Cars, cars, cars
Americans love cars. We are fanatics about our cars. Those stupid things go down in value like a rock. According to Kiplinger's Personal Finance Magazine, cars lose 60% of their value in the first four years. Then, lucky you, you're making car payments for the privilege of losing your butt. It's amazing how many people do this. Most Americans. It's no wonder most Americans are broke.
A car purchase is one of the largest purchases Americans make that go down in value. Ten times out of ten, a car will lose its' value. You can't make money on a car, only minimize the damage to your pocket book.
Stop and Think
People really need to stop and think about the car buying process. Think about what millionaires do. To become a millionaire, you have to do what millionaires do. If you want to be middle class, do what middle class people do. If you want to be poor, do what poor people do.
The typical millionaire in America hasn't had a car payment in seventeen (17) years. I know you're thinking, "yeah, that's 'cause they're millionaires." Actually, no. They became millionaires because they didn't have car payments.
What does that car cost you?
The average car payment in America is $378.00 over 83 months, according to USA Today. If you invest $378.00 from age 25 to 65 in a decent growth stock mutual fund, you would have about $4.4 million dollars! That's an expensive car.
Still want to be a millionaire?
You have to make a decision about how you're going to live. Does this mean you can never have a new car? No. But you have to think about what that car payment is worth. For most Americans, that car payment is costing their kids college fund or retirement, and they are making almost no progress on their student loans.
If you want to win with money, you have to get rid of your car payment. Pretty simple, isn't it?
"There is an inverse relationship between the time spent purchasing luxury items such as cars and clothes and the time spent planning one's financial future."
The Millionaire Next Door
A car purchase is one of the largest purchases Americans make that go down in value. Ten times out of ten, a car will lose its' value. You can't make money on a car, only minimize the damage to your pocket book.
Stop and Think
People really need to stop and think about the car buying process. Think about what millionaires do. To become a millionaire, you have to do what millionaires do. If you want to be middle class, do what middle class people do. If you want to be poor, do what poor people do.
The typical millionaire in America hasn't had a car payment in seventeen (17) years. I know you're thinking, "yeah, that's 'cause they're millionaires." Actually, no. They became millionaires because they didn't have car payments.
What does that car cost you?
The average car payment in America is $378.00 over 83 months, according to USA Today. If you invest $378.00 from age 25 to 65 in a decent growth stock mutual fund, you would have about $4.4 million dollars! That's an expensive car.
Still want to be a millionaire?
You have to make a decision about how you're going to live. Does this mean you can never have a new car? No. But you have to think about what that car payment is worth. For most Americans, that car payment is costing their kids college fund or retirement, and they are making almost no progress on their student loans.
If you want to win with money, you have to get rid of your car payment. Pretty simple, isn't it?
"There is an inverse relationship between the time spent purchasing luxury items such as cars and clothes and the time spent planning one's financial future."
The Millionaire Next Door
posted by Emma at 1:08 PM
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