That's right. There is a love affair going on in the homes of many Americans. This affair drains money from each respective home at about $400 a month. In some instances, after 3 years your extra lover just gets up and leaves you, with nothing to show for it except pictures. Your spouse even sees you with the lover and sometimes joins in on the action (or worse) has one of their own! This lover will reciprocate altercations involving financial concerns, and therefore is the #1 cause of divorce in America. Who is this mysterious relationship destroyer? Why do we still allow them to infiltrate our homes?
I'm talking about an automobile. That's right folks, America is obsessed with cars! This may not come as a shock to you because everyone knows this. If someone gets a shiny new car they usually get many accolades like, "Wow! Have you seen Jim's new car? He must be doing well for himself." Since when did cars become the gauge of how successful a person is? Just because someone can afford a lease on a $60,000 car does not make them successful. Even if they can afford to buy the car and make payments, it's just plain stupid. A car is the largest item we buy that decreases in value. It decreases so much that as you drive a new car off the lot, it has lost up to 25% of its original value, continuing to lose 70% of its original value after four years. This sounds like a great investment to me... NOT! Now, I'm not saying that you can never own a nice vehicle. I want you to drive around in a $300,000 Lamborghini but not until you can afford it. There are some rules of thumb if you want to buy a brand new vehicle:
1) Must be able to pay cash.
2) Must have a net worth over $1 million.
3) The total value of all your vehicles (anything with a motor) should be no more than half your income.
If you buy a used car of at least two years old only rules one and three apply. If you follow these basic rules of thumb you will avoid the biggest financial mistake made by most families in America and be on your way to success financially.
--A Future Millionaire
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