I believe in starting with as affordable a car as you can with cash. Then move up in car. If I had to do this again, I would do it that way. Borrowing money to buy a car is simply not worth it.
For us, we did the following to help us control our spending and boost up our savings. We went from saving 10% to 55% in about 10 months.
I am glad you share my views on the topic of debt pay off.
I have generally become very debt averse. I know you can do all sorts of mathematical analysis to prove that borrowing within certain limits has its merits. So with my guiding principle of avoiding debt in all scenarios if possible, I…
It’s a very personal decision and it has worked out very well for us. There is something about carrying a debt that influences my day-to-day decisions. I didn’t want that burden anymore. Hence we decided to pay off. I guess it’s not the case for everyone.