Your Car: A Vehicle To Financial Freedom
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It’s easy to see your car as a source of good.
It gets you from A to B on time and stops you from walking. Anything to avoid exercise and improve your quality of life!
You’ve become so used to having one you can’t imagine life without it, like a cell phone or an annoying coworker.
So, the idea of getting rid of it doesn’t sit well. It’s a valuable asset, man.
While this may be true, it’s also the number one killer of wealth in western society. Okay, that was a little strong but it wasn’t a lie.
Here are the reasons why.
In America, the average car payment is at a whopping $523 per month.
This amount invested throughout a year, if done correctly, could earn you $5 million. Yes, you read that right – your car is costing you the chance to become a millionaire.
And, with leases and finance options reaching 60 months and more, it’s not as if you can opt out at any point.
Once you sign on the dotted line, you’re committing to an asset which is worth less than the amount you pay for it on a monthly basis. #Carcrazy.
AND NOT WITHIN YOUR BUDGET
Apart from being generally pricey, it’s also beyond the scope for a lot of people.
After all, $523 is a massive chunk of a person’s salary; money you could spend elsewhere.
Still, people convince themselves they need a car and invest in one regardless of the risks.
What this means is that not only is a vehicle costing you money, it’s also adding extras on top. The fees for interest and the late payment penalties add up to jack up the price.
And, you can’t afford the original payment plan so you’re bound to get into debt.
THERE ARE UNFORSEEN CIRCUMSTANCES
You’re driving along and get shunted. The damage to the car is huge and it’s going to cost a fortune. Your insurance policy may cover it, yet it wasn’t your fault.
Anyway, they can be sneaky and void premiums to save their skin.
All this and you haven’t got around to mentioning the health impacts. Coverage in the US ain’t free and that’s another expense.
You can schedule a consultation today with a legal expert as the best ones get the win.
Of course, the best way to avoid these nasty, out-of-the-blue bills it not to drive. Walking is less likely to result in damages to your body or a depreciating asset.
YOU HAVE OTHER RESPONSIBILITIES
So, a car is an expensive, long-term investment which may not be within your budget.
To add insult to injury, it’s also low down on the list of your responsibilities.
Adults should focus on investments, their 401k, and a Roth IRA.
Unfortunately, it’s tricky to do when there isn’t enough left over from your wage. Getting rid of the car will free up hundreds of dollars on average for you to eliminate debt and build wealth.
That’s why it’s a vehicle to financial freedom.
Would you consider giving up your car to save tons of cash each month? Start the discussion below!
Let’s start walking more!
[a contributed post]