Day 49: More Debt Myths

Bellwork:

• Budget Challenge
• EverFi

Intro to Debt:

• Watch Video 2.2 "Dubunking the Credit Myths"
• take notes as you watch (pretend you're the teacher)
• Myth #5: Car Payments are a way of life
• not if you pay cash for your car
• millionaires drive reliable used cars
• that's how they became millionaires
• average car payment is $464 per month
• 5.5 million over 50 years in lost earnings
• The problem is our mindset
• 1/3 of car buyers 6 yr loan at 9%
• loses 25% of it's value
• loses 70% over 4 yrs
• Drive for Free
1. save enough money to pay cash for your first used car ($1,500)
2. make $400 car "payment" to your car fund for 12 months ($4,800)
3. buy "new" used car for $6,300, continue "payments for 12 months ($4,800)
4. buy a new used car for $11,000, continue payments for 60 months ($24,000)
5. buy a new used car for $18,000, drive that car for 8 years while your $12,000 investment becomes $24,000
6. repeat step five every 8 years forever
1. Total cost $35,000
7. if you continue to invest the $400 every month for 40 years you'll have an additional $2,000,000