> David Fox has plenty of savings. He earns hundreds of thousands of dollars each year. Recently, he allocated $60,000 to buying a new car—but when he arrived at the dealership, he could bring himself to spend only $30,000 on a used model.<p>David Fox may be making the right decision here.<p>The question for me is whether I have enough saving to sustain a decent lifestyle in an adverse, yet possible, scenario (getting laid off, declining stock market, inflation, reaching an old age, high medical expense...). And incidentally, will the $60K car make me that much happier than the used one for half the price?<p>Even with a high salary, it may not be a very good decision to buy the expensive car.