Love Cars? Not so Much Anymore
There’s an interesting trend that’s been developing for the past 10 years or better. Having a car is no longer a hallmark of becoming independent. On the contrary, especially in larger cities, cars are an inconvenience.
Based on numbers from the Federal Highway Administration, only “61 percent of 18-year-olds in the U.S. had a driver’s license in 2018, compared to 80.4 percent in 1983”
My children were early adopters of this trend as they realized the financial drain and environmental impact of manufacturing, owning and maintaining a car of their own. My 27 year old still doesn’t have a driver’s license, although he’s lived on his own for over 9 years.
If we assume a $100 savings per month – that he didn’t have to earn and spend on a car/insurance/upkeep – at a mere 1% savings rate – he’s saved himself at least $12, 625.50 over the past 10 years!!
Financial Wellness is about aligning your daily financial choices with your own personal values and priorities. As soon as you begin making excuses or comparisons, you will be more focused on what matters to your friends, relatives or peers. Decide what matters most to you and stay true to that.
Being intentional about how you allocate your precious time and money will help you achieve your goals. If you decide to ditch your car or keep it until it dies, take a part of your savings and divert it towards the most important thing on your bucket list.
At just 3% interest rate, a $100 monthly deposit over 48 months would add up to over $5,105.00!
The fun thing about saving money for yourself, rather than paying for a car that is losing value every day, is that you get excited and start to set aside even more. It can become a challenge to see how much you can save so you can do the things you love!!
P.S. My last car payment was over 7 years ago. I drive a 2005 Ford Ranger since I enjoy hiking, camping and biking. She’s on her last leg with almost 180,000 miles.