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.
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.
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.
Frugality breeds frugality. Remember to consider all the associated costs when you’re dropping down the initial cash for the purchase!
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
Credit to yourmechanic.com for the data in this list!