Before my senior year of college, I was ready to buy my own car. I was twenty years old and tired not only of having to borrow the van from my parents, but also of having to share it with my younger brother. Being somewhat arrogant and trying to impress my friends, I thought buying a new car wouldn't be that difficult. At the same time, as an accounting student, I knew I would have to check my finances to determine what I could afford.

A $17,000 car would require about a $2,000 down payment and monthly payments of approximately $300. I had saved enough money to buy a new car, and the only problem was that I would have payments until my senior year of college, and my bank account would be almost empty by the end of the year. I would need a job as soon as I graduated to continue the payments. Was it a possible situation? Yes. Was it a financially smart decision? No. After asking my parents for advice and praying about the matter, I decided to look for a cheaper car and save everything I could.

At that time, a lady from church was selling a 1989 Honda CRX with 260,000 miles and a bumper sticker that read “I Love Bach” for $300. At first, I thought I would never drive a car like that during my senior year of college and in the following years when I started my career in the business world. Eventually, the price and the economic value of owning a vehicle that got over 40 miles per gallon spoke louder than my pride. I ended up keeping the car for three years before buying the new car I wanted. By overcoming my pride and making the right financial decision, I saved over $12,000 in payments. I managed to save enough money to not only buy a new car but soon after, buy a house. That decision taught me a great lesson about financial management; you need to spend money on what is necessary, but you need to be careful not to spend money on extra things just to keep up with others. This decision helped me become financially secure and successful in the first three years of my professional life.

Jason and his wife live in San Bernardino, CA where he works as an auditor.

Photo Credit: Freepik

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