Interesting point about the monthly $500 invested rather than making a payment. He left out the fact it doesn’t take 40 years (age 30-70) to pay off the car! I’d also love to know where he’s getting an annual return of 12.5% every year for 40 years!
I used to alwsys only go to delaer ship intil i bought my first impala lt no payment i trick tgem out can get tgem for 2k smooth ride n i know the car i can trust it for lomg trip its just like a new car to me biught anlther one cause i sold my baby bad mistake new ones better condition loaded i had basic and best part only 3k but it does have 100k.
Of course she doesn’t care if you guys go in debt with a car payment she’s not the one paying it tell her to shut up and if she wants to make money decisions she can make her own miney
I like Dave’s advice and of course these are proven methods he recommends BUT as a 23 year old I’m not looking to be rich when I’m almost dead in my 60s I’m trying to be rich in my thirties.
I financed my first car, even though i was able to pay it cash. I never had any credit and i was told it is the quickest way to build it. Was i told right? Personally, i never really cared about credit, i wanted to be a person who can just buy stuff without financing, but it seems more difficult qith every year that passes
With the depreciation of money that 5.6 million will be worth about 1.8 million by the time you’re 70. Granted this is still a significant amount of money, who the hell wants to be wealthy a few years before they die?
The goal is to build wealth when you’re young enough to enjoy it.
I hate when Dave quotes investments. His $500 a month is not really feasible. That is an average of 11.8% return over the span of the 40 years he quoted. Certainly not impossible with managed investments, but even then, very unlikely.
If a car loses half its value in the first two years, then why would you ever want to be the one who owns it during those years of massive depreciation? Buy the car used after its already lost half its value. It'll still have 90% of its mechanical life left and can be bought for half of its original price. And it's still basically a brand new car, it might only have 20,000 miles.
Buying a brand new car is probably the biggest financial mistake most people make. It's just not worth it unless you have money to burn, but most people dont.
My car gives me the freedom and joy to do whatever I want wherever I want. If I didn't have that then I dont think I'd be here today. So I choose to live the way I do because living like he says would sick or so much joy and happiness from my life I probably workshop even be here.
You should never worry about depreciation on your car so long as you plan to use it daily or few times a week. A car will never be a wealth building tool if you plan to use it consistently and for personal use. As soon as you signed the paperwork, it is considered used and will never sell for full retail price. It should be used as a helpful tool rather than anything else
Mate, who would care about a car in their 70s. Most people have reduced reaction times, poorer vision and no passion to drive better cars. That's the age they'd say they just need a car to take them from point A to B. What good is a luxury/sports car in your 70s when you sacrifice your 20s, 30s 40s and 50s driving cheap $5000 cars. Yea of course there's a reasonable amount you spend on a car but paying cash always means majority of people can't drive more than $10000 cars. If you're earning say $3000 per month on average living with a partner, 1k rent, 1k food and other expenses, you can afford the average 500 car payment and save/ invest 500. That's per person. So defo they can afford to do that. Nonsense saying car payments are always bad. Be reasonable, get payments in accordance with your salary. Yh overall you pay more in interest but its smaller condensed payments making better cars affordable. Of course someone on a 2k salary cannot spend 800 900 per month but 200-300 is fine.
That is why Africans > Debt: They pay cash for cars and homes, avoiding loans and messy credit. Americans? Mostly financing and long-term debt. Save smart, stay debt-free! 💸✨
Depends on interrest rate and duration of the loan. Low% for short duration you might be better off investing the cash you have and taking the loan. If its 10% or higher for like 6 years plus, then yeah pay the dam thing cash. For example i bought a brand new car, 3% over 6 years, i can get 6-8% very reliably by investing it in a tax free account. Mathed it out befor buying and i would be losing about 2-3k over those 6 years if i bought it cash
shouldnt use the average. Median is a better number to use for the majority of americans because many extremely wealthy people can afford 2k/month payments on a rolls royce or a jaguar and will choose that over buying the car because of how quickly they depreciate.
Interesting point about the monthly $500 invested rather than making a payment. He left out the fact it doesn’t take 40 years (age 30-70) to pay off the car! I’d also love to know where he’s getting an annual return of 12.5% every year for 40 years!
I used to alwsys only go to delaer ship intil i bought my first impala lt no payment i trick tgem out can get tgem for 2k smooth ride n i know the car i can trust it for lomg trip its just like a new car to me biught anlther one cause i sold my baby bad mistake new ones better condition loaded i had basic and best part only 3k but it does have 100k.
Of course she doesn’t care if you guys go in debt with a car payment she’s not the one paying it tell her to shut up and if she wants to make money decisions she can make her own miney
Debt is a rich persons best friend. They use it leverage their assets not their liabilities.
I love how no one even talks about the farming simulator in the bottom anymore
Those numbers are WAY off. From 30-70 years old 500$ a month a Roth IRA would be 1.2 mil, *not including taxes*. Unc forgot it’s not the 90s…
I like Dave’s advice and of course these are proven methods he recommends BUT as a 23 year old I’m not looking to be rich when I’m almost dead in my 60s I’m trying to be rich in my thirties.
This is stupid. If you have a 5% interest rate you will blow that out of the water with the buying power you can invest by not paying cash
I financed my first car, even though i was able to pay it cash. I never had any credit and i was told it is the quickest way to build it. Was i told right? Personally, i never really cared about credit, i wanted to be a person who can just buy stuff without financing, but it seems more difficult qith every year that passes
"Rich people say the best way to get rich is to stay out of debt"
Rich dad poor dad: GET AS MUCH DEBT AS POSSIBLE
This farmer sucks
5 million in 40 years is criminal 😅
95 percent of wealthy people were born into wealth. Just like Dave
501 for a car payment is nuts 🤣
With the depreciation of money that 5.6 million will be worth about 1.8 million by the time you’re 70. Granted this is still a significant amount of money, who the hell wants to be wealthy a few years before they die?
The goal is to build wealth when you’re young enough to enjoy it.
That’s a sad life let others borrow your money so they get rich while you wait and live lifeless until your 70
I hate when Dave quotes investments. His $500 a month is not really feasible. That is an average of 11.8% return over the span of the 40 years he quoted. Certainly not impossible with managed investments, but even then, very unlikely.
Pmaooo my car payment is 3500 a month
If a car loses half its value in the first two years, then why would you ever want to be the one who owns it during those years of massive depreciation? Buy the car used after its already lost half its value. It'll still have 90% of its mechanical life left and can be bought for half of its original price. And it's still basically a brand new car, it might only have 20,000 miles.
Buying a brand new car is probably the biggest financial mistake most people make. It's just not worth it unless you have money to burn, but most people dont.
Only difference is.. a car loan isn’t 40 years
My car gives me the freedom and joy to do whatever I want wherever I want. If I didn't have that then I dont think I'd be here today. So I choose to live the way I do because living like he says would sick or so much joy and happiness from my life I probably workshop even be here.
Bro has already went bankrupt bc HE can’t handle debt, debt can be a great tool for people that are more responsible than him
Yeah I’ll just not have a car my whole life so I can have $5 mil when I’m 80 and can barely do anything.
Youre assuming people take that 500 and invest it though. People don't do that.
Why do we gotta watch someone play FarmVille just to listen to Gordon Ramsey. Ridiculous.
You should never worry about depreciation on your car so long as you plan to use it daily or few times a week. A car will never be a wealth building tool if you plan to use it consistently and for personal use. As soon as you signed the paperwork, it is considered used and will never sell for full retail price. It should be used as a helpful tool rather than anything else
Rich people don’t avoid debt, they know how to make it work for them.
Wifey wants to drive a big car to show off while husband pays it of every month 😂 i bet if she had to fully finance the car herself, she wouldnt do it
Mate, who would care about a car in their 70s. Most people have reduced reaction times, poorer vision and no passion to drive better cars. That's the age they'd say they just need a car to take them from point A to B. What good is a luxury/sports car in your 70s when you sacrifice your 20s, 30s 40s and 50s driving cheap $5000 cars. Yea of course there's a reasonable amount you spend on a car but paying cash always means majority of people can't drive more than $10000 cars. If you're earning say $3000 per month on average living with a partner, 1k rent, 1k food and other expenses, you can afford the average 500 car payment and save/ invest 500. That's per person. So defo they can afford to do that. Nonsense saying car payments are always bad. Be reasonable, get payments in accordance with your salary. Yh overall you pay more in interest but its smaller condensed payments making better cars affordable. Of course someone on a 2k salary cannot spend 800 900 per month but 200-300 is fine.
Practically the best way to grow your business is through business loans
So buying a deprecating asset cash is better, uh ok
Yeah, but those same rich people will tell you to invest money one way while they invest it in an entirely different way
That is why Africans > Debt: They pay cash for cars and homes, avoiding loans and messy credit. Americans? Mostly financing and long-term debt. Save smart, stay debt-free! 💸✨
Yeah. Have the same car for 40 yrs and invest. Then you won't be rich, but you'll have enough for retirement.
Lol dave is about 4x short smp 500 by 40 years 500 month in an ira is 1.2 million.
holy avg car note is 500 a month mine is only 140. though I did put down like 15k so that might be why.
why are you listening to your wife?
A car payment is only gonna last a couple years not a lifetime like the ROTH IRA
“The best way to become wealthy is to stay out of debt…” yeah with wages so low people are taking out loans for chipotle….
Depends on interrest rate and duration of the loan. Low% for short duration you might be better off investing the cash you have and taking the loan. If its 10% or higher for like 6 years plus, then yeah pay the dam thing cash. For example i bought a brand new car, 3% over 6 years, i can get 6-8% very reliably by investing it in a tax free account. Mathed it out befor buying and i would be losing about 2-3k over those 6 years if i bought it cash
shouldnt use the average. Median is a better number to use for the majority of americans because many extremely wealthy people can afford 2k/month payments on a rolls royce or a jaguar and will choose that over buying the car because of how quickly they depreciate.