so what would happen if you took that car payment you might be making right
now and instead invested it every single month today we're gonna be talking about
how much wealth you could actually build for you and your family just by
investing the average American car payment every single month after you've
watched this video it might blow your mind how much money your car payment and
your car is actually costing you that's coming up right now
what's up guys it's Mike and chipper I am so glad to see all of you
once again how is your week bin new to this channel I just want to say welcome
highly consider subscribing because every single week on this channel I make
new videos that are gonna help you with your finances investments taxes and
things that are gonna help you in your career and your everyday life are you
guys loving this fall weather I am totally loving on fall weather here
where I live in California fall is like basically the only time of the year
where the temperatures dropped from the 90s down into the lower 60s and even the
lower 70s so the temperature is actually enjoyable
now so that's why fall is my favorite time of the year another favorite part
of fall is actually the pumpkin the pumpkin painting actually made this guy
at work not too long ago and I actually put a play boat on him sorry I just had
to share this pumpkin with you it kind of looks like me after a week of tax
season okay guys let's get this started back in a previous video I talked about
how in 2016 it was the first time in history that the average car loan
reached this the $30,000 mark and the average car payment back in 2016
reached the 500 the 500 and $30 a month range now beyond that you know typically
in the past car loans would only last or be financed for three to five years
starting in 2016 car loans can now be financed up to
eighty four months and the average American is taking between six to seven
years to pay off their vehicle so what does this all mean for you guys even
right now at this point in time as we were getting close to the end of 2017 we
are now our generation is paying more for their car than any generation before
them vehicles are more expensive than ever and people are paying more and more
interest on their vehicles so why does this all even matter to you and me well
the reason that matters is because if we're trying to get ahead financially
and we're trying to reach our financial goals a car is one of the most expensive
things we can purchase and it can do major major damage not only to our
current finances but to our future of finances as well so now please join me
as we take a step into the shoes the average American and what are we
gonna do as the average American we're gonna go get a car and the car we're
gonna get it's going to be a thirty thousand dollar car and let's pretend we
don't put any money down so we have a thirty thousand dollar car loan now we
finance the whole darn thing and let's just pretend our payment is five hundred
and ten dollars per month which falls in the national average range okay now I'm
really going to show you some examples of how much money you could generate if
you were instead not buying a car but investing this money we're gonna look at
two examples because I want to give you guys two different perspectives are
different ways to look at this in our first example what we're gonna do is
we're going to pretend we took all that thirty thousand dollars and just
invested it and we didn't invest any more after that we just invested that
money and then we let it sit we let it the interest compound on it over thirty
years chippers show them the numbers okay guys
like I was saying in this first example we've invested the thirty thousand
dollars and we're never investing again now through the power of compounding
interest we're gonna let this money grow as you guys can see if we invest $3,000
and even if we just get a measly 4% average annual rate of return this money
is gonna grow into a hundred thousand dollars after 30 years so we could have
purchased that vehicle three times now if we go look at what the average stock
market return would be which is ranging between six and eight percent if you got
six percent the money would grow to a one hundred and eighty thousand if you
got eight percent your money would grow to three hundred and twenty eight
thousand dollars if you guys are really good investors and you could knock out a
12% return every year then that thirty thousand dollars that she would have
spitting it into a car would have grown into a million dollars after 30 years
all right guys in the second and final example we're gonna look on-screen if
what would happen if we invested five hundred and ten dollars a month every
single year for 30 years and we got various annual average rates of return
and we can see what that's good money is gonna grow to right now chipper show
them the information okay guys assuming we invested five hundred ten dollars a
month for 30 years if we got a 4% rate of return the money
would grow to roughly three hundred and fifty five thousand dollars five percent
rate of return the money would grow to four hundred twenty six thousand dollars
if we got the seven or eight percent average annual rate of return to the
stock market the money would grow to six - anywhere from six hundred thousand to
seven hundred and sixty-five thousand dollars and if we were a decent investor
beating the averages if we could get a ten or twelve percent rate of return on
that money our money would grow anywhere from a million to 1.8 million dollars
after 30 years
whoa those are some interesting numbers if he asked me now my question for you
guys is what would you rather have now that you know this information would you
rather have a $30,000 car or would you rather have the chance to someday have
hundreds of thousands or even up to a million dollars or more someday the
choice is up to you most Americans are choosing the vehicle
over a million dollars but they don't even realize it they don't even realize
that there's so much lost opportunity cost and the reason they don't think
about it and that's really what this video is truly about is that just to get
us to think about it a little bit more think about hey you know can I buy a
cheaper vehicle well a cheaper vehicle get me the same result in Austin at will
there's a lot of options out there you don't have to go buy a brand new car
look for used cars I mean I'm going to show you right now why the Ford Windstar
is my wife and I secret weapon take a look I hope you all can see this right
now I'm filming in my garage with my iPhone this is my wife and I secret
weapon are one of our secret weapons in terms of how we're able to save and
invest so much every month what you're looking at is a 95 ford windstar van
this car has no payment on it it's completely paid off as you can expect
based on its age this is what I drive to work every day I just drive it to
working back and I'm gonna try to keep this car as long as possible because it
allows us to save and invest so much of our money every single month and of
course I get made fun of for driving this a car that's so old I cuz I have
the oldest car and parking lot now where I work and so I get made fun of but
really for the financial security we have they can make fun of me all day
long bottom line guys is it's so easy to get
a car there every single month I get multiple offers for auto loans every at
least two or three every single month to go purchase the new vehicle but you
don't have to delay gratification it can really build you know if you delay large
expenditures like this but instead invest the money you can truly someday
have financial freedom it's not that hard but you cannot be like the average
American we just can't if we want to achieve those kind of results you have
to think differently you and I have to think differently about how that
money impacts s now what the reason I think so many people struggle with the
idea of opportunity costs is because it's invisible until you actually
calculate what the numbers could be it's completely invisible it's not seen in
the real world you actually have to take time and sit down and look on paper what
that money would compound to over time at various rates of return I don't know
about you guys but what I found to be true in life is that often the person
with a nice car is usually broke whereas the person with an older car is usually
the person with money and I hope that you can see when I showed you that video
of that Ford Windstar I thought I truly do practice what I preach on this
channel I well I want to walk the walk and talk the talk I don't want to give
you guys fake information or fake advice there's too much of it out there and I'm
sick of seeing that I want to give you legitimate information of things I'm
doing so that you can do them too if you want to you don't have to listen to a
thing I say well I just encourage you to think a little bit more about these
large purchases and how they might impact your finances down the road if
you want to reach your financial goals if you want to get ahead financially and
for the rest of your life and set yourself up well this is one of the best
ways to do it is don't take out a lot of vehicle debt find the cheapest car you
can find and invest that money strategically plan your finances and run
it like a business and someday you too can have financial freedom
alright guys if you enjoyed the video make sure you smash that like button
share this information with a friend and be sure to subscribe if you've not
already if you guys have any questions or comments about anything we discuss in
the video just drop them in the comment section down below and I will make sure
to get back to you alright guys I just want to say thank you so much for your
support I love you guys thank you for taking time out of your day to watch
this video I will see you guys next week but until then I hope you guys have a
great week enjoy this awesome fall weather we're having and peace