Have you ever bought a new car on credit? They smell. Bad. When you pay cash they can actually smell pretty good.
What I mean is this: If you don’t have the money, you don’t need the car. When BROKE PEOPLE go to purchase a car, they say “how much down and how much per month?” When RICH PEOPLE go to buy a car they ask “how much?” do a little wheeling and dealing, and then they pay CASH for it.
I don’t know about you, but I love the idea of paying myself the amount of a car payment. When we had a car payment, I HATED it! Don’t get me wrong, I love new, sleek, fast cars, but I just can’t stand sending in that check each month for something that doesn’t pay me back in any way!
How many times have you heard “I’ll always have a car payment”?
That’s a load of crud.
A while back, Amber and I sold both of our cars to finish off the last bit of our debt. We hit craigslist and bought older used cars. The windshields are cracked, only some of the automatic locks work, and a couple of times a year, we have to make a repair. But guess what: we aren’t broke anymore. We don’t owe anyone money. And it…feels…goooood!
NORMAL in America when it comes to our finances means broke, living paycheck to paycheck, stressed out and on the verge of a meltdown. And, if that is NORMAL then I want to be a freaking weirdo!
Think about it this way:
- What if you decided to STOP messing with car payments?
- What if you invested that old car payment every month instead of giving it away to the bank?
- What if there was a six-year plan that would put you in free cars for the rest of your life?
- What if that plan also made you a millionaire?
Dave Ramsey said it this way:
Car payments are the mantra of the middle class. As long as you keep a car payment, you’re going to be mediocre in your finances. It’s just stupid. Avoid that. Pay cash. Save up and pay for whatever you do.
— Dave Ramsey, Radio Show 2007-06-08
Check out this video. Its basic 8th grade math.





