Have you ever thought why in the hell am I so broke?
Your car payment! Cars are totally overrated in our society. You need to get from A to B but do you really need a $32,000 Sienna to get you there?
If you have a normal car with an average loan payment, I would say you pay about $300.00 a month.
If you pay car insurance (and you do because it’s legally required in all 50 states), most likely you pay $125.00 a month. ( I have 0 tickets and 0 accidents, an I pay $101.00 a month.)
If you pay car registration(again, of course you do unless you’re living in the country illegally), you most likely pay about $150.00 a year.
For maintenance and up keep of the motor vehicle (breaks, oil, fan belts, smog, tires, cleaning blood out of the trunk, wiper blades) I would say you spend at the very-least $500.00 a year.
I think most people pay about $60.00 bucks a week in gas.
Do those figures look about right to you?
It cost you about $8950.00 a year to drive this car. I think most of you would agree, these figures are low.
It was shocking even for me to see.
Now why in the world do people spend so much on their cars?? We’ve been programmed from a really early age to view our self worth by the car we drive. Sounds ridiculous? Perhaps–particularly when you consider that a car is a depreciating asset. That just means, and you know it when you’re upside down, that from the moment the car is driven off the lot, it decreases in value, although your payment stays the same. And many people, to afford the high sticker prices on new cars will take a 7 year loan. Do you know what that car is worth at the end of 7 years? Most likely, it’s very close to inhabiting a junk yard which if you haven’t seen one of these auto graveyards lately, it’s an eye opener. As a society we treat cars as disposable items.
You want to stop being broke? Seriously, get a reliable used car that somebody’s already taken the hit on its depreciation and keep it maintained until it can no longer drive. I read in the book the Millionaire Next Door, that a majority of millionaires polled said that they NEVER buy a brand new car, they look for a two year old car in great shape. They don’t care what other people think of them about the car they drive, why should you?