How cars affect your financial freedom

I had a revelation about cars that has caused me to not really care what mine looks like. It's not that I don't want a really fast car, it is just that there is something I want a bit more: financial freedom.

Is any car worth your financial freedom?

The thing I have noticed is that so many people give up financial freedom for their whole lives solely because of the decisions they make with their cars. I know it sounds like a bold statement, but I think it is frightening how true it is.

For most people, a car is the second largest purchase they ever make. Second only to their home. The huge difference is that even if they make a bad home purchase, generally speaking it will go up in value over time. Car Depreciation on the other hand, is a beast. Regardless of whether you buy a new or used car, is going to go down in value, but the key is how fast does it go down in value?

So, if you compare a new car vs. a 6 year old car, the new car will lose a couple thousand dollars in resale value each year. The 6 year old car on the other hand will lose several hundred each year. If you think about it from an investors perspective, it is easy to see that if you must have an investment that loses value you will probably pick the one that loses LESS each year.

What if your car choice cost you $1 million?

A friend of mine illustrated this concept perfectly. He bought a 10 year old Ford Taurus for $500 from his grandma. He drove the car for 4-5 years and then sold it for $800. Not a bad investment at all.

It is an especially good investment when during the same period I saw friends buy brand new $25,000 cars and trade them in when they got sick of them a couple years later. My first friend had a monthly payment of $0 for 5 years and sold his car at a profit, while the other friends were paying $400+ a month on a car payment and ended up selling their cars for less than they owed. My first friend had that $400 to invest each month. The amazing thing is that one simple decision very well could have made my first friend $1 million in retirement.

That is why I am okay with driving an older car. The new car smell is nice, but not worth $1 million.

Should I never buy a new car?

Dave Ramsey would say yes. I don't necessarily feel that strongly about it, but financially speaking it isn't the best decision. I do realize that there are other "non-financial" factors that could be affecting the decision. But, I will say this - IF you do buy a new car...

• Research it and find a reliable one
• Maintain it
• Take great care of it
• Plan on keeping it for a decade.

These are the best ways to get your moneys worth out of it.

Break the car-payment cycle

The key is to break out of the car payment cycle. Far too many Americans believe that they will always have a car payment. The goal should be to get the cars paid off as fast as possible, then start saving cash to buy the next one with cash. It is a nice feeling to have all your cars paid off and be in a position where you can save $400 a month to buy your next car with cash, rather than using that $400 to pay off a loan.

This is not my content

8 reasons Rubbing Alcohol is my money-saving hero!

Posted: 06 Oct 2008 10:33 AM CDT

You know they say you can't be all things to everyone. Rubbing Alcohol apparently disagrees. After doing a little investigating, I discovered a bunch of uses for it that I never knew about before. The beautiful thing is that you can get Rubbing Alcohol (isopropyl Alcohol) just about anywhere for less than a buck a bottle. It is for these 8 reasons that Rubbing Alcohol is my hero!!

1. Rubbing Alcohol erases "permanent" markers!

Even though they claim to be "permanent," Rubbing Alcohol proves them to be liars. When your 5-year old decides to draw the family on your countertop with a Sharpie, your friend Rubbing Alcohol will come to the rescue. Just dab a cotton ball with it and start rubbing, it will come right off!

2. Rubbing Alcohol prevents ring around the collar!

Are you tired of people thinking that you don't take showers because you have stains on your shirt collar? Well, your friend Rubbing Alcohol wants to help. Just wipe your neck with Rubbing Alcohol each morning before you get dressed. Never again will your shirt collars look like you used them to scrub the floor.

3. Rubbing Alcohol fixes Mosquito Bites!

Have itchy mosquito bites ever made you feel like you are going crazy? Well, Rubbing Alcohol wants you to help you keep your sanity. It actually works better than a lot of the store-bought "remedies." Just rub it on the bites and it will dry them out bringing quick relief to help you keep your sanity!

4. Rubbing Alcohol gets rid of "Sticky"!

Just this past weekend I picked up a SINGLE pine cone and got sap on my fingers. I washed my hands three separate times. After the third time, the paper towel I was drying them with still stuck to my fingers better than if I had used glue. Rubbing Alcohol has no patience for this type of "stickiness." I should have used my faithful friend and the problem would have been solved.

Oh, and don't forget Rubbing Alcohol is great at removing sticky price tags from gifts.

5. Rubbing Alcohol keeps bugs away!

Rubbing Alcohol scares spiders, so rub it around windowsills and entrances to keep them out!

Fruit flies are terrified of Rubbing Alcohol because it kills them almost as well as Raid. Mix 1 cup of Rubbing Alcohol, 1 tsp of vegetable oil, and one quart of water in a spray bottle. Ready. Aim. Fire! 10 points for each one you kill!

6. Rubbing Alcohol makes a cheap ice pack!

Have you ever broken your arm? Well, Rubbing Alcohol probably won't be able to help - you should go to a doctor.

But, an ice pack could come in handy from time to time. All you have to do is mix one part Rubbing Alcohol with three parts water and place in a strong freezer bag. Place in freezer until needed. It will make a slushy ice mix that stays in the plastic freezer bag making it easy to shape. When needed just remove the bag from the freezer and wrap with a towel. And you thought Rubbing Alcohol was just for lighting things on fire!

7. Rubbing Alcohol is a weed killer!

Did I mention that Rubbing Alcohol hates weeds? Just mix 2 tablespoons of it with a pint of water and fill up a spray bottle. Drench every weed you find! Make sure you hit your targets and no innocent by-standards, because Rubbing Alcohol actually hates most plants.

8. Rubbing Alcohol helps get rid of cold sores!

It is statistically proven that when you have a cold-sore you get kissed fewer times. Rubbing Alcohol does not like news like that. So, next time you get a cold sore, try dabbing on a little Rubbing Alcohol. It will dry it up and shorten the life of the cold sore to get you back to being the Casanova that we know you are!