Your Car is Making You Poor!

When building wealth, your focus should be on acquiring investments that appreciate in value and provide cash flow. Unfortunately, over 90% of Americans erode their wealth building through car ownership! That’s right—the common car loses 15% to 20% in value each year, and it increases your monthly expenses by an average of $8,500 per year due to insurance, car payments, fuel costs, maintenance, and repairs.For the past decade, Americans have purchased an average of 6.5 million vehicles per year. At an average cost of $36,700 per vehicle, that means that Americans are paying over $237 billion for new cars that are losing $45 billion in asset value every year—that is insane!Over 80% of American workers live paycheck-to-paycheck—some of that is because they fall prey to common money mistakes such as buying cars that sink in value. If you’re living paycheck-to-paycheck and looking to get ahead, you should first take a look at your car to see how much it costs you. If your car’s value is worth more than 50% of your annual income, you likely have way too much car, and you should get rid of it!Many people find themselves upside down in their car, so they stick with it—been there, done that! If you’re in that situation, the truth is that it is probably better for you, in the long run, to sell your car and take out a personal loan for the difference than it would be to hold onto it—time only makes it worse!So if you’re serious about building wealth, focus on getting rid of sinking assets such as cars and focus on acquiring investments that grow your wealth. Good luck!