1- Few downsides for buying a new car:
- the car loses it's value fast
- you pay for still unproven and technology that is not tested enough, give others 10 years to be the cars test drivers.
- Costco is known for it's credit card that gives you 2% back on all purchases in store. You can beat that by getting Chase Freedom CC, which gives you 5% money back every few quarters for COSTCO and similar stores. Also, DISCOVER, while not acceptable at the counter, gives you the same discount at COSTCO's website. So you can buy COSTCO prepaid cards that get mailed to your address and you get your 5% money back.
- Costco sends a mailer about items that WILL be sold at a discount in 2 weeks. Some of these items have a limit on how many you can purchase. You can game that system by buying these items withing 2 weeks before the discount kicks in. Then you show up with your receipt and you will get a refund for the discount if the purchase was within 2 week. However, these items don't count towards the limit of that discounted item
- In the US. Banks give you a very low interest rate in checking accounts. I will list numbers of 2020 Jan
- Checking accounts (around .01%).
- A better place to save your cash is to open a savings account online. Discover, for instance gives you around 1.7% these days. While this is way better than a checking accounts (or a savings account in a brick and morter bank) you can still do better
- Treasury bonds, Series I pays 2.2%! These are considered the next safest thing after cash. You buy a 30 year loan from the government at a fixed rate + inflation adjustment. In fact, you pay no fed taxes on the earnings. And they can be purchased online, for no fee. The money compound tax free until you withdraw it, or if you designated to for college education for your kids they are Tax free! There is a 10k limit, per person, per tax year. see Treasuredirect.gov
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