Financial Freedom Quick Tip #10: Ditch the car payments
Today’s tip is a bit of my own, and a bit from my friend Nate.
Many people think car payments are a way of life, but that simply is not true.
There’s a different strategy that works. Save up, pay cash for a cheap car, and pay yourself the car payment. If you want a better car, save a little longer!
I can personally attest that this is possible, and absolutely worth it. I drove an old messed up car for about three years, and saved my money during that time. Eventually I was able to afford to buy a better car. Cash.
I am now driving a very nice car, that I bought 2nd hand. It’s reliable, safe, powerful and luxurious. I have no car payments, so I’m already saving up for my next car. I will never buy a car on credit again. No car payments ever again. Never.
Another thing about cars: people often just don’t realize how freaken expensive they really are! If you want to find out what your car is really costing your, you can read Liberta’s article about the cost of car ownership, and use the car costs calculator to see for yourself.