MYTH: Car payments are a way of life.

Thursday, April 29, 2010

TRUTH: Staying away from car payments by driving reliable used cars is what the average millionarie does; that is how he/she became a millionaire.

The car payment is most folks' largest payment except for their home mortgage, so it steals more money from the income than virtually anything else. Most people get a car payment and keep it most of thier lives, as soon as a car is paid off, they get another because they "need" another new car.

If you keep a $378 (average/normal car payment) rather than investing that money from age 25 to 65, a normal working lifetime, in the average mutual fun you would have $4,447,084 by age 65.

Rather, save $378 for just 10 months and you can have a $4000 car that is paid for. Save the same amount again and in 10 more months you can have a $8,000 car, do it again for another 10 months and in 30 months you could have a $12,000 car without ever having made car payments.

No comments:

Post a Comment

Christy Glocke. Design by Pocket