Let's talk about Gen Z, cars, savings, and advice.... - Belle of the Ranch

[TexasTowelie]

Well, howdy there Internet people. It's Belle again. So, today we're going to talk about Gen Z, cars, savings, and advice.

We're just diving straight into the message on this one. "Miss Belle, I have a money question that somebody should probably ask their parents, but asking my parents about how to handle money is like asking Kristi Noem how to take care of your pet. I feel bad because you may have already covered this and I don't know because I skip most of your economic videos. Sorry, I'm 22 and most of that is for people who have money. So, here's my question. I have paid off my first car and she's a good car. But I told myself when I paid it off, I'd get the car I actually wanted because I would have earned it. I went to the dealer and the car payment on what I want is twice what I was paying. Prices went up and what I make didn't at all. I know I can't afford it. I can still afford $289 per month. My question is, what the actual f am I supposed to do? I can't even upgrade my car after 4 years of working. Getting a house or even moving out of this effing apartment seems impossible. I'm doing what I'm supposed to do. I live within my means and I still can't get ahead. How do I go from here to where I want to be?”

Okay, first you're doing good. You are in fact doing it right. Your actions are fine, but you have to adjust your thinking a little bit.

First, you said, "I'd get the car I actually wanted because I would have earned it." Never ever equate the amount of money you make or the standard of living you have with what you've earned again. I know people who work harder in a day than some CEOs will ever work their entire life who have low standards of living. Our system is not designed to give working class people what they've earned. So get that idea out of your head.

Second, you said I have paid off my first car and she's a good car. I'm assuming that means no mechanical issues. drive that good car until the wheels fall off and the engine drops out, which is probably advice you've gotten. But here's the part they might have left out that will help change your economic position. Stop buying expensive coffee and little things that give you enjoyment. No, of course not. That's not real advice. The real advice is to keep making your $289 payment to yourself. You can afford it. You've been paying it. Take that money and stick it in a savings account. In 2 months, you'll have more available for an emergency than a third of the US. In 6 months, you'll have more than half. You can use this money for real emergencies or car repairs, but nothing else. Let it grow. After a year, you'll have about $3500. Maybe throw some in a CD to get a higher interest rate.

My Jeep is your age. She's a good car, too. What I'm saying is you're 22 and you have the ability to start building meaningful savings. you're doing good. Your goals will change as you get older. If you still want the new car, those savings can be a down payment to get you a lower monthly payment later. But that new car may not be in line with your goals later. Thousands in savings will always be in line with your goals.

Anyway, it's just a thought. Y'all have a good day.