The Credit Crunch

We turned in our minivan yesterday. It was a lease, and the lease was up yesterday. For all my years of griping about it, it was a decent vehicle and served us well.
So naturally, we've spent the last week looking at family-mobiles and examining our options. Yesterday I re-read this article I've kept from Relevant Magazine that I thought was interesting. Here's an excerpt:

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From Straight Talk About Debt by Dave Ramsey:

"Taking on a car payment is one of the dumbest things people do to destroy their chances of building wealth. The car payment is most folks' largest payment except for their home mortgage, so it steals more money from their income than virtually anything else. USA Today notes that the average monthly car payment is $464 over 64 months. Most people get a car payment and keep it through their lives. As soon as a car is paid off, they get another payment because they "need" a new car. I you keep a $464 car payment throughout your life - which is "normal"-you miss the opportunity to save that money. If you invested $464 per month from age 25 to age 65, a normal working lifetime, in the average mutual fund averaging 12 percent (the 70-year stock market average), you would have $5,458,854.45 at age 65. Hope you like that car!

If you put $464 per month in a cookie jar for just 10 months, you have more than $4000 to pay cash for a car. I am not suggesting you drive a $4000 car your whole life, but that is how you start without debt. then you can save the same amount again and trade up to and $8,000 car 10 months later and up to a $12,000 car 10 months after that. In just 30 months, or two and a half years, you can drive a paid-for $12,000 car, never having made a payment, and never have to make payments again.

Taking on car payments because everyone else does it does not make it smart. Will your broke relatives and friends make fun of your junk car while you do this?? Sure they will, but that's a very good sign you are on the right track. Having been a millionaire and gone broke, I dug my way out by making a decision about looking good versus being good. Looking good is when your broke friends are impressed by what you drive, and being good is having more money than they have."
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While I don't necessarily agree with his tone, implying that acquiring wealth is the greatest goal to work towards, I DO like the idea of working towards living debt-free. It's taken me months to get over the idea of having a car with less than 20,000 miles on it. I've had this phobia or "thing" about older cars or cars with higher mileage - fretting about their dependability, expecting them to fall apart on the road as I drive them, etc. etc.
Admittedly, I'm a very short-sighted person. Yes, we'd be in debt, but we'd have a GOOD car, a RELIABLE car, and (said to myself) a PRETTY car. Yeah, guess I'm shallow like that. So here we are...looking at cars - and for the first time, I'm thinking: Maybe it WOULD be worth it to drive a crappy car for a couple of years so that we can save $400 a month.

And I'm pleasantly surprised to find that I'm okay with that.

So if you see me in town with my kids in tow in a crappy old minivan or SUV - just wave and smile and laugh if you feel like it. It's taken me a long time to get to the point that I don't care. :)