so what's the number one wealth killer that no
one is talking about I've just bought myself a brand new car so I got myself a mercedesbenz
GLC coup uh the 2024 one 220d so did I make a financial mistake yes I did I should know better
as a charted accountant by profession I know this things and then also when you look into the
spending household spending of many countries if you look into the US the graph shows that
number one spending for most people is housing and then number two is transport and also when
you look into the UK number one is housing and then people spend number two on transport and then
there's food entertainment and all sorts of things so also here in South Africa I remember before we
moved into this particular house uh our biggest expenditure had become the car because as a result
of this car it is a BMW a 420i because the house that we were staying in was even much cheaper but
now we've moved into an even more expensive house now making the house more expensive compared to
to the cars but many other people in South Africa have cheaper housing and then their transport is
more expensive because of the cars so let me give you my figures to prove why a car is a wealth
Destroyer so in terms of the car that I bought it's a 48 months l so this particular car my car
installment per month is around uh 23,000 rents and then converted to US doll it's around $1,280
us and then they still the insurance part of it that is around 2,000 rent so uh in US Dollars it's
uh around um 111 dollar and then there is your gas or your fuel so I can estimate that to be around
around maybe $180 I don't drive as much cuz I'm working from home and then there is your cost of
the tracker that's like uh a bit cheap I can say that's around like $1 $10 so over a 48 months the
amount that I would have spent towards this car that I would have paid towards this car only on
the installment is going to be around 1.2 million converted to US dollar that's around 66,6 s us
so you can just imagine after 4 years I would have paid this particular amount and then now
I give them back the car imagine if I do take this particular amount and I say that I'm buying
property every single month I will be paying um 1,280 towards a property and you know that with
a property majority of the amount is going to be paid by by the person who will be renting it
will be paid paid by the tenant and then come four years down the line I will still have a property
unlike with the car come four years down the line I won't have a car and guess what obviously I will
want another car I will buy a new car while with the property there will be someone who is paying
for it and the property does retain value while on the other hand your car depreciates all the
time the moment it comes out of the dealership it dep appreciate or another alternative I could
have invested uh this money into the unit trust every single month I put this money into the unit
trust and then it's growing or it's accumulating interest or I put it somewhere where it is uh
in carrying or getting more interest by the time it's four years time the money would have
retained its value plus it would have also made me some income or some form of Interest it would
have grown if I had maybe been putting it towards the share so you can just see how a car destroys
the world but my view is this when it does come to cars and housing obviously the same way I would
not want to stay in h a house even if it can be cheap I would still want a house that meet certain
requirements I would still want a house that I can be comfortable in so it also it's also the same
with a car when you are driving on the road you want to drive something that comes with that
particular kind of comfort particular kind of luxury but it's important to be something that
is within your means something that you can be affording because you know that interest sometimes
they can go up and if your money the money that you are getting is fixed while the interest is
going up it means over time you might not even be able to afford the car that is why my view in
life is that I need to be making more money I need to be making more money without necessarily always
increasing my expenses that's why one of the goals for this year as well is to get um more investment
properties as well and also to be investing more so as as much as I have bought a wealth Destroyer
I will also be purchasing something that is going to be building towards my wealth but these things
can only be achieved when one is making more money so if you are getting a fixed salary also just
look at what other things you can be doing what other side hustles you can be doing that can be
increasing now your money so that you can be a able to build your wealth so that you can be able
to build the system because it can be difficult to build the system if you don't know how to make
more money because the car prices they just keep going up every single year and even the secondhand
Market I feel like it's it's gone up even now it's even become so difficult now to afford a car I've
said this before the first car that I bought was um a polo in 2012 and I still have this particular
car for me I felt like the polo that I've bought was not a liability it feels like an asset so
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Bell stay blessed and see you next time