Financial Freedom Means No Brand New Cars
I have been being doing a lot of reflecting lately with the extra time I have on my hands now due to COVID-19. I always have been a big believer on self-reflection exercises and I believe it is important to reanalyze what you want from life every now and then. I was doing some research on financial freedom and almost every article I found either said never buy new cars or never purchase a car unless you're paying cash for it.
A car is really not an asset. We have turned something that was meant to give us freedom and mobility into something that is enslaving us financially.
I have often recommended to clients; once your car is paid off, keep moving the amount of the car payment into your savings account. That can be used to take care of the car or save for your next vehicle. Or even use part of it as vacation money as a reward to yourself, like a trip to Disney World! (I prefer the last one)
What are things getting in the way of your financial freedom? Is your car one of them? What changes can you make?
This post is not meant to hate on anyone who has purchased a new car, sometimes it's just what you want, and that's okay! Just make sure you're being financially responsible and being honest with yourself that you can afford it. It feels amazing when you accomplish a goal, but you don't want to give it power to be something you could resent in the future.
Please don't use the "but what about the environment, Karolena?" when justifying a new car purchase. If we really cared so much for the environment:
We would make better grade fuel. (I need to research this more, but I have heard this a few times during mechanical training events.)
We would keep our cars longer.
We would focus more on creativity and innovation by making a vehicle last longer and adding improvements to help it be more fuel-efficient. These kits could be massed produced and help offset the job-loss from the previous point.
We would not build massive factories that attributing to the problems their vehicles are meant to solve.
We could give tax incentives or reduce registration costs whenever someone purchases new tires or does emission repairs.