by Forget about brand new cars—driving an old clunker can be a sign of true financial freedom! In this post, we’re going to explore why driving an older car can lead to greater financial stability, and what financial freedom really means.
Say Goodbye to Car Payments
Driving a 2007 Camry has allowed us to experience financial freedom that most people only dream of. By sticking with our trusty steed, we’ve been able to save a significant amount of money over the years. This has given us peace of mind and the ability to invest in other areas of our lives.
Our goal is to always keep our cars for longer than 10 years and this allows us to go on for years without a car payment. By not having a car payment, we’ve been able to put that money towards savings and investments. This has allowed us to watch our money grow and compound over time, giving us additional financial security. In fact, if we had invested $500 monthly car payments for ten years at a 7% annual return, we would have $85,525.87 to put towards a new car or any other financial goal.
And let’s not forget the expenses and headaches that come with buying a new car. We’ve been able to avoid the costs of down payments, trade-ins, markups, and financing fees. Driving an older car has allowed us to live a more stress-free life and focus on things that matter.
Time is More Valuable than Possessions
Many people who drive older cars value their time more than a car that takes them to a job. In our case, we were able to leave our jobs and spend more time with our children. We take family trips, create memories, and enjoy life without financial stress.
We prioritize experiences over material possessions. We believe that time spent together and creating memories is more valuable than constantly upgrading our car. This is reflected in our spending habits, as we prefer to spend our money on traveling, trying new activities, and eating at unique restaurants. This lifestyle helps us build stronger relationships and memories that will last a lifetime.
By driving a 2007 Camry, we have been able to allocate our finances towards things that are truly important to us. We don’t feel like we’re missing out on anything, because we’re able to live the life that we want and make the most of every day.
Financial Freedom is More Than Just Cars
Financial freedom is about having the ability to live the life you want without financial worries. It’s about having the freedom to make choices about how you spend your time and money. The FIRE (Financial Independence Retire Early) movement emphasizes saving and investing a significant portion of one’s income to reach financial independence, where passive income covers living expenses, allowing people to leave the 9-5 and pursue other interests.
Financial freedom also provides peace of mind, eliminating stress from worrying about unexpected expenses. It allows for flexibility to take advantage of opportunities, whether it be starting a business, traveling, or pursuing a passion. By taking control of their finances, individuals can create a life that is fulfilling and meaningful, without financial constraints.
Missing the Point: Freedom is Key
If you believe that financial freedom means driving a fancy car, you’re missing the point. Financial freedom is about having control over your own life and the ability to prioritize your time and money towards what truly matters to you, whether that’s traveling the world, starting your own business, or simply spending more time with loved ones. The key is to have the option to make these choices, without having to worry about money or financial stability. A life of purpose, not just the acquisition of material goods, is what financial freedom is all about.
Final thoughts
In conclusion, financial freedom means having the power to make choices about time and money without stress. So, don’t judge someone driving an old car, they might be living their best life with financial freedom! Keep in mind that achieving financial freedom is a journey, not a destination. Building wealth takes patience, time, and effort. Every small step towards it matters and adds up.
Instead of focusing on material possessions, aim for balance and happiness in life. And remember, the journey towards financial freedom is never over, so keep moving in the right direction. Who knows, you might just find yourself driving a Ferrari…made of recycled materials, of course!
I love this. I drove an old Volvo when I was in high school and they stopped making that particular model in ’93, BUT there are still a bunch of them on the road. They just run forever. I’m kicking myself for not keeping it, but maybe I’ll just have to buy another one.