So in 2014 I finished college and landed a temporary job (November) earning a base pay of $53,000 CAD/year. Six months later I landed a full time position (April 2015) with base pay of $78,000 CAD/year.
My 2001 Chrysler Sebring started having some really strange electrical issues (7 years of ownership) and as a young professional with my new fancy pants job I decided I should lease a 2016 Subaru WRX Sport-Tech in July 2015. What a glorious day I thought! I've made it! I deserve to live like a king!
Luckily my co-worker had heard of MMM so around this time I started to delve into this FIRE world.
It took me 388 days before coming to the conclusion I need to change my spending habits, 61 days to buy a used Honda Fit and a final 29 days to get rid of my lease. Subaru luckily took the car back at its remaining equity.
Let's look at the numbers:Lease - WRX
Cost: $42,000 @ 3.9% for 36 months
Monthly payment: $580
Insurance: $190
Gas: $200
Winter tires (36 mths): $1450
GPS Command Start: $1200 (An absolute waste, I used it only a handful of times and it wasted so much gas. Manual car)
Maintenance (2 years; expired warranty): $500/year
Total projected ownership (3 years): $36,603
Total projected ownership (5 years): $73,564**
**Assuming buyout: $24,000 @ 3.9% for 24 mths
2013 - Honda Fit
Cost: $12,000 @ 5.1% for 24 months
Monthly payment: $528
Insurance: $140
Gas: $100
Winter tires (36 mths): $800
Maintenance: $500/year
Total projected ownership (3 years): $22,834
Total projected ownership (5 years): $31,172
That's some nice savings and I'm no longer stressed about my car ownership! I spent an average $1000/mth to own the 2016 WRX over the course of 16 months. $16,000 for essentially a glorified rental. Ouch.
If you're interested in following my progress check out my journal:
http://forum.mrmoneymustache.com/journals/from-luxury-addict-to-frugal-warrior/I'm looking forward to 2017. I still make many mistakes and I have many habits I need to break so this will be an interesting chapter in my life.