Car payments are one of the WORST “investments” for young people 🚫🚗

Mike Ruscica

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12d • 💡 Retirement Investing Basics

Everybody gets pushed into the same script:“Get a job → finance a shiny car → brag about the payment.”

Here’s why that payment is quietly robbing your future:

1️⃣ Your car is a liability, not an asset

It doesn’t pay you. It doesn’t send you a check. It just sucks money out of your account every month.

2️⃣ It sits doing NOTHING most of the time

Your “investment” is parked in a driveway or parking lot 90% of the day. You’re paying interest… on something that’s literally sitting there.

3️⃣ Depreciation is brutal

The second you drive it off the lot, it drops in value. 3–5 years go by, it’s worth half… but you’ve paid a TON in payments, interest, insurance, taxes, repairs.

4️⃣ That payment could be buying freedom$400–$800/month into cash-flowing assets over your 20s and 30s could fund your retirement. Instead, most people light that money on fire to “look good” for strangers.

5️⃣ Banks love your car payment. Your future self doesn’t.The system is built so you stay on the hamster wheel: new car, new payment, forever. That’s not wealth. That’s a trap.

🔁 The smarter play:

Drive something reliable and paid off
Keep your monthly nut LOW
Use the money you don’t send to the bank to buy assets that send you money

If you’re young, the goal isn’t a “sick car”…It’s a future where your assets pay for any car you want in cash.

👉 Question for you:What would happen to your finances over the next 5–10 years if you took your car payment and redirected it into cash-flowing investments instead

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