Austin’s best financial advisor and money coach at Capital Budget Strategies, LLC agrees, with one additional suggestion: Live way below your means!
But what does that mean exactly?
Here is an example, a neighbor’s daughter just graduated from an East Coast law school and will start working at a prestigious Congress Avenue law firm (after passing the Texas Bar Exam, of course). Her “gift” to herself was a bright red 2017 BMW Series 2 automobile. List price, before all the options, is $39,450.
When I spoke with her, she said, “I can’t be driving a Honda to work at my firm!” Yikes, guess they don’t teach “financial responsibility” at law school.
Yes, becoming an attorney is a great accomplishment and she may “deserve” a nice car. But can she “afford” one? Big difference. On her first day of work, she will arrive with no savings, massive school loans and a very large – and unnecessary – new car loan!
Imagine if she visited Carmax in South Austin and purchased a 3-year old Toyota Camry for about $12,000. She would have a very dependable automobile and be $27,450 LESS in debt.
If she ever gets laid off because the firm’s big oil company client is cutting back or she gets burned out being a first year associate, she will appreciate the lower car payments!
Plus, she’ll just be parking the car in the building’s parking lot – who is gonna see you there?
Capital Budget Strategies, LLC provides inexpensive, flat-fee services to help you organize your finances. For only $149, we will help you determine your true net worth, analyze your spending habits, create a personal budget, start an emergency fund, help pay off your debts with a Snowball Debt Reduction Plan and assess your current retirement savings.
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