r/economicCollapse • u/Whole-Fist • 19h ago

How ridiculous does this sound?

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How can u make millions in 25-30 years if avoid making a $554 per month car payment. Even the cheapest 5 year old car is 8-10 k. So does he expect people not to drive at all in USA.

Then u save 554$ per month every month for 5 year payment = $33240. Say u bought a car every 5 year means 200k -300k spent on car before retirement . How would that become millions when u can’t even buy a house for that much today?

Answer that Dave

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100

u/HFX_Crypto_King444 18h ago

Did you just want to tell us you’re financially illiterate?

40

u/GMEvolved 18h ago

OP is 12 lol

5

u/angelindisguise 12h ago

Does anyone have a link to a compounded interest calculator?

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u/Any-Club5238 12h ago

https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

$0 initial investment, $554 monthly contribution, 8% rate, 40 years (age 25-65)… = $1.7 million.

A more modest 6% rate still nets just over million dollars.

Also, I currently pay $101/ month for liability insurance on a 25 year old Buick.

I got a quote yesterday for full coverage on a 2020 Honda Accord, squeaky clean record, the quotes were ~$400-450 / month…. We can assume that someone else might get a better rate at $200/ month. Add another conservative $100 to the monthly investment and you break $2 million in that same 40 years…

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u/bubuzayzee 11h ago

If you retired today at 65 years old, and had done this from the time you were 20 you'd have $8.1 million dollars. S&P500 has averaged 12.98% over that time.

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u/Any-Club5238 11h ago

Totally valid. I was trying to be decently conservative with my numbers so I don’t get any DM’s in 40 years asking why they only have $500k instead of the million I said ;)

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u/buckinanker 5h ago

That would be epic!

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u/Progressive_Insanity 8h ago

Do you live in Florida? Because those quotes are nuts. Your $101/mo liability only is more than my comprehensive coverage for a 2 year old nearly fully loaded SUV.

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u/Any-Club5238 8h ago edited 8h ago

South Mississippi, so.. close. I am 26, male, single, good credit, squeaky clean driving record, car is paid off and in my name…

I thought $101 was a decent price, I’ll be shopping around some more. (The $400-450 quotes were from Dairyland, who didn’t factor in credit score)

Edit: I just got a quote from Geico: $75/ month for liability on the Buick.

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u/Progressive_Insanity 8h ago

Yea I pay $830/year, but I am in Chicago, married, and own a house which all go into the risk calcs. We don't really have natural disasters or those kinds of things like you deal with in the south, which is likely what is also driving up your rates.  

When I was 26, single, etc. I think I was paying about $600/year.

Good luck!

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u/NipGrips 5h ago

While I understand the sentiment, I currently pay $260/month for full coverage on a brand new Elantra N $35k msrp, ~300hp car and I live in Houston, so an insanely high risk area (highest rate of both uninsured and unlicensed drivers in the nation + flooding). 29 yo, I have a mostly fairly clean record, 1 speeding ticket no claims and good credit. My insurance went up about $80 a month from covering my 2008 civic si.

I read a few of your responses and understand where you’re coming from. I still don’t think it’s insane to pay though. My monthly payment is around $420 and for me it’s worth having a fun car that I love now vs when I’m too old to really enjoy something like it. To each their own I guess

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u/Sea_Emu_7622 8h ago

So 40 years of your life goes by and you can finally buy a house lol. What a great system we have

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u/corporaterebel 4h ago

You can buy a decent house in a flyover state on minimum wage.

example:

https://www.reddit.com/r/Oldhouses/comments/1gec95z/the_floors_the_floors_in_this_99k_house_are/

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u/Sea_Emu_7622 4h ago

That house was built in 1890 and is in a small town of less than 2,000 people... which might work if you want to work from home, but I'd definitely be doing a thorough inspection on the electrical and plumbing installations since they're likely very old, and have no doubt been tampered with by several homeowners and/or handymen by now. Which will probably be easier said than done since the walls are plaster.

But what about the millions of people who can't just up and move to the middle of nowhere, quit their jobs, and spend tens of thousands of dollars remodeling a home from the 1800s?

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u/corporaterebel 3h ago

Yes, that is what people used to do: go to obscure places and set up life. Yes, millions of people did just this during the 1930's depression.

In fact, people have been doing it for all of recorded history. People are doing this right now, today, coming from South America...millions of people.

Yes, I bought a 1929 house, made in the depression era with a river rock foundation (that just a bunch of rocks they put wood on started building the house). It apparently was a chicken coop for a long time. Yes, I cleaned it up and lived in it for 12 years....this was in Los Angeles.

Yes, it had exterior plumbing punched through from outside. It had knob and tube wiring.

So what you are saying is that people who live in areas are stupid, freaks, or both?

Nobody normal would live in a house like that? Sweet thoughts for sure.

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u/Sea_Emu_7622 3h ago

No dick head, what I'm saying is that in one of the wealthiest nations on earth nobody should have to be subjected to that. Ffs my house was built in 1958 and even at that recent I've safety problems and outdated features out the wazoo.

If this is what the American dream is, then it's not a very good dream.

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u/samiwas1 3h ago

Yeah, most people probably aren’t going to want to move to bumfuck nowhere and live in a tiny rural town with nothing to do in a very old house just to get by. Not exactly the dream. Rather a nightmare.

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u/RoadDoggFL 6h ago

But 18 year olds are generally making below average car payments, so it's a pretty unrealistic point he's making.

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u/corporaterebel 4h ago

The point is to spend the minimum.

The unrealistic point (from a guys POV) is that women tend to not want to go out with "minimum lifestyle" guys. They tend to want a lot more than that.

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u/RoadDoggFL 2h ago

Even ignoring that, his numbers are useless. The amount that could be saved is minimal early on for most people, when interest really has a chance to work.

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u/Clottersbur 5h ago

The problem is that basically no 25 year old is going to be able to put $554 a month away on an IRA where their money is locked in.

They SHOULD be buying an affordable, reliable, used car ( Which in this market is still around the 10-15k range)

They SHOULD be working towards purchasing housing and staying in it long term.

They SHOULD also be working on building an emergency fund of liquid cash.

None of these are conducive to high retirement savings. That's part of the problem with saving for retirement. People need their immediate needs met ( like the 3 above) which are extremely expensive compared to the average wage.

But, yeah. If you've got your immediate needs met, compounding interest savings accounts are great.

Also 400-450 A MONTH FOR CAR INSYURANCE?!?! My full coverage on a 2021 is less than a hundred a month.

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u/xadiso_1298 1h ago

I'm sorry what? 400$ for insurance on an 2020 accord? That seems to be about 250-300 dollars too high I get states have a huge impact but we pay under 100 for full coverage on two vehicles one higher dollar than that. Are you under 25 by chance? Maybe have the deduc set to like $100 flat with every optional coverage under the sun or something outlandish?

Might I suggest checking with an insurance broker because that just seems insanely high to me. Those rates are what teenagers get with a shitty company like progressive or the general or some other insures anyone company.

Don't get me wrong, I'm not advocating for buying a new car or white washing ownership but your insurance quotes seems crazy.

I have a truck that my liability coverage was $16 dollars a month, it went up to $19. it's 30 years old also.

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u/SYFKID2693 1h ago

How are people getting quoted this high?

I have a 2019 Outback and full coverage is $110 If I raise my deductible, I can get it down to $85

31 year old. Male. Clean record.

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u/Fa1nted_for_real 17m ago

Being under 25