Orman wasn't spending the money for the right reasons, and the $800 monthly payments ended up being more than she could afford.
"That's where I came up with this statement, you know: Don't spend money you don't have to impress people you don't even like, because the truth of the matter is later I didn't even like this person and I'm spending all of this money," she says.
While lease payments are typically cheaper per month, they still add up over time. Once you pay off your auto loan, you eliminate a fixed monthly cost and won't have to worry about a car payment until you buy again. If you're still leasing, that's another check you continue to write every month.
Like going out to eat all the time, small individual payments can become huge annual costs.
If you're debating which option is best for you, take the time to deliberate and weigh the pros and cons.
And before signing up for an expensive lease, consider Orman's advice and ask yourself, "When do you buy what you can afford versus what you need, when what you need is less than what you can afford?"
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