Jim has $16,000 in savings, and he's considering a $15,000 car. He'll likely be driving quite a bit since he has a long commute to his downtown office from his house. In addition, Jim wants to keep a large savings safety net in his bank account. What's the best option for Jim?
Jim should buy a cheaper and commute to work. Buying the $15,000 car will leave him with only $1,000. Sine the commute is long, the car appears necessary for the case. He'd better buy a cheaper car that will do the job. He will both acquired the car and saved a substantial amount o cash for future occasions.
