The #1 Thing Keeping You Poor Nobody Talks About

This is the biggest thing that keeps people poor, particularly in the US and the UK. Lets talk about how it makes you poor, and how to save money on it!

TIMESTAMPS:
00:00 - Intro
00:43 - Psychological factors
01:23 - Depreciation
02:48 - The sweet spot
03:55 - Financing
05:16 - Fuel
06:36 - Opportunity cost
07:59 - Wrap up

SOURCE LINKS:

WHO AM I:
I'm Kiran, a qualified Accountant and experienced tax professional living in the UK. I make videos about finance, tax and investing.

MY FILMING GEAR:

DISCLAIMER:
This content, and the ideas presented in it, are for education and entertainment purposes only. Kiran does not provide tax or investment advice. The information presented does not consider the financial circumstances of any investor, and therefore may not be suitable for all investors.
Although Kiran is an Accountant, no Accountant-Client relationship is established with the viewer in any way.

[ninjaninja]

you know what they say, it's best to do things when you are young and not when you are old. When you are 20 and got a nice car you will have a good social life and great fun and when you go on holiday everyone wants to come. But when you are 40, saved up and with money, when you buy a nice car no one cares and when you go on holiday no one wants to come with you.

[stevegeek]

More people need to watch this video. I have never bought a new car, even though I could. I always buy a 4 - 5 year old car with cash, not credit, and make sure I look after it. Common sense really. I've been putting money into ISA / pension instead and just retired at 55...had I been buying new cars every other year I'd be working another 10 years at least before I could retire!

[andrewlowe]

I brought a 7 year old car 14 years ago. I just sold it as it wouldn't pass the mot it was 19 years old when i sold it, it was brought with cash. I just brought a 9 year old car with cash which will hopefully last me another 14 years. I prefer not to have monthly car payments and paying extra interest just to have the latest car on finance.

[quickcinemarecap]

00:03 Car expenses hinder wealth-building
01:11 Owning cars hinders financial freedom and wealth building.
02:13 Buying a brand new car is not a good investment due to rapid depreciation.
03:12 Avoid buying new cars to minimize depreciation costs
04:15 Higher purchase & PCP are expensive due to high interest rates
05:21 Fuel efficiency impacts your monthly expenses significantly.
06:28 Buy a lightweight petrol car to save money on upfront cost.
07:35 Invest your money instead of upgrading your car

[jamestravels]

Average age is 60, and when you usually own a car, you may be 25 to 28 years old. It means, half of life is already over. Now you have half life to enjoy the moments of short life. Better, not to think much about saving money by sacrificing your happiness. So, buy whatever you want Which leads to your happiness before your last breath. If you have money in banks, and didn't use yet, then i swear, its not your money. Your money is only which you have eaten and spent for your happiness. Because if you will die at any moment, that money will not be with you in graveyard. Simple!

[mikefrost]

440k on cars. Somebody lives in an elite bubble.

[flitsies]

But for some people investing their money means they have no money to enjoy their life, so no car means no transport which means they don't get around.

So though you are right you could say the same for everything you do, ie that take away meal, those designer shoes, those leather gloves that hair do all money wasted or is it? Money is made to be spent you can't take it with you when you die.

If you want a car then buy a car, what good is dying with 160 grand while you starve because you are saving money or investing, which I might point out the companies you invest with take the biggest slice of your pie you often just get the crumbs.

At least you should enjoy the vehicle you spend your money on, ie you may meet the love of your life, or nice trips to the coast, or enjoy the space with your loved ones.

Money is a means by which to obtain things we can't make ourselves, very few people can make cars, so they buy them.

As for electric vehicles they are more reliable than other types of fuel, so you could keep them longer and spend less on maintenance therefore the longer you keep them the better the return on your investment in to it.
Secondhand petrol and diesel is being outlawed so could at some point be a waste of money as you won't get the use out of it.

[clarkeysam]

While i agree with the general premise of the video, the assumption and calculation for opportunity cost is clearly incorrect, and therefore reduces the trustworthiness of other things mentioned in the video.

[asnow]

I am astounded that 1 in 2 cars are bought new outright in cash. I always use PCP or Lease because it means I get a brand new car, that will run with no issues for 3-5 years and I do not directly pay for the depreciation. Things that appreciate - buy, things that depreciate - lease.

[herameah]

I would just like to point out on your video its more expensive to run a electric car, please do the maths and you will see, stick to petrol and you will be ok

[J-zs]

Funny you said this went to buy a BMW at stratstone, cash...sales lady said cash isnt king lol said do a deal 13.9 % apr haha no thanks

[steventonkin]

Not many second hand EVs on the market 😂 are you kidding, the market is full of them the depreciation is massive 😳

[jonathanmcgovern]

Funny how the 'system', society makes renting always be seen as throwing money away yet never makes cars seen as throwing money away.

[johnmccrae]

Kiran you are so right.I gave up spending stupid money on cars.I now have a small Peugeot 107 for driving round town .It costs me nothing in road tax, does 60 to the gallon and is so cheap to insure.I love to park it by the big gas guzzlers in Tesco.Gives me a sense of satisfaction.

[marksmallwood]

I’m an IFA and cars are wealth killers. My car is 9 years old, bought 3 year old. Well maintained and still looks smart. Friends often ask when I’m going to buy a newer car and I just smile whilst I think about the investment portfolio I’ve created and the early retirement I’ll be enjoying instead.

[atinynomad]

Kiran, I'm 30 years old and only just now starting to learn about making smarter choices with my money and investing. I never learned ANY of the things you share from family or friends, heck, we rarely ever talk about finances. So thankyou for sharing all your knowledge through this channel. You are certainly teaching me so much and helping me to have a much brighter and secure future. Happy holidays 🎄❤

[LivegoodWilliam]

I have a 20-year-old 5 series BMW diesel I've had for the past 3 years. that i paid a grand for. i had finance years ago, never again

[dappergent]

The problem with today society is that we can have anything we want. You see 20-year-olds driving 40k BMW's and AUDI's only to realise they are on PCP, Finance etc. A colleague paying £600 a month for a new Škoda for crying out loud. There are reports in the car finance sector and there is a huge influx of people trying to return their new cars because they cannot afford to run them. The main reasons for the request of return are running costs, tyres and fuel.
This is, by definition, ignorance, and total stupidity, thinking they can afford to look good yet unable to afford to run the vehicle.

[RushmoorFizzbomb]

I bought a Nissan leaf from a main dealer that was 3 years old for £9500 inc 2 free services. 4 years later after a further 4 years and £700 of brake pads and tyres, sold it to We Buy Any Car for £8900.
We also bought in 1995 a 4 year old Merc for £25k, drove it for 28 years and sold it for £10k .Had we not been emigrating we would have kept it much longer as it was appreciating as a classic car. However I would only recommend keeping long term a car from a quality build manufacturer with a good parts availability.

[bzcbbpy]

400k.... But my car cost £100....eight years ago.... Still doing OK and it's worth £270 now.... Just an old mechanic that knows true price of cars. (1.6 diesel 60mpg)