If the average person doesn’t have enough money, they’re going to spend more time on their car and money is going to do the same thing. We’ve heard that at least some people with higher incomes can afford to hire a car more often. This is a great time to get a car that’s far more practical, cheaper, and cleaner.
I know it sounds ridiculous but the car industry is really the best place to shop for a new car. If you are spending a lot on gas, and you feel like the car isnt quite as fast or as comfortable as you thought, maybe you should shop for a car you could get for a lower price.
The truth is that the car industry is very lucrative. The cars that you buy are the ones you will keep for long. Buying secondhand cars is almost as profitable as buying new ones because you can get a new car for cheaper to boot. Even if you do spend a lot of money, and you feel like the car isnt quite as fast or as comfortable as you thought, maybe you should shop for a car you could get for a lower price.
I can’t overstate how big of an effect this sort of thing can have on a person’s budget. Sometimes I talk to people who have spent upwards of thousands of dollars on cars that they are stuck with because the car dealer doesn’t offer them something lower cost, and they are afraid to go down to the lot and look for a secondhand car. They think they can get a better deal somewhere else, so they end up buying a car they can’t afford.
This is a little like the story of the shopper who walked into a store and asked for a cheap pair of shoes. The salesperson told her they would cost 1.5 times as much to replace. It’s like that shopper was willing to pay the price of buying a pair of shoes that cost $20,000.
The same is true in real life. That is something we see all too often. The first thing we hear when someone takes a look at their budget is, “Wow, I can’t afford to buy that now!” We think, “What a waste of money!” But in reality, we are all the better off because we can.
This is the thing that has me stumped. Our budget is a reflection of our spending habits. For example, we have a long standing habit of buying more expensive things. We are also willing to pay a higher price for a cheaper item.
We are all the better off in this sense. But why does this happen? Why does our spending pattern reflect a specific budget? We think, Why should our budget be lower? Because when you buy less expensive stuff, you don’t have to pay the higher price for it and you get it cheaper too.
So it seems that our budget is an indicator of our purchasing habits. But, isn’t it possible that our budget is a reflection of our spending habits at a lower price? I’ve heard some folks say that it is. The point is that our budget is influenced by our spending habits.