Don't get me wrong! Everyone likes new cars...
I don't want you to be enslaved to that bill that comes along with that car...
Let's break it down...
The average car note in America is now $500/month.
$500/month x 12/months (1/year) = $6,000
The average American has a car loan for approx. 5-7 years.
12/months x $500 = $6,000
5/years x 6,000 = $30,000
In 5 years you could have had the opportunity to put a down payment on 2 houses!! Just off the repayments on your car! No other savings!
In that time the equity would have increased, as well as the appreciation of your asset! Now you could have an asset that would cover that liability 10x over!
I have noticed the best way to buy a new car is if you use the money from your income-producing assets, the net cash flow from your properties should cover that car note. You should never spend 1st generation money...
What is first-generation money? First-generation is when you go to work every single day, 40 hours a week, 80 hours every 2 weeks at your job. If you use that money to spend it on liabilities e.g: bills, mortgage, food, children's tuition... You will always be enslaved to work in that job. Take that money, and invest that money!
It seems simple right? It's ultimately up to you! You should never be enslaved for 20-30 years just because you bought a new car, or you have a mortgage to pay on a house!
Never spend first-generation money, first-generation money is only supposed to be spent on investing, which they should be used to pay for your liabilities. As opposed to you working for your liabilities! This isn't impossible!! It's about having the knowledge and having someone to guide you to where you need to be, that's what I'm here for.
This is the age of building wealth, this isn't the age where you are content with just working a job. I'm NOT content with working for someone else and giving them the power to get rid of me at any moment. You have the opportunity to change the culture of your life!
Work that job, but don't become enslaved to that job, the same way you don't have to be enslaved to your liabilities.
Let's talk about what we are going to do from this point forward...
Sometimes you have to sacrifice the nice lavish parts of life short term to have those things in the long term.
I'm not saying don't buy a car, I'm telling you there are ways that you can be smart about it so you are not becoming a slave to your first-generation money. Buy an asset that pays for your new car while increasing your net worth and equity!
Jemal 👑
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