Technology historian Stewart W. Leslie once said that “the automobile is the perfect technological symbol of modern American culture, a tangible expression of our quest to level space, time and class, and a reflection of our restless mobility, social and otherwise.” But according to the Wall St. Cheat Sheet the automobile is also biggest obstacle for achieving financial freedom in America. The average price for a light vehicle in the United States, reports TrueCar.com, was $32,957 in October, which was up $778 from a year earlier and equaled more than half of the annual income of the median U.S. household.
Millions of Americans are so in love with their cars and are so overwhelmed by the desire to appear rich and drive in luxury that they often sacrifice their wealth and retirement dreams. Here’s how:
Monthly Payments
The burden of monthly payments is lasting longer. A recent report by Experian Automotive found that the average auto loan has piled up to 66 months – the highest level since the company began collecting data in 2006.
Expenses
In addition to the cost of acquisition, the true cost of a car involves many expenses. There’s maintenance, insurance, and of course gasoline. A 2008 consumer expenditures report by the U.S. Department of Labor, found that the average vehicle costs $8,003 per year to own and operate.
One way to reduce the true cost of your car, says Wall St. Cheat Sheet, is to buy less expensive and dependable cars and use other methods of transportation such as bicycling.
Opportunity Costs
A typical American millionaire understands the value of money and doesn’t waste their cash on things that aren’t necessary. Thomas J. Stanley and William D. Danko, authors of The Millionaire Next Door, say that a typical millionaire would rather drive a Ford than a Lexus or Mercedes. You can easily save money by buying a used car for $10,000 $15,000 and driving it for at least 10 years.
Read the full article on Wall St. Cheat Sheet.
Tags: financially successful retirement, happy retirement, retirement debt, retirement savings
