Times were hard, I had just bought a house, I was short on cash, and I needed dependable, economical transportation to get to work. I’ve still got it, and it runs like clockwork.

Just before I retired I treated myself to a new car, a brand new 2010 Japanese sedan, with a standard shift, the small engine, and no frills. It was the cheapest model on the lot. I traded in my 20 year old junker and kept the 2003 as a backup.

This time I paid cash. Sometimes you’ve got to play their game, you may have no choice. But only do it on your terms, not theirs.

I always buy the cheapest car on the lot, the economy, no-frills model, small engine and standard gearbox, I pay cash for it and I keep it an average of 10 years. I’m usually driving a cheap, beat-up ride a few years old, but I’ve got no debt, and I always have a backup if I need one.

No, I’m not interested in leasing.

And if one does, don’t let the salesman get to talking about how much per month it will be. Stick with the total cost.

“How much can you afford per month? $410? Perfect. We can just move this Immaculata Perfection four wheel drive with 3.6 liter engine and the 7-speed OilOMatic transmission with overdrive for the overdrive and the upgraded front carpet from 36 months to 60 months and we have money so spare!!!

“Would you like to add the rear seat DVD players with wireless headphones to keep the kiddies entertained on those long trips down the freeway to the grocery store? We can do that, and still keep it under $440 per month. A slight increase, I realize it, but what is your peace of mind worth? Etc.”

You’ve picked this stuff up the hard way, or went to school back when you learned how to balance a checkbook in class.

There are a lot of things that should be taught in our schools that aren’t. But I can understand why fundamental economic literacy is a dangerous subject to let loose in a society like this.

I just want to know where Carolina does her banking. I haven’t seen 4% compound interest in years.