one have decided to work towards zero debt and completely free and clear assets. That includes "Cars" (which are rarely actual assets).
So, yes...sticking to a budget and attempting to reduce potential maintenance was a HUGE factor in what we purchased.
This vehicle (the cube) will likely be a "go between". I have no intention of keeping it for very long. once the VW is sold...it should be paid off very quickly... at which time it could be sold or traded as a "Free and Clear" vehicle. Whatever amount it's worth can be "transferred" into the next purchase (the budget for which will likely be higher than $14k)... with low interest rates, we would again finance the difference.
Having said that, fuel economy will likely be a hot topic around my house for a long time.... even IF and WHEN gas goes back down to $2.99 a gallon. Just like the thermostat is set at 60 degrees May 1st, Water, Electricity and other utilities have been trimmed and we have continued the "not eating out much" trend that was necessary over the last 5 years....
Sure the economy is improving and for all intents and purposes everything is on it's way back to normal. My family learned it's lesson and has decided to modify our ways and resist "Living high on the hog" as things improve!
Not surprisingly, in a short amount of time, this has resulted in more savings and more "rewards".
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