Thinking
Differently
What
if we got really radical, as scripture teaches, and came up with a
plan to make our money work for us?
Let's think out of the box for a minute, and look at an example of
how this might work. Say you want a new truck with a payment of $475.
If you pay your self that same payment you will have $4,750 in ten
months. If you add that to the $2,500 your old truck is worth you can
pay $7,250 cash. I bought my last pickup with 80,000 miles for cash
for under $5000, so I know this can work.
If
you kept going at this rate you'd have another $4,750 saved in 10
months. Chances are, less than a year later you can sell your current
truck for about what you paid for it and if you add the $7,250 to the
$4,750 you saved, you can step up to a $12,000 truck.
Now
let's go crazy with this. For 20 months you have been paying yourself
a car payment. You don't owe the bank anything, and you are driving a
great $12,000 truck. Remember, you were ready to sign up for 6 years
of a $475 car payment.
So
just for fun, let's carry out our new plan for the full 6 years,
paying ourselves a car payment and investing it. Our $12,000
car/truck has just about run its course and we need to upgrade. No
problem, you have a mutual fund for purchasing that next car. At
the stock market average of 12%, you'd have $32,000 sitting in that
fund.
Next lesson...Drive Free Cars.
----------------------
Brian
and Lisa Petersen, lead the Financial Peace University course at
Autumn Ridge Church. Many concepts like the one discussed in this
article are taught in FPU. Brian and Lisa want to help you be
successful with “Paying Cash for Your Car”, and welcome your
questions and dialog. They can be reached at
brian@vegetablefreak.com.
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