A Spending Reduction Plan That Has Nothing to Do with Lattes
It's great if you've got the time and discipline to track, analyze, reduce, or eliminate every expense you incur. However, some of us just are not inclined to become budget geeks.
Is there a way for us carefree spenders to reign in monthly spending without pouring through receipts and spreadsheets? Thankfully, the answer is "Yes!"
Transportation takes up an oversized portion of many families’ budgets. Making loan or lease payments on late-model cars is one of the top reasons why many American families fail to achieve financial success.
You don’t use your car very much. According to an article in Fortune , cars are parked 95 percent of the time. Even though it seems like you are constantly running errands, how much of that time is the car parked? Of course, whenever you are at home, the car sits in the garage.
What's your motivation for owning a late-model car? Keeping up with the Joneses? Impressing people? Can't resist the smell of new leather?
The cost for keeping up with the Joneses is high, and getting higher. For decades, I have told people that spending money on new cars is one of the biggest reasons people fail to achieve financial security. It is easy to see why. According to The Balance, the purchase of new vehicles in 2017 resulted in an average monthly car payment of $479. At today’s rates, that would be enough for a payment on a $100,000 mortgage.
Add to the $479 the costs for insurance, maintenance, and fuel. Got two late-model cars in the garage? Double it all.
Need a Plan to Get out of Those Monthly Payments?
Although I disagree with the 12 percent investment returns, this John Miller Real Estate video provides the framework for getting yourself out of those burdensome car payments.