Should I Invest in a Big Car on My RM4000-RM5000 Salary?
So, you’re earning between RM4000 and RM5000 a month and you’re thinking about buying a big, shiny car. Tempting, right? But let's pump the brakes and consider a few things before you make that purchase.
First, think about the cost beyond the sticker price. A big car often means higher monthly payments, more expensive insurance, and greater fuel costs. And with the government currently reducing petrol subsidies, these additional expenses can quickly eat into your budget, leaving you with less money for savings, investments, and daily living expenses.
Next, consider the depreciation and the opportunity cost. Cars lose value over time, especially new ones. That shiny new big car will be worth significantly less in a few years. Instead of gaining value, your investment is steadily losing it. The money you’d spend on that big car could be invested in other areas that provide returns, such as education, starting a small business, or even investing in stocks. These options could help grow your wealth rather than drain it in the long run.
Lastly, there’s the financial security aspect. If you stretch your budget to afford a big car, you might find yourself unprepared for unexpected expenses or emergencies. Living within your means ensures you have a cushion for life's surprises, like medical emergencies or sudden job loss. In short, while a big car might seem like a status symbol or a dream come true, it’s more financially prudent to opt for a more affordable vehicle that doesn’t strain your budget. This decision will help you maintain financial stability and work towards longer-term financial goals.
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