#1 Wealth Killer (The Hidden Cost of Financing a Car: How It Affects Your Wealth!) 20/3/8 Rule

Welcome to our channel! In today's video, we're diving into a critical topic: the true cost of financing a car and how it can impact your financial health long-term. With the average monthly car payment now around $700 for new vehicles, is it worth the hit to your wallet?
🔍 Here's What We Cover:
1. Introduction: The Cost of Financing a Car
Why financing a car is often seen as a major wealth killer.
The impact on your financial health over time.
2. Average Car Payment Statistics
Current stats: $700 for new cars and $500 for used cars.
3. Understanding Car Financing
How car loans work and the commitment of monthly payments.
4. Opportunity Cost of Car Payments
How spending on car payments could be invested instead for potentially higher returns.
5. Investment Example: $700 Monthly Payment
Scenario: What if you invested $700 monthly instead?
-Math Example: Investing $700/month for 30 years at a 7% return could grow to about $1.6 million!
6. The Depreciation of Cars
Cars lose value quickly: ~20% in the first year and ~60% over five years.
7. The Financial Impact Over Time
How financing a $30,000 car at 4% interest can end up costing you around $33,000.
Math Example: With a 10% interest rate, it could cost $34,035!
8. Long-Term Wealth Accumulation
The benefits of investing consistently versus spending on depreciating assets.
9. Alternatives to Car Financing
Consider options like buying used, saving for a down payment, or leasing to reduce financial strain.
10. Conclusion: Take Charge of Your Finances
Recap key points and encourage viewers to rethink their car financing decisions for better long-term wealth building.
Don’t let car financing hold you back from achieving your financial goals! Hit that like button, subscribe for more financial tips, and let us know your thoughts in the comments below.
#CarFinancing #FinancialHealth #WealthBuilding #Investing #PersonalFinance #MoneyTipsThank you for watching today's video! If you enjoyed, check out some of our videos linked below!
Don't Forget to Follow my Instagram to see some special content over there!
/ greyson_reed
Thank you for watching today's video! If you enjoyed, check out some of our videos linked below!
-
-
Don't Forget to Follow my Instagram to see some special content over there!
/ greyson_reed

[@rosieaustin9911]

Restaurant food versus cooking at home would be interesting.
Great video 🎉

[@greysondevendorf]

Thanks for the idea! I might just do that!

[@hails1244]

Great videos!

[@greysondevendorf]

Thanks!

[@hails1244]

I know this may be morbid (especially for younger people), but can you do a video on annuities. Like, it sort of sounds like a product that acts like a pension in your later years ... ?

[@greysondevendorf]

I really appreciate the feedback! That is a great idea for a video! I’ll see what I can do

[@hails1244]

@@greysondevendorf (note: also the downsides of it, like it sounds too good to be true so there must be a catch or else everybody would simply get one.)

[@greysondevendorf]

@@hails1244 for sure. I’m thinking I can make 2 separate videos. 1 of like the… what is it? And then another video explaining how to navigate this aspect of finances