To buy a car or not to buy a car?

 

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When I started off in my career I never asked myself this question since I lacked financial literacy. So in just 3 short years I bought myself a car and then another one and another one. And oh yes, I bought all these cars on loan. I envied anybody who bought a car after me, since theirs would be a slightly newer model than mine. Now that I am 43 years old, this advice will go to anyone who is in his/her 20s or 30s and mostly starting up in their career.

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Don't think of buying a car before you have invested in two to three income streams. A car is a liability: It will be taking money away from you. For starters you have to fuel it. Then there is insurance and not to forget the maintenance and repairs. And also bear in mind that in every year it will be losing its value in what is known as depreciation. And did I mention there will be interest on the loan  you took to buy the car?

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Though I started my invested journey a bit late, nevertheless, I have gone on to invest in a number of prime properties and businesses. I have learnt many things the hard way. My heart sinks when I see newly employed young people making exactly the same mistakes I made 2 decades ago. Because of these mistakes, most of my former colleagues are still in the rat race.