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Two ways to save a lot of money by doing nothing will change your life and retirement.
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First, no longer trade in old cars for new ones. Many people change trains many times in their lives. Some people buy a new car every one or two years, maybe the same model and color. This habit is too wasteful.
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Let’s suppose a slightly absurd transaction. Suppose Bob drives his blue car for a year (choose your favorite color and model). Bob likes the car but wants to change it for red. So Bob found a car dealer and exchanged a blue car for a red car (if the dealer had a red used car, it would be the same as Bob’s blue car except for its color).
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Of course, in theory, the price of the two cars is similar, and Bob can exchange them for free. But this is not the case. The car dealer will give Bob some kind of financial guarantee, take him to a high-end place to trade, and send him a cup of free coffee, maybe a hot dog. Bob may or may not have a problem with the old car he sold to the dealer, perhaps because he did not know there was a problem with his old car. For one reason or another, Bob’s car price is 20% lower than his car price.
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In addition, Bob had to pay the registration fee, the difference sales tax, and any other expenses that the dealer and the state government could think of to make him pay when he pulled out his checkbook. When Bob left, he drove a car with a price similar to that of the previous car, but lost 20% to 25% of its value in the transaction with the dealer (even if Bob sold his car in the newspaper, Craigslist and eBay, or just sold it in the corner parking lot, the situation was not much better).
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Of course, Bob probably never did this deal – he just painted the car. However, the above hypothetical transactions highlight a phenomenon. Car deals are expensive. Reduce the number of car transactions and your wallet will swell. When buying a car, plan to drive for at least seven years, preferably more than ten years.
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Since it will cost about $4000 to buy a new car, you can save $60000 by reducing the number of car changes from 25 to 10 in your life – nothing.
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Another situation where you can save a lot of money by doing nothing is that you don’t want to trade the old house for the new one. Some people keep moving in the city, hoping to find the perfect house, perfect community and perfect school. The cost of each house transaction accounts for about 10% of the house value. Today, it is almost $20000. If you change houses twice instead of ten times in your life, you can easily save 160000 dollars – you can do nothing.