Why your need for a new car will kill you financially

A thread

Yesterday I tweeted, "I don't think the average person comprehends how much money they spend on cars"

Let's quickly examine this and the opportunity costs

Can you "afford the payment?"

When you're buying a new car, this is the question at hand. Car sales has become an art where they mathematically engineer the numbers to get the payment within your price range.

These days, the average payment is $570 per month.

If you did simple addition over 30 years we are talking $205,200

TWO HUNDRED THOUSAND DOLLARS

This is only your cost to purchase the car. We're not even considering the higher insurance, fuel, upgrades, and upkeep.

What about the opportunity cost of that money?

$570 per month compounded at a very conservative rate of 6% over 30 years turns into...

$561,606

Over half a milly to keep up with the Jones'!

How about the average market return over the past 10 years at 9.2%...

$1,024,064

One last example for dramatic effect...

The S&P has had an average annual return of 13.6% over the last 140 years. What's the damage over 30 years?

$2,448,056

I can nerd out and run scenarios all day. Don't even @ me with the longer time frames. I KNOW!

What are you going to do with your $570 a month?

I know my plan:

Don't give a shit about expectations
Live within my means
Spend on what gives ME value
Invest in the future of my family
Enjoy #StealthWealth on my terms