28 Aug '13, 10am

How much do you spend on a new car?

Living below the mean. It’s conventional wisdom, which it works, but i think it’s not so relevant in current generation anymore. You can find many youngster who understand the logic but simply can’t execute it anymore simply because of social proof. More realistically is being moderate and keep increasing your earning power, which also means how much you earn does matter as compare to how much you save, especially living cost in Malaysia increase faster than earning power, you can’t cope for too long maintain the same earning. That uncle who drives a myvi and a row of condos is probably extreme frugal case. Even if he drives a 3 series BMW can also consider as moderate to his earning power.

Full article: http://kclau.com/wealth-management/new-car-cost/

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