Don't Use Car Loans
This one took me awhile to learn: Buying a car with a loan (even at 0% interest) SLOWS your route to Financial Independence (FI). You are way better off with a car you own outright.
The simple reason is that your cash could be making 11.7% in stock market index funds INSTEAD of paying for a depreciating asset.
You don't want to be paying for something every month - except for rent (see Don't Buy a House) - because that's a double whammy:
- You can't invest money that you spend
- You delay FI because you need more investment to support your higher expenses
Maybe you can get by without a car. If you can't, then get good at buying and selling used cars. This skill will pay off for you big-time.
Side note: Building almost any skill that others are afraid to develop pays off for you because it's rarity makes it valuable!
Every financial decision you make either accelerates your FI or delays it. Keep that in mind.
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