Transportation 1

You have heard the saying "the car is nickel and diming me to death".  This gives the impression that you should have bought a new car many months ago.  That you are a fool for keeping that old rust bucket going.  That your job is in danger due to your unreliable car.  You must act and buy a new car.  It is the only responsible thing to do.

It is all a lie.  You are talking yourself into a new car, because you WANT a new car.  Be honest.
Besides food and eating out, the transportation budget needs to become firmly under your control.  A new car is a luxury item, not a need, be honest.

90 percent of the time the cost of a new car payment is much more than repair.  Secondly, you normally have options in the absence of a car. (Bus, carpool, coworkers).  Conventional wisdom is when a repair cost more than the car is worth it is time to buy a car.  Some like Clark Howard use 50 percent for a higher level of reliability.

To take control of your finances now requires you to milk every last mile out of your car and for it to leave you stranded a few times.  Get familiar with the bus routes as a backup.  Honestly a car should last at least 10-15 years.  To pay off your debt required you to understand and repair old cars.

When you understand transportation you are ready to graduate to advanced frugal.

theLateFrugal

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