It's Very Difficult To Build Wealth When You Keep Making Payments

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[MG_Investing]

Same applies for the opposite. It’s very easy to build wealth if you own things that are very large in ratio to your income that go up in value.

[kennethmelnychuk]

I believe that Dave once said something akin to the insanity of paying for something to impress people that you don’t know(?)

[bl]

I.E. don’t get an expensive car that you can’t afford

[dominicankid]

Thank you dave for teach what you teach

[jayraitt]

Different levels to this for sure. If anything swallows up your whole income you cant reallt escape without extreme difficulty.
My car is 15% of my monthly income and i feel the pain from it.
I cant wait till i pay it off.

[ThinkingJames]

This is my biggest mistake in my 20's.. I bought a car and financed for 5 years.. I had no savings at all..

[yosileotuscomments]

so simple to understand it, but many don't want it.

[simonramirez]

If you make a 500$ payment for 7 years and yes you end up paying 40 grand.. but you also get a car that you know has been driven and matineeed all service always down on time, drives straight etc is a reliable car with very minimal things vs if you have a 3000$ car and have to change transmission a single parent with no support isn’t going to do that .. look if you own the car for 15 years cause you know how to take care of things then your payment really is an investment in a less chaotic 15 years when it comes to transportation.

[mike_valueinv]

Focus on the investing not on the purchase of consumption goods that usually lose a lot in the long term... Just plan carefully.

[Manihsi]

"I never thought of it that way."

[thecapone]

I worked all through college and had various scholarships. Whereas many students would graduate with tens of thousands in debt, I graduated with tens of thousands in savings/investments.
I was able to purchase a vehicle in cash. The rest was in savings and later, stocks. It has grown considerably the last 5 years. I never could have done that if I’d been making payments on cars. I stayed in the family home and that is owned. So no mortgage payments, either.

[Rev.]

Is it a good idea to borrow and buy land?

[nhanha]

When you look for 4 dollars per share to sale. In order for you to earn $2 per share. You must buy back same stock or different stock as 2 per share And you do that often you can. It will forcefully increase price.

[SabineCedor]

I think it's all about having cash paying assets making the payments

[ElMistroFeroz]

If you don’t plan to sell it it’s irrelevant.

[savagenorthfishing]

Some people are so poor that all they have is money.

[djstl]

I'll translate for people that have never listened to all your boats, campers, utvs, watercraft, classic cars 😂😂😂

[LarryLamb-wbnw]

Even if a home is an investment that could go up in value in time, be very diligent not to overpay and that the interest rate is not too high ! Make sure you are able to easily pay back your mortgage debt. Otherwise, don't take the mortgage !

[foxtrotdeltausn]

Bought my truck for $38k in 2021. 3 years later truck prices sky rocketed and it's worth $39k
At the peak of value it was worth $52k.
Didnt sell it because a comparable truck was $64k at that time. No reason to sell it unless I was downsizing.

[gonnahavemesomefun]

When I was in the early baby steps I sold my and my boys 5 motorbikes - one of Dave’s other tips is to remove expensive hobbies. Best thing I ever did.

With cars we have compromised. We had the opportunity to lease an electric vehicle. It meant we could sell our expensive cars to extract the equity. The EV saves me tax and saves us $500 on fuel a month. We bought a shitty second car worth $1000.

I am always amazed how much can be saved when you get creative.