The #1 Wealth Killer No One Talks About...

Let's talk about the #1 Wealth Killer in many countries, especially in America - that sits in plain sight.

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FREE GUIDES:

Timestamps:
0:00 - Intro
0:29 - What We Spend Money On
1:33 - Where We're At
2:22 - Case Study of a Honda
3:21 - Depreciation
4:04 - The Sweet Spot
4:57 - Taxes & Fees
5:36 - Financing
6:23 - Fuel
7:35 - Insurance & Saving Tips
9:23 - Repairs & Maintenance
10:53 - Another Helpful Tip
12:06 - Opportunity Cost
12:52 - Living Closer
13:50 - Top 4 Points Recap

RESOURCES:

PERSONAL LINKS:

PS: I am not a Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel

[Riggsnic_co]

Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

[TubesAXk]

To me, the main wealth killer with automobiles is the expectation that people have about wanting a new one every 3-5 years. A car that you've owned, taken care of (TRULY taken care of... using fuel and oil additives, changing the oil at the recommended times, periodically cleaning the sensors, avoiding road salt, etc.) may have depreciated considerably after 6-7 years, but if you've taken care of the car it will continue to last you for years. I usually keep my cars for 10 years. And the last one I kept for 14 years. There are cars that I've bought for $14, 000, years ago, that would cost about $30, 000, now, to replace. People waste a lot of money trading in cars every few years.

On a separate note, I think the whole art of 'maintaining things' has disappeared. Most items are only as good as how well you've maintained them - cars, houses, clothing, shoes. Not only do you save a lot of money maintaining things yourself, but there is also a lot of satisfaction and pride that comes with it. Don't waste your time on indulgent, instant gratification hobbies. Learn to fix and maintain things, like the prior generations did.

[lionrawr]

I was about to buy a car that's probably nicer than I can afford, this video is what I needed to bring me back down to Earth

[serlaws]

I used to be a car enthusiast. I've stopped financing cars 20 yrs ago. I'd pay cash for older luxury vehicles (7 to 10 yrs old) around $15k to 25K, spend a couple hundred to make them mint then sell them for around 90% of what I originally paid a few years later after I got bored with them. I did most of the labor myself. I decided to stop this cycle and bought a beater 2006 Toyota Camry for $4500 and focus on house upgrades. My house has tripled in value. I like driving around in a modest car and coming home to a high end home. Having a nice home is a bigger "Flex" vs a nice car. It's pretty embarrassing having a nice vehicle but living in an apartment or a rundown home.
Also, I have controlled my housing costs for the next 15 years until my home is paid off. The rental cost in my state and area is about $1000 more than my mortgage and property taxes!

[relaxwithme]

I drive a 22 year old Honda van. Every year or so I have to pump $800 into it for repairs, but I smile everytime I drive it. Not just because it costs me next to nothing, and not because owning it has allowed us to pay off our house, but because it is another reminder that my possessions do not determine my value as a man. I don't share this to brag. When I was younger, I lived in the shadow of debt for years. It really hurt me and my relationships. And I learned from it. I am sharing to inspire other people to live a humble life so that they too can embrace the peace that comes with it. Good luck everyone.

[adamv]

I live in Europe and this 2010 thinking is exactly why buying 1-5 yo car is probably the worst thing - everybody is doing it because they hear on media its best thing to do and they get a constant massage of "when you drive of from dealership the car looses xyz value, bla bla".
Also as the cars get crazy expensive, more and more people want to buy low mileage cars, hoping for discounts. But the amount of used cars on the market is limited.
You can get a 10-20% off at the dealers and probably sell after few years with minimal loss and have the car under warranty. Then if you want to save money its better to buy 10-15 yo car and be a car guy or have mechanic/friend check it, but you will also need to spend more time on it later to even find capable mechanics to do repairs and maintenance.
There is shortage of cars that have just few years or low mileage, nobody who bought the new car will sell it to you with significant discount just after few years or even a day, they either keep it to make use of it or drive a lot of miles/km.
So either in US the sitaution is different or you dont know what you are talking about.

[sfritts]

I've always drove old cars. My daily driver was purchased for $500 over 5 years ago. It's had very few issues and is now approaching 400, 000 miles. Also learning how they work and taking the time to do maintenance yourself will save tons. I'm over 40 now and have never had a car payment. I could care less about status. I enjoy my nice house and financial stability.

[cjp]

Without a car? In California? Hard to do. I agree with you that cars are a pain and cost a lot of money. I bought a new M3 when I turned 27, and it was totaled in about 2 years. My dad advised against getting such a car that can be destroyed any time. Thankfully, the accident wasn't my fault. But I lost my car. However, I ended up inheriting my grandparents car which was brand new. I don't know why they bought the car. But they bought the car around the same time I bought my car. And 2 years later my granddad passed away. My grandma basically ended up giving me their car. I take care of this car and still have it with only 148, 000 miles. According to my mechanic, I just need to look after it with proper and timely maintenance and it should be good for another 100K miles or more even. I plan to do that. Now, I’ve challenged myself on how long I can keep this car looking and running well. Thank you grandma and grandpa. ♥️

[Alvin_]

Such a valid video. Quick story: I was planning to purchase a gently used car in 2021. The car that I owned was 8 years old and just shy of 120k miles. Used car prices trade in values were through the roof and I had the finances to allow for a quality down payment and reasonable monthly payment. Then my engine as a factory recall happened!!! My engine was replaced for free. Fast forward 18 months later, I hardly have 12K miles on the new engine and I've invested or saved every penny of what my car payment would have been. I look at this as a blessing. I feel obligated to drive this car until the wheels fall off now 😅.

[splash]

costs outside of your initial car payment: insurance/deductibles, fuel, regular maintenance/repairs, accessories, cleaning inside/out, vehicle storage, parking fees/tolls, parking tickets/other tickets, tags/annual registration fees... and then when you get in a wreck, it all blows up on a whole new level....so in summary, cars are money pits just like a house and whether or not you "own" or rent, and they are still costly whether or not you take good care of them; you will never own it 100%...insurance is required even if you don't drive the car and are just storing it (some but not all states)...it's kinda like having property tax on a house you allegedly "own"; while you can minimize your cost, it still is expensive no matter which way you slice it...I say electric golf carts for everyone....live close to your work and necessities, and this would drastically reduce everything about the need to drive...having said that, it's not necessarily a simple fix but something to consider, and remember, driving is not a right, it's a privilege that can be taken away...just as easily as it was granted

[Erickruiz]

My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit.

[SOStudios]

This video came exactly when I've been debating getting rid of my car. I don't need a car for a daily commute to work. It really is staggering the monthly cost of even an older vehicle without a loan. With the prevalence of community car services it also seems pretty easy to take care of all of my errands in a month for less than $100. Living in a more urban area with higher rent can be totally worth it when factoring in saving an average of $900 a month on getting rid of a car and losing the headache of repairs, haggling with insurance people, and having to set aside useless cash piles in savings accounts for future bills and car purchases. Plus urban areas have better transit to lean on in the colder months and better cycling paths to lean on in the warmer months. I really do think if you don't need it for a commute there are plenty of alternatives and community car services that can really replace the need to own (in a city).

[williamj.dovejr.]

My ex wife used to drive me crazy with that... one car would be paid off, then she wanted to trade it in for a new one or constantly changing furniture and so on. I argued that that if something is in good condition, regular upkeep is happening, there's no need to do that and it's one less debt. We had different ideas on living well...my idea is to work on living debt free, not impressing the outside world. I'm almost there.

[EthanBrown_]

As a beginner, educate yourself: Learn the basics of investing and the stock market. There are many resources available online, including books, articles, and online courses. It’s a good idea to diversify your portfolio across different stocks and sectors to minimize risk. I’ve heard of people accruing over $550k during recessions and inflation, its important to do your own research

[JordanReam]

I am a Nurse and have been investing for a few years. I have reached a point where I could benefit from financial advice to improve my $200, 000 portfolio for retirement, how do I maximize my ROI?

[josededomenico]

I worked at a car dealership. If you’re going to buy a car, bring your own financing preferably from a credit union. Do not use the dealers financing . Do not take their warranties or any add ones they can remove it . Also if you’re going to do a trade in just know you aren’t actually getting what it’s worth they try to low ball you as much as possible .

[jill]

I share a car with my husband and our payment is $285 a month. We bought used before the car market went crazy and occasionally, I get the urge to trade it in for something newer and nicer but then I remember that would be 500-700 a month I can use to pay student loans, save for a house, etc. We all have to keep ourselves grounded and not worry about impressing others.

[chewyta]

I just spent three grand on an 18 year old Suburban to fix rusty rockers and another 400 on woolwax undercoat. 252k miles but it's paid for and I don't have to worry about it failing inspection and having to find something quick to replace it with. I only paid three grand for it 4 years ago to begin with and can fix most things on it outside of a blown engine or bad tranny but I keep up with maintenance on those. A current year model would cost over 60k. It runs good and now looks real good. I should get another 4 or 5 years out of it before I replace it with something similar from Texas. I also bought a 2009 Challenger SRT8 with 25, 000 miles for 29K last year. I don't drive it much. It's an expense but it shouldn't depreciate much or might even go up in value so I can move it in an emergency or if I want to put a barn/garage in my yard. 14 months in and I only owe $1100 on it.

Little tip if you change your own oil is to check the old filter and make sure the gasket came off with it or the new filter with two gaskets will poor oil out like a river. Did that once but was lucky and no damage.

[KookiDowg]

After starting my "successful" cubicle job that society usually depicts as success, I still daily and live in my 2005 Honda Odyssey. I love being able to pay off my debt much faster than If I were to rent a room while still being able to retain a lifestyle that I've always wanted to have. I'm not saying that the van life lifestyle is the ideal way to live as it has its cons such as the tendency of my van breaking down more so than a new car but I'll still be doing this while I am still physically and mentally doing so. Although, I work on cars as a passion so I don't mind the usual wear-and-tear parts break down. I'll get myself another beater van if the motor or transmission fails on me haha.

Don't get me wrong, I really want to get myself a 2023 Toyota Sienna Hybrid due to how economical and spacious it is but unless I'm able to pay off the van in a year or under, I refuse to do so.

[ElizabethGreene]

I couldn't agree more. It pains me to hear friends and family describe their money troubles when they have two practically new cars sitting in the driveway. My family and in-laws have always considered us "rich" or "well off" because we didn't struggle with money. The truth is that we're a single income household, and for most of our marriage our income was the smallest of any of us. Our secret was buing used cars (more used than you recommend in fact) with cash and driving them forever. Never having a car payment gave us disposable income and the financial wiggle room to recover when life happened.