Today I’d like you to start thinking differently about your purchases.  In an attempt to accomplish this feat, I’ve decided to take one very simple scenario that typically occurs in most people’s lives and showcase how dramatically this can impact you in the future.

The scenario we’re going to explore today is the simple purchase of a vehicle.  Bob and Jennifer are both 30 years of age and they’ve both decided to purchase a vehicle.  Bob desires a slightly more luxurious vehicle and purchases a new one every four years, while Jennifer is happy with a more modest vehicle and holding it for a few years longer.  If this trend continues until they are both 60 years old, what will the end result be if Jennifer simply puts her savings into a simple index fund investment and receives an average annual return of 7%?

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