This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
You can’t save AS much after you buy the vehicle
Now hear me out: IF you can afford to go all out on a vehicle without compromising your financial present and future, then this article is not for you.
More and more people are earning six figures daily, which means they have access to higher loans, higher expenses, higher credit limits, and higher car notes.
For those considering buying a brand new vehicle or already have one sitting in the parking lot or garage, I want you to ask yourself,
How much is that car costing (or going to cost) me each month in future compounded investments?
The New Normal: 1K+ Car Notes
A friend of mine has a car payment worth $1,400. That’s a damn rent or mortgage payment! They are almost 100k in debt because of the car, have undiversified investments, don’t have an emergency fund, and have only one primary source of income.
They think they’re doing great because they’re earning six figures. But if you take a step back, you will realize they are cash burners who don’t have a solid financial plan to cover their ass if sh*t hits the fan.
Is it worth it?
I think we all know the answer to this question.
Nope.
Remember Everything Else That Comes Along With The Car Note
After car insurance, gas or electricity, and maintenance costs, you’re looking at somewhere around $1,000+ for your car expenses.
That’s a whopping $12,000 yearly (without interest) that you’re throwing away every month.
You might as well burn 12,000 dollars because that is what you’re doing.
Is it worth it?
Nope.
Even though putting your money in a savings account is the equivalent of burning it, at least it doesn’t burn as rapidly as a new car does.
Shiny objects have a price. There is always a catch. Are you prepared to catch the price?
New Cars Are Enticing
I know the new cars look great. Trust me, I’ve been looking at them myself for the past ten years, but I still haven’t got one because I’m not ready to throw away the cash quite yet because when you buy a car, that is precisely what you’re doing unless you’re making a modest purchase.
Don’t neglect your bank account to flex and experience “the high life.”
The high life is not the equivalent of a nice car or anything materialistic; if you think this, you got life backward.
Chasing materials is a dead and empty road.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.