The magic of car ownership if you must have one
Vehicle lease vs purchase Many people have written about the topic of a lease or purchase of a vehicle. In most instances a vehicle is a depreciating asset. In other words you lose money on it. It is completely fair to not have the expense of a car. If you do obtain one expect to pay for it, the insurance, the maintenance, fuel, etc. A lease is an agreement with a dealer that you agree to pay the amount per month to essentially rent the car. You then get the option of buying the car at the end of the lease term. A car purchase you either take a loan or pay with cash. In order to decide which is financially beneficial for you let’s crunch some numbers. Example: A 2022 Toyota Corolla is MSRP 20k. 1. You pay cash. 20k is gone and you pay expenses for the car.…
People are losing money on rent! Find the wealth!
If you have seen my other post about real estate you know the benefits of investing in it as well as the negatives. In my opinion the way we live is backwards. We should be buying property first when we are young not renting and we should be renting when we are older. Example: Young adult: You are 22 years old and just finished college. Starting your first professional career in banking. You earn $50000 per year. You do all the right things maximizing retirement, emergency fund, doordash on the side, making some extra money, start SEP ira, have a Roth IRA, and have an HSA account. You have $0 for a home down payment and you don’t have a lengthy job history for the bank to give you a home loan. You will be stuck living in a rental. You end up paying $1000 per month. You are spending…