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>The average working class American is financing their car. The average car payment is now an insane $500 per month. Over the average working career, that type
by learc83 9y ago
>The average working class American is financing their car. The average car payment is now an insane $500 per month. Over the average working career, that type of monthly payment represents a multi million dollar net worth at retirement.
This is completely wrong.
1. $500 is the average, averages are easily distorted by outliers. Most people who are worried about shitty jobs don't have $500 a month car payments.
2. Not spending $500 a month on a car doesn't mean you get $500 to invest. Most people need to spend > $0 on transportation.
3. $500 a month doesn't get you a multi-million dollar net worth. $500 a month at a realistic 7% gets you $1.2 million in 40 years. A more realistic $300 a month (from financing a cheaper car) gets you $700k.