| but my parents taught me about fiscal responsibility. It all starts with not over-extending (spending) yourself. Next.. save and invest. Keep some liquid and invest the rest for the long-term. If you're not sure how, read and/or seek the assistance of a professional. It's never too early, and you never make too little. It's tough to do the right thing a lot of the time and go without the things you really want.. in favor of setting yourself (and your family) up for the future. One example of what NOT to do would be to rush right out and buy an old sports car as soon as you have some decent income. I bought a $4,000 car my first year of college. A used 1989 Honda Accord with 75,000 miles. I paid it off in 1.5 years. I sold it about 6 months ago for $1,350 with 208,000 miles.. 13 YEARS later. During that time I bought another car.. A 1998 Nissan Maxima with 70,000 miles in late 2001. I paid the Maxima off in late 2003. I am still driving that daily, now that my wife no longer uses it, with almost 260,000 miles. I bought my Z back in 2004 for $6,800 cash. 3 cars, no car payment. When I sold my '89 Accord last year and moved back into the Maxima that my wife had been driving since 2004, I bought her a 2005 fully loaded Honda Accord with 40,000 miles for just over $12,000 cash. Why cash for the cars? When you have saved aggressively and made responsible decisions over a period of time, you will likely arrive at a place where you have the liquid dollars available and can avoid the interest incurred when financing something that depreciates as quickly as an automobile.
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