ADM Mitigation Strategies

[Tomster]

Not efficient Tommy. You can do better with participating in online surveys from the comfort of your lounge chair and make lots more just for fun. Stocks do very well also but thats no fun it is overkill for a $15k mitigation plus keeping that money in stocks does more for you by keeping it in stocks.

I don't know, it seemed like If you hussle, maybe.

Hey look. People know how to make whatever supplemental income they have to. You are like me. I do things for myself and I save a bunch of money doing it, but I don't justify an ADM by counting on the savings. Maybe some have to rely on that kind of strategy, but others don't.

And did I ever introduce myself to you as Tommy?

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[Arcadia]

Mitigation 1
I knew I was going to buy a GT500 years ago so when I bought my home in Southern California 2 years ago I opted for Solar Panels. They cost a lot but give you dollar for dollar equity value in the home and you get a big rebate but since that is long term money I won't count it. My solar panels 0 out my bill and earn me 60 dollars a month. Average annual electric costs avoided are about 2400 plus 720 profit paid to me from the electric company. That is $3,120 per year and if you tally that over 5 years of keeping the car it is $15,600. I have erased the ADM plus put $600 in my pocket.

The ADM is an Opportunity Cost. You choose to spend this money on the ADM vs something else. It is a simply about how you value your money and what has the most value to you. If the ADM for the car wins out in your decision making process rejoice in your decision and enjoy the car to the fullest. No one forces you to pay ADM - it is a conscious decision you make - so embrace the decision! No need to do this other stuff to try and justify your decision. .

 

[btown93]

Buying the latest and greatest new car at the peak of the hype at introduction with ADM is not financial "chess". If people have the means and want to do it, as others have said, life is short.

 

[edmd007]

Dude, I like your ideas. Mitigation is a fine way to look at it. I think people forget the second letter is "suggested" retail price vs absolute. Again, in a free market cost is what someone will pay. For me, I look at things like this as "time value." i.e. what is the value of my time. For instance, I spent the majority of my youth, teenage and college years cutting more grass than I care to ever see. So to pay someone a 150$ a month to cut the grass now, something I am more than capable of, is an easy decision as during the time it would take me to cut the grass every time for the then entire month, buy fuel and maintain equipment, i can make 20 times that much at a job that I am incredibly proficient at or I can work 30 minutes and have enough $ to pay for an entire months worth of yard maintenance and have all of that other time for whatever I want. So, hey man, I agree, save where you can. No different than shopping cost on mortgages, interest rates on loans or sales at the grocery store.

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