Your Tesla does not symbolize wealth.

If anything, it makes you wonder.

I laugh when people try to impress me with their Tesla or more luxurious cars and think, “Does your financial portfolio look as good as your car?”.

I realized early in life that cars don’t equate to wealth, if at all, they are liabilities because they usually don’t get paid off.

So what is wealth?

It is different for everyone.

But the following definition can be given: how much time you can afford to spend without physical effort. In other words, how long do you have money? If you lose your main income or stop working, how long can you comfortably exist without work?

A great many people will not be able to answer this question positively because losing a job or income will maximize their financial anxiety because they have too many financial ties (e.g., student loans, car loans, personal loans, credit cards, mortgages, etc.).

An auto loan is a prison of sorts.

According to Bankrate, the average monthly payment for a new car is $729. The average monthly payment for used cars is $528. 40.72% of cars financed in the second quarter of 2023 were new.

If you have an auto loan, you will likely be paying between $500 and $1,000 each month. You have to bring in something to cover those costs.

Years ago, I quit my job without having another one. I was not stressed in the slightest. My partner was more stressed than I was, but I didn’t understand why (at least I didn’t then, but I do now, and that’s a topic for another article).

Here’s why I wasn’t stressed:

I had an emergency fund.

I had no debt – that’s right, I had no car debt.

And I still had no problem paying my share of housing costs.

I was in the gold reserve.

Cars are major status symbols.

Since cars have become status symbols, too many people are willing to sacrifice their financial well-being to drive “nice.”

Forgetting about their financial future, people care more about how they look in front of strangers because it makes them feel better about themselves – even if their existence depends on what they have saved financially.

People are more likely to pay a car bill than they are to invest in a car, which is incredible.

Metal is what matters most to many people, not financial freedom.

What is more important than the car you drive.

Questions you should always think about if you want to deviate from the broke norms of society:

Do you have an emergency fund and how many months can you survive without a job?

How much money have you put into investments and are you reaching your goals?

How much debt do you have and what is your plan to pay it off?

How long can you survive without a job?

Before buying a car.

Teslas are cool. Who knows, maybe I’ll buy one for myself.

But I will always negotiate my terms before buying a car:

I will never sacrifice my financial situation or wealth for a car.

I will always make sure I can buy a car with cash – even if I get a car loan. There is no reason to go into debt for a piece of metal.

I will never buy a car just because it is popular or because it is a must buy. I have to really love and purchase a car because I genuinely want it. It’s not a prize to brag about, it’s for me. I will never go into debt to buy a new car again.

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This article is for informational purposes only. It should not be considered financial or legal advice. Not all information will be accurate. Consult a financial professional before making important financial decisions.

Read more / Original news source: https://manipurhub.com/your-tesla-does-not-symbolize-wealth-145/