The amount of money the average person pays in car payments, if invested in mutual funds, would grow to $5.6 million

Dave Ramsey, C.F.A. wrote:

Rich people don't have car payments. That's why they're rich.

You may be right but even the real Dave Ramsey is not a CFA so please stop holding yourself out as a CFA charterholder

If you don’t stop you’ll be reported to the CFA institute

You know another way to become a millionaire?

From age 25 to age 65 charge $6,100 a month to your American Express card that gives you 1.5% cash back. Invest that cash in the same "good growth stock mutual funds" you use to get a 12% annual return. Do that and you'll have over a million dollars.

Dave Ramsey, C.F.A. wrote:

Rich people don't have car payments. That's why they're rich.

After the next market crash the growth mutual fund falls to $2.0 million.

Ghost of Igloi wrote:

Dave Ramsey, C.F.A. wrote:

Rich people don't have car payments. That's why they're rich.

After the next market crash the growth mutual fund falls to $2.0 million.

I could get by on that

Dave Ramsey, C.F.A. wrote:

Rich people don't have car payments. That's why they're rich.

Where are my millions since I never financed a car? Always bought what I could afford to pay cash.

Where ? wrote:

Dave Ramsey, C.F.A. wrote:

Rich people don't have car payments. That's why they're rich.

Where are my millions since I never financed a car? Always bought what I could afford to pay cash.

You put avocado on your millions, toasted it and ate it for lunch, that's where.

Dave Ramsey, C.F.A. wrote:

Rich people don't have car payments. That's why they're rich.

Rich people don't buy nice cars. They buy nice houses since houses appreciate and cars depreciate.

Primo Numero Uno wrote:

Dave Ramsey, C.F.A. wrote:

Rich people don't have car payments. That's why they're rich.

Rich people don't buy nice cars. They buy nice houses since houses appreciate and cars depreciate.

You are buying the wrong cars.

Enzo Porsche wrote:

Primo Numero Uno wrote:

Rich people don't buy nice cars. They buy nice houses since houses appreciate and cars depreciate.

You are buying the wrong cars.

Stupid people make the arguement that supercars are good investments. For every super car that appreciates there are many more that don't, and for every super car that did go up in value you can find many stocks that went up at a much faster rate. Not to mention the insane maintenance and insurance costs.

Remove those 3 letters wrote:

You may be right but even the real Dave Ramsey is not a CFA so please stop holding yourself out as a CFA charterholder

If you don’t stop you’ll be reported to the CFA institute

https://www.cfainstitute.org/ethics/conduct/report-misconduct

Since you seem to be an expert on this, can I sign the CFA behind my username on here in order to seem cooler (although I can't say it qualifies me to give investment advice)? I'm an actual charterholder but I don't remember the ethics guides covering use in message board usernames in the materials.

Thanks,

kartelite, CFA

Primo Numero Uno wrote:

Enzo Porsche wrote:

You are buying the wrong cars.

Stupid people make the arguement that supercars are good investments. For every super car that appreciates there are many more that don't, and for every super car that did go up in value you can find many stocks that went up at a much faster rate. Not to mention the insane maintenance and insurance costs.

Moran. Only stupid people buy the wrong car.

So you're advocating wasting hours riding the bus so you can be a millionaire. If you buy a used Camry, you'll save enough time and money to be a multimillionaire.

Dave Ramsey, C.F.A. wrote:

Rich people don't have car payments. That's why they're rich.

Because they're rich they don't NEED to finance their cars.

HRE wrote:

Dave Ramsey, C.F.A. wrote:

Rich people don't have car payments. That's why they're rich.

Because they're rich they don't NEED to finance their cars.

Rich people lease cars. Doesn't mean I should.

Dave Ramsey mostly gives good advice but.... I've never made a car payment in my life and don't have anything like 5.6 million dollars saved (at 56).

Hardloper wrote:

Where ? wrote:

Where are my millions since I never financed a car? Always bought what I could afford to pay cash.

You put avocado on your millions, toasted it and ate it for lunch, that's where.

And you know this because you have 5.6 million stashed away, having avoided avocado toast like a fricking monk.

I don't have $5.6 million but I'm doing well and much better than I would have if I had not followed a similar theory -- never buy a new car, always buy reliable used Japanese cars and pay them off in full, then keep them for a long time.

It not only saves on payments but insurance costs as well.

And yes, I have considerable in mutual funds. Last week I switched plenty in my Fidelity IRA into the two new zero expense ratio funds -- FZROX and FZILX.

Smartly saving whenever and wherever possible

Dave Ramsey, C.F.A. wrote:

Rich people don't have car payments. That's why they're rich.

I think you have the causal arrow backwards there chief. Rich people don't need car payments because they're rich.

sub_3_is_the_goal wrote:

Dave Ramsey, C.F.A. wrote:

Rich people don't have car payments. That's why they're rich.

I think you have the causal arrow backwards there chief. Rich people don't need car payments because they're rich.

Rich people don't spend a bunch of money, relative to their net worth on things that go down in value. On average new cars lose 40% of their value in 3 years. That means that in 3 years, that $30k new car you bought will be work $16k. Turning $30k into $16k is not a good way to become rich.