Why Cars Often Delay Financial Independence

I sent my Dad a video the other day of a Toyota Tundra that made it to >999,999 miles on the odometer before the owner finally decided to get a new one. I told him that was my goal too! 😂

These Toyotas can go forever!

My previous car was a Toyota Camry. And before that, I had a Toyota 4Runner.

All bought used, with cash, with quite a few miles already on them.

Only reason I didn’t drive them forever is because someone hit me in the 4Runner and totaled it & we sold the Camry so my daughter would have a larger car to drive for her first car.

I learned early on in our financial journey that cars are a terrible investment & can crush all of your financial dreams if you buy them the wrong way. LOL! 😂

Dave Ramsey has joked that driving cars, especially new cars, is like driving around with your window rolled down & throwing hundred dollars bills out of it.

And, while most people probably know cars aren’t great investments, they still buy new ones, with car payments, and trade them in every few years.

Insanity!

And we aren’t exempt from the insanity.

We made pretty good car decisions for a number of years, and then a few years ago, my wife would tell you that we made a car decision that wasn’t great.

We bought new (first time doing this).

With cash.

An expensive model.

That isn’t known to super reliable for the long-term.

And in just the few years we’ve owned it, it has depreciated to the tune of tens of thousands of dollars.

Money down the drain that could’ve been invested.

And now we regret it.

If you’re reading this newsletter, I’m assuming you want to make good investments. You want to have margin in your budget. You’d like multiple streams of income. You hope to achieve financial independence early.

If that’s the case, we’ve gotta stop letting cars delay our financial goals.

I know it’s so tempting to take out a car loan so you can get a nicer car than you could’ve otherwise afforded.

I know it’s so tempting to want to upgrade your car because your friend just got a new car.

But, just know, there’s a tradeoff.

You’re choosing to delay financial independence by going this route.

And that’s because the money you’re spending on cars, and for most of us, it’s a lot of money, could be invested in wealth-building assets instead. And as you accumulate those assets, they are what allow you to reach financial independence early and have margin in your life along the way.

A great way to “earn” extra money to support your ministry is to start making wiser decisions with cars. It’s not easy, but it’s worth it.

Oh, and I’m preaching to myself! 🙂