Big Ego + Low Income = Financial Disaster
An easy math formula for a Sunday morning.
This infographic does not surprise me at all.
Too many low and middle income families buying brand new pickups to fill the void of their thirsty egos.
Charlie Munger said a man would go broke over ladies, liquor and leverage. Behind all of these is just a sad, insecure dude trying to massage a broken ego with a toy truck.
If you don’t need a truck for work, don’t buy one!
If you have zero or one child, you likely don’t need a full size SUV.
If you have a high income, then proceed as you like. We still need folks to buy new cars! Unless we want the used car market to be unaffordable again!
If you currently spend over 10% of your income on a vehicle, I’d encourage you to cut that in half, plug that $ figure into a compound interest calculator and let the reality sink in for a moment.
Your ego will thank you.
