Working Adults: Don’t Buy A Car If You Can’t Afford It

Alphonso Ngiam
3 min readNov 9, 2020

High ego and pride will be your downfall.

Let me tell you a story about the 25 year old me and my huge financial mistake.

I dreaded every month end, logging into my mBanking app to see the figures in my bank account, only to be disappointed time and time again with myself.

I worked hard in my job and was paid a decent and stable income. However, I lived paycheck to paycheck at that time and till today, it still makes me wonder how I survived that period.

I made mistakes. Huge financial mistakes. At 25, with an income of $4,000 a month and little savings, I bought a BMW because I was young and egoistic, I wanted to be seen as the young man who got his life set for greatness.

I bought a BMW (left) and wrapped it in metallic blue because I was “young and cool.”

I was elated when I first collected the key and turned on the engine. The deep growls from the car made me feel like I could take on anything in the world. I met friends and took them out for a spin and felt amazing receiving praises about my latest purchase.

That probably lasted for 2 weeks.

Because it was a second hand car, and the fact that I did not do my part in getting the vehicle checked, it was filled with problems. That is when I started forking out more and more money to fix the issues.

On top of the initial down payment, the repairs were upwards of $8,000, not forgetting the upkeep of the car; fuel, road tax, insurance, parking, installments etc. My monthly cash outflow for the car alone was already more than $2,000!

According to my fellow Singlish friends, there’s a Chinese saying that goes “没有将大的头就不要戴将大的帽子。”

Loosely translates to, if you don’t have such a big head, don’t wear such a big hat.

I was not ready for the luxury. I just stepped into adulthood and was barely gasping the idea of adulting. Heck I didn’t even had my insurance settled yet (basic adulting 101)!

Granted, I had very little responsibilities then, therefore I had some spare cash to splurge on myself. On hindsight, I should have just kept the money, invest it and let it grow, to generate passive income to feed my wants.

If I could turn back time, I wouldn’t have gotten myself into that black hole. How people see me was so important then. Now, I have learned that you only have yourself to answer to.

We only have one life to live. Ego and pride can result in very, VERY poor decisions in the course.

So to you who’s reading this, if you are just starting out in life and are seeing some money in your bank account, remember that you are not “rich” yet. Don’t buy a car just yet. Access if it is really necessary for you. Don’t splurge and reward yourself excessively. Not yet. Build up your portfolio and grow it first before enjoying the fruits of your labor!

Have you made a huge mistake like that? Share with me a poor financial decision you made in the comment section!

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Alphonso Ngiam

I am a Wealth Consultant who made enough financial mistakes in my early 20s to help you avoid them.