Car

A few years ago, I was talking to an ex-colleague about cars. She had just changed car, and I think she bought a Mercedes. I think the price was in the region of 150k. She said that a Jap car is about 120k then, and for a bit more (which the family can well afford), she can get a Mercedes!

I did not say much more then, but I was thinking that with that mindset, she is probably prepared to work till retirement age.

A car to me is just a transport tool, from A to B. 

A difference of $30k, if invested over 20 yrs, is about $116k (assuming 7% growth)! 30k can also mean 201k if the growth is 10% annually for 20 years.

All these will add up to retirement!

Then again, if driving a Mercedes bring value to you (e.g. brings a smile to your face everyday) , go for it! It just doesn't bring value to me.

-H