I will try my hardest to never buy depreciating assets that will require paying interest. I will try hard to pay cash for cars and make sure they are not brand new. I was thinking again, and to think about the money people spend on cars is not worth the long term investment. I know that it is not the only depreciating asset out there, but it is an easy example to get my point across. I know people who have bought brand new cars for 20k and they pay 5% interest for five years. This is probably really not that surprising to many of you. I think to some people it is the norm, but habits must change in consumer spending. They will be making a car payment with interest and the car is going down in value. That person will never get the money they spent on the car back and all the interest they pay, they will be losing even more money.
Do you have thoughts on depreciating assets?