In keeping with our theme of a handful of basic strategies to learn and incorporate into desires to be financially free, this is a biggie : NO NEW CARS. Yes, i said NO NEW CARS. If you crunch the numbers it is staggering how much a new car will cost you over the course of 40 years or so. A lot of people will buy a new car every 4-5 years or so. A new car depreciates in value so fast it will make your head spin, as soon as you drive it off the lot you have just lost $5,ooo or more. It’s like taking 100 $50 dollar bills and throwing them up in the air and not caring where they go…. Along with rapid depreciation you also get to contend with much higher insurance premiums on a new car, along with the normal maintenance and wear and tear parts that need to be replaced. Over the course of your working life if you avoid new and only buy a good used car and keep it maintained, and hang on to it for a good long while, you will save several hundred thousands of dollars. YES, SEVERAL HUNDRED THOUSANDS OF DOLLARS!! This one habit can change you from a paycheck to paycheck person to someone who controls their own finanacial destiny and the freedom that comes with it…. Like the old commercial use to say – Just do it!
If you can incorporate this lesson into your core being and ignore the “keeping up with the Joneses” mentality, YOU will be on your way! John and Debbie http://debbiemeyers.realtor