money money money 828b cars: how much to spend, how much to borrow + some good rules of thumb
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Jul 16, 2025 Discover the pitfalls of overspending on cars and learn Glen's money formula for financial health. Explore the balance between needs and wants in car purchases, emphasizing responsible investment. Dive into the pros and cons of new versus used vehicles, along with practical strategies for financing. Unravel the differences between car loans and personal loans, and gain insights on negotiating better deals. Plus, hear real listener scenarios to help you navigate the complex world of car buying!
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Overspending on Cars Restricts Wealth
- Spending too much on cars and housing inhibits investing for the future.
- People who saved for their first home or investments often avoided car loans and owned cars outright.
Golden Rule: 50% Income Limit
- Limit all vehicles and motor assets to 50% of your gross household income.
- Use this golden rule as a guardrail to avoid overspending on depreciating assets.
Know Your Buying Mindset
- Determine if you're a spender or saver before buying a car to set guardrails.
- Clarify how long you'll need the car and whether it's a need or a want.