Passive Income

If seems like every day, someone calls Dave Ramsey’s Show complaining about the amount of debt that they have. Usually, the first thing Dave asks is ‘how much do you owe on the car’? Nine times out of ten, the amount is absolutely ridiculous. Don’t get me wrong, you need reliable transportation. You just don’t need to spend $475 a month for the privilege of doing so.

It is virtually impossible to get wealthy purchasing assets that go down in value. You would never buys stocks if you knew they were going to go down in value, would you? When you finance a new car this is exactly what you are doing. In fact, a good rule of thumb is to sell anything that you cannot realistically pay off in 18 months or less. Honestly, I just do not understand how anyone can justify spending $475 a month for a car when you can save for a few months and buy a decent used car in 6 to 10 months. My wife and I cannot afford to spend $475 a month on food, much less a car that is becoming less valuable every single day.

If you are in debt and cannot afford to pay your mortgage, sell the car. If you are late on paying your electric bills, sell the car. If you want the life you deserve, sell the car. Millions of American’s debt issues could be solved by following three simple words – SELL THE CAR!

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