How do people afford...

Robert_Nash

Compound interest is not an illusion. Of course inflation is an issue but that existence of inflation, whatever the level, doesn't invalidate the example.

I would certainly hope that people would save a lot more than just $100/month but the overall point was that it doesn't take starting out with a huge pile of cash to wind up with a huge pile of cash and the earlier you start the better...it also serves to identify the real cost of financing something...the cost of financing a new vehicle; especially what is essentially a toy for most people, is far more than just the sum of the payments.

Financing modifications to a vehicle that will generally make an already rapidly depreciating asset depreciate even faster is like holding up a big red sign begging Murphy to pay you a visit.

The real cost of financing a vehicle gives the slogan "like a rock" a whole new perspective.

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Robert
-My Basset Hound Is Smarter Than Your Honor Student and Barack Obama -