Andrew Postell explains what to do after paying off your car. Keep saving half your old payment: if it was $500/month, save $250. In five years that's $15,000, plus an $8,000 trade-in gets you a $22,000 vehicle with a $250/month payment. Maintain your car to preserve its value.
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Hey now, Drew 2 time again. I'm Andrew Postell. We're gonna talk about some financial stuff with my 10-year-old paid-off truck. Isn't this truck amazing? Not really, right? But it's a utilitarian truck. It has usefulness to me and it's paid off. It's been paid off for 5 years for me too. We've talked about this before. I've been just bragging about something that's boring— paid-off vehicles. These are great for us. Now there's a trap here though. Once I pay my vehicle off, I've got all this I have all this extra money. What should I do with it? I should probably go spend it, right? Wrong. I want you to have a goal, paying off your vehicle, buying something that's useful for you. And once you have it paid off, I want you to feel like or save like you still have your vehicle payment. Let's assume for a minute that my truck payment was $500 a month. Save half of it. So for $250, put it into a savings account so that it can build over time. It's been paid off for 5 years, right? That'd be $15,000 I would have to apply for my next vehicle. Because guess what will happen? I'll need a new vehicle at some point. I will need one. I'll also get to trade in my vehicle if I take care of it, wash it, change the oil, keep it all maintained. On this vehicle, I might be able to get $8,000 if I trade it in. So $8,000 plus the $15,000 is $22,000. If I were to do that and go buy a brand new truck today, My payment would be about $250 a month. See where I'm going with this? I want to plan my budget out when I have my vehicle paid off. Hey, we talk about finances in 2 minutes or less here. Thanks for watching today's Drew 2. I'm Andrew Postell. We'll talk with you soon.
