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.
How you’re likely perpetuating your money problems
A friend came to me and let me know they were struggling to pay their rent and their car note.
I then asked them if they were willing to eradicate the car note and trade down their car since they were struggling to make ends meet.
If you require a car for transportation, acquire one by all means. But do you need a luxury or a new car? No. And you most definitely don’t need a car that’s out of your budget.
Financial Samurai put it perfectly: Never buy a car over 1/10 of your income.
And I recommend you take it a step further: Never buy a car over 1/10 of your net income.
What does this mean? Avoid purchasing cars with all the bells and whistles.
You should never sacrifice your livelihood for another unnecessary cost like buying more CAR than you can comfortably afford.
The moral of the story: Never put yourself in a position where you will struggle to pay for both your rent and your car note; this is an entirely unnecessary pain to put on yourself.
If you’re unwilling to sacrifice temporary setbacks for long-term gains, you will continually inhibit your financial success.
I paid off my car in three years and drove it for over a decade. There were many opportunities to buy a new car, but it didn’t fit into my financial goals. If your car purchase puts financial strain on your money, walk away or go with a lower priced option.
Never prioritize how you drive more than how your driving affects your pockets.
5 Other Things You Can You Cut From Your Budget
Maybe you have a pricey Amazon or online shopping habit (buy what you need and never a dollar more).
Maybe you’re subscribed to multiple streaming services (subscribe to one and bum off your friends for the others).
Maybe you’re subscribed to multiple gyms you never frequent (you only need one gym membership).
Maybe you’re eating and dining out too frequently (cut your eating out to a designated weekly limit for your health and pockets).
Maybe you’re renting or bought a place that is a bit too out of your budget.
These enjoyable habits and purchases can become nasty, ravenous financial monsters if you’re not careful.
Delay your purchases to build wealth and avoid unnecessary financial strain; it’s frequently not worth it.
And if you’re struggling to pay your bills because of unnecessary purchases, it’s definitely NOT worth it.
Re-align your priorities and get comfortable going against the societal grain of living above your means and presenting a better picture of your finances than what actually is the case.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.