Car Payment Vs. Millionaire
The average payment on a new car is $500/month for 5 or more years.
If you paid cash for a reliable used car instead and invested that $500/month at age 25, by 65 you would have millions. Per the Dave Ramsey website:
"Simply put, if you didn’t have a car payment and instead worked with a pro to invest that $554 a month in your 401(k) or Roth IRA, you could retire with more than $6.5 million after 40 years, based on a 12% average annual rate of return."
Wow! $6.5 million? But as Dave Ramsey says, "If you'd rather have that new car and a huge payment, I really hope you like the car."
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