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Where you live and what you drive are likely the two biggest decisions you’ll make regarding the impact they have on your finances. And frugality in these areas has a doubly effective impact. Cheaper stuff is generally cheaper to maintain.β
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A few years ago I lived in this tiny one bedroom apartment. Maybe 500 square feet max. I remember my gas and electric bill was like $15/month. It was great. Now I live in this two bedroom castle of a condo topping out over 1400 square feet! And my gas and electric bill is like $200/month. The difference isn’t ONE major thing. It’s just death by 1,000 cuts. I have wifi switches everywhere that constantly draw power. A big fancy fridge. Two TVs. A central furnace. A gas fireplace. In unit laundry. A dishwasher. Two garage doors. Charging tons of stuff all the time. It adds up.β
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The same is true for cars. That fancy BMW? Brace for impact when you need to take it in for service. A headlight out on your Toyota might be a $10 trip to O’Reilly. But your BMW certified is gonna want hundreds to fix it.β
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Frugality breeds frugality. Remember to consider all the associated costs when you’re dropping down the initial cash for the purchase!β
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As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.β
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-Jeremyβ
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Credit to yourmechanic.com for the data in this list!β
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