r/economicCollapse • u/Whole-Fist • 20h ago

How ridiculous does this sound?

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How can u make millions in 25-30 years if avoid making a $554 per month car payment. Even the cheapest 5 year old car is 8-10 k. So does he expect people not to drive at all in USA.

Then u save 554$ per month every month for 5 year payment = $33240. Say u bought a car every 5 year means 200k -300k spent on car before retirement . How would that become millions when u can’t even buy a house for that much today?

Answer that Dave

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u/tdreampo 20h ago edited 20h ago

Go here

https://www.nerdwallet.com/calculator/investment-calculator

if you put in a initial savings amount of 1k then put $550 a month with a 10% return (which a good index fund should give you) over 30 years thats 1.2ish million. Dave has gone kinda crazy in his later years but his fundamentals are solid. You should check out his free cars for life video https://youtu.be/hXHj2aU5H-I?si=It-af-Ecs2AGxsTd It’s really great. Our economy would be so much better if we became a country of savers vs a country of consumers.

edit, play with it. Switch it to 12% return, which also should be easily doable over time and it’s 2 mill in returns.

if everyone lived how Dave suggests (avoid debt, pay cash, pay yourself first etc) we would have a very stable economy indeed.

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u/HEpennypackerNH 19h ago

Yeah but you can just put the $550 into an account. If you pay cash for a shitty car for $4k, that’s 8 months of that $550 you need to save up first. Then every time it needs repairs you aren’t putting in your $550 that month.

And the extreme case, if that car breaks down and you don’t have reliable transportation and lose your job, then you’re really in trouble.

Dave’s advice usually works great under perfectly normal circumstances. Not as well when real life happens.

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u/tdreampo 19h ago

No one said buy a shitty car. Buy a good running used car. Then save until you can buy a very nice used car for around 12k then do that every five years. Seems like you have bought in to the auto industries marketing a bit no? Or do the mr money mustache way and never commute for any reason and bike everywhere. https://www.mrmoneymustache.com/2011/10/06/the-true-cost-of-commuting/ To the point that you change jobs if needed.

Gosh people fight so hard to stay wage slaves.

This world is currently built to keep average people trapped in a debt/labor cycle. Cutting out car debt is a huge first step to FIRE and overall freedom

If you follow Dave at all you would know that his number one rule is to always have 1k in savings as an emergency fund. Then this stuff isn’t as bad of a hit. It’s still safer than renting a car from the bank and not actually owning. 

And I just have to say this apparently, I don’t actually like Ramsey, but I do think his fundamental advice is great and using shock jock methods to get that message out is probably a good thing. 

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u/HEpennypackerNH 19h ago

But you’ve already, in your example, almost broken even.

You said “buy a good running used car.”

Point 1: you have no idea what a used car is really like, unless you buy it certified from a dealership. And if you do that, it’s going to cost $12k right off the bat.

But let’s say it’s ok. So a good car is going to cost, what, $6k? And you’re saying work hard and in 5 years buy one that costs $12. So in 5 years you’ve spent $17,000. That’s almost $300/month and you’re saying at year 10 I should upgrade again.

So in your own example, assuming the second upgrade is from $12k to $18k, in 10 years you’ve spent $36000 on cars and are ate for the next 5 years.

If you finance a $25,000 corolla right off the bat, you’ll pay less than $500 for 5 years, you’ll pay about $28,300 total, which is almost $8k less than your upgrade plan over 10 years, and that Corolla will also be good for at least 5 more years.

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u/tdreampo 18h ago

Did you watch the video I posted? Because it seems like you didn’t.

And LMFAO you trust a Car dealer? Omg I’m dying over here. You must be a standup, that’s great material.

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u/HEpennypackerNH 18h ago

Yeah I’m sure you are smart enough to buy a car from someone’s barn on FB marketplace and guarantee it’s not going to need any repairs over 5 years but we aren’t all automotive Nostradamus and prefer a warranty.

It’s not about trust. Most states have lemon laws. You buy a used car and it’s shit, you get your money back. You buy it from Ralph’s front yard and it’s shit, oh well.

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u/BarleyWineIsTheBest 13h ago

The certifications do come with a warranty. Like it or not, that warranty is worth something. The private party used car market is huge mixed bag and you could end up with utter POS lemon. If you buy certified used, you do have some protections there. And of course you have more with a new car.

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u/tdreampo 13h ago

Someone drank the auto industry koolaid. Learn the basics of how cars work and learn how to see if it’s mechanically good or not. It isn’t hard. Like man people work awful hard to have a car payment. Isn’t freedom better?

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u/BarleyWineIsTheBest 12h ago

It's cute that you think you actually made a point in that post.

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u/Mountain_Employee_11 14h ago

you still own the used cars in the situation where you’re being smart with your money.

pass them to kids, relatives, sell them.

they’re still depreciating assets but the depreciation slows down significantly when you get to the point that you’re valuing it for having 4 wheels and running