Don’t buy a new car it just doesn’t make
any sense financially. Buying a new car it’s one of the worst financial decisions that you can make in your life. Buy the nicest kind of used car that’ll
get you from point A to point B. Carpool if you can. Use public transportation. I call this the “net impact” of spending money. Like a $40,000 new car that you buy. If you invest that instead, that $40,000 car is gonna be worth $300,000 or more of invested money in 30 years. And you might be thinking of “Ugh. But I
really want this car.” It’s up to you. I’m not telling you to buy the car or not buy
the car. Just realize that you’re trading two things when you buy a new car. The
first, you’re trading all of your life that you spent making the money to buy
it. So say you make $20 per hour after
taxes, that $40,000 car it’s taking you over 2,000 hours of your life to buy it.
Depending upon how much you work. The average American works a little bit less
than 2,000 hours a year. You might be working an entire year just to buy that
car. And in addition to the money that you’ve traded to buy it, you’ve lost the
opportunity for that money to grow over time. As I mentioned, growing to over
$300,000 in 30 years. And so you’ve missed that growth opportunity.