Lets build wealth through Elimination.
Eliminating your car payment WILL make you wealthy. Looking to build wealth, but don’t know where to find extra money? It’s time to look at the thing your drive every single day. I discovered a harsh reality when I sold cars one summer at a Nissan dealership. Cars are nothing more than a status symbol, and almost no one could afford the one they buy.
Out of the 40 cars I sold that summer I remember very distinctly one couple who paid cash. It was a little old couple. Everyone else on our highways are driving around in a status symbol they cant afford. I was guilty of looking at vehicles and assuming the individual driving it was wealthy if the car was a BMW, Mercedes, or some other luxury. All I do now is look at at them and think, wow they must have a big car payment.
The numbers according to an Experian Report 2015 Fourth Quarter report:
Ave. Auto Loan amount $29,551
Ave. New Car payment $493
Ave. Used Car payment $359
Ave. term of loan 67 month for new cars 63 months for used
Ave. interest rate 8.78%
How much can you save?
These numbers are eye opening. Lets say you could eliminate your used car payment you would free up a lot of extra income. You would be able to save $359 x 12 months = $4,308 a year. This money could be used to either get you out of debt or invest it into your wealth fund! It doesn’t take much savings to become a millionaire the key ingredients are time and consistency.
Bottom Line: Money is being wasted on cars which lose value every single year. Its time to find a cheap car and invest the difference.
I hope this article helps you kick the car payment to the curb!
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