Comment by solyin
1 day ago
Because if you desperately need cash, you can trade in the $80,000 luxury suv for a $20,000 subcompact, and use that cash to pay rent and for food. It's a depreciating asset and sometimes a money sink, sure, but if you live somewhere you need a car anyway, some people choose the more expensive ones.
That's... Financially irresponsible. You build your cushion in non-depreciating assets. If you are approaching situation where you would desperately need cash, you prepare for in some way different from buying luxurious suvs.
There are some situations that can wipe your savings - even large ones - really quickly (e.g. cancer).
Wouldn't healthcare cover a large portion of these kinds of expenses? At least they do in quite a few parts of the world.
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