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No More Car Payments
Don't buy into the lie that you have to borrow money to buy a car.
Here is an excerpt from a blog by Chris Hogan, expert on wealth-building, personal financial and retirement.
Eliminate Your Car Payment Forever
Let’s say the paid-for car you’re driving now is worth $12,000. Instead of taking out another loan to buy a new car, stick with your set of wheels a little longer. In the meantime, put your $554 car payment in a good money market account specifically to save for a car replacement—and, in less than two years, you’ll have $12,000 cash plus your trade-in to buy a nicer, new-to-you car without owing the bank a single penny.
Once you’ve learned how awesome saving money can be, you won’t mind driving your current car a little longer while your car-replacement fund grows. So, let’s say you get really into the spirit of saving and add $554 a month to your fund for five years, then—in less time than it would have taken you to pay off a new car loan—you could have $33,200 plus your trade-in to buy a new ride.
Of course, you don’t have to use all that cash to buy another great used car. What you could do is leave enough in your car-replacement fund to keep growing until your next car purchase. At this point, you can stop contributing to your car-replacement fund and put that $554 toward retirement instead. Now, that’s something worth working toward!
If you need help with a budget or a savings plan that can get you to your next car without a payment, I can help.
You can master your money... and I can help!
Contact Michelle Serna by filling out the Contact Me form to the right of this post.
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