I was listening to Tim Ferris’s podcast yesterday, and came across a Mr. Money Mustache interview. Highly impressive, and I really enjoyed it.
My biggest take away was the car debt. I am currently trying to get rid of my debt and trying the snowball effect. I was able to payoff over $3,000 in credit card debt this year. My next big item is my car. Earlier this year I owed over $6,400 on it, but have been able to bring it down to precisely $4,600 still owed as of today. I orginally paid $14,800 for the car, a 2012 Honda CR-V, when it had 70,000 miles on it. Today it has around 120,000 miles. I am hoping to hit high mileage on it and have it for many more years(hoping). But that’s why I bought a Honda CR-V to begin with.
I love the question, and I don’t know where it came from, but when I was looking for a car, that lasted a really long time, so I didn’t have to make car payments all the time. Someone posed the question: “What older lasting cars do you see on the road the most?”. So when I was in the market, I was paying attention hard. I kept coming across these CR-V’s from the late 90s to the early 2000s on the road. My uncle even had an older CR-V, and whenever my cousins would fly in to visit him, they would use all the time. They even got in a decent accident with it from the rear, and the car still kept running, even though it was making a mild sound all the time since. So I knew that a CR-V was of my highest ineterest.
But Mr. Money Mustache pointed out that a car payment takes a good chunk out of your total monthly expenses. I know of people trying to live for their vehicles, and they are paying $700+ a month to live for that vehicle. I honestly think that’s insane! That was more than my rent when I first started out.
Mr. M.M. brought up a really good point though, that we live in this rich world of the U.S. and most of us are hardcore consumers. And there is a point in life, to where enough is having enough. His total yearly expenses are around $27k, which is pretty good for a family of three.
I enjoyed his advice and his story. Great job to him and Tim!