How to Succeed with Money in Divorce: Don’t Have a Car Payment

I’m a Facebook guy. I post too much on there. In the last couple days, I’ve posted about personal finance and investing and had a lot of responses.

I thought the post has a lot of applicability here because it’s about how to succeed with money. This advice applies really well to those going through divorce. Enjoy:

“Yesterday was fun. Here’s another fundamental thing you can do to create serious wealth: do not have a car payment. Let’s look at how millionaires buy cars (because, if we want to be a millionaire, maybe we should do the things they do). Most bought a car two years old or older (cars go down in value fast). Typical millionaire spent around $25,000 on the most recent car. That’s less than 1% of average net worth spent on the car. Average person, by contrast, spends 30% of net worth on the latest car purchase. Do millionaires take out car loans? Not really. 80+% purchase their cars outright. So, most millionaires buy modest cars for cash. Lest you say something like, “Well, sure they do that because they’re nasty evil rich people, and I can’t act like them,” this is how they acted before they were millionaires, and it’s one way they became millionaires. Car loans suck money from our families and invest it in a commodity that goes down in value like a rock. You can’t become wealthy by paying interest on an investing in things that invariably go down in value.”

Moral of the story: don’t have car payments. They steal money from your family.

Published On: November 15th, 2017Categories: Financial PlanningComments Off on How to Succeed with Money in Divorce: Don’t Have a Car Payment
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About the Author: Marco Brown
Marco C. Brown was named Utah’s Outstanding Family Law Lawyer of the Year in 2015. He graduated with distinction from the University of Nebraska College of Law in 2007 and is currently the managing partner of Brown Family Law, LLC.
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