Truth: Staying away from car payments by driving reliable used cars is what the average millionaire does; that is how he or she became a millionaire.
The car payment is most folks' largest payment except for their home mortgage, so it steals more money from the income than virtually anything else. USA Today notes that the average car payment is $464 over sixty-four months. Most people get a car payment and keep it their entire lives. As soon as a car is paid off, they get another payment because they "need" a new car (ME!!!). If you invested $464 per month from age 25 to 65, a normal working lifetime, in the average mutual fund averaging 12 percent (the seventy-year stock market average), you would have $5,458,854.45 at age sixty age.
This came from a book I'm reading and will be glad to share the title if anyone is interested.
Wow, it puts getting new cars and having the new car smell into a whole new perspective.
2 comments:
I remember reading that part in the book... I never finished it (the friend that let me borrow it had to move up North, so I had to return it)... it puts so much into perspective!! She SWEARS by his books & has done a seminar-type thing as well...
What is the book?
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