Vincent Chan reveals the highest wealth killer: “It is very normal”

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Good money habits can help you build wealth, but some bad habits can hinder your progress. While it is easy to think about bad investments and impulsive spending as two factors who can kill wealth, the financial teacher Vincent Chan Reveal The fighter of the highest wealth This affects most people.

“It is very natural,” Chan said, when discussing this killer.

Chan talks about taking out a car loan to buy your car. Provides tangible numbers and examples that show the amount of money that ends due to these loans. These are some of the reasons why the car loan makes a bad idea.

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Chan begins the video by noting that one of his friends got a $ 55,000 car loan and ended up paying $ 70,000 to the car. The loan was for 5 years, and now that the loan has been paid, the value of the car is only $ 25,000.

It is a loss of $ 45,000 will get worse over time. The car model will continue to get old, and it will need maintenance and repairs along the way. Many people fall into the trap of buying a new car with a loan, but for many people, it is also necessary evil.

Not everyone has $ 55,000 is available to buy a new car, and car prices may continue to rise due to inflation and tariffs. However, the car does not benefit from inflation. Although your home is likely to gain value over time, your car is actively losing value. A decrease in the most severe prices occurs at the moment your new car comes out of the agency.

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Chan also states that the average payment of the car for a new car reaches $ 742 per month. This is a large percentage of the salaries of most people since The real medium family entered It was $ 80,610 in 2023, according to the American Statistical Office.

This reaches 6717.50 dollars per month. The average payment of the car of $ 742 per month constitute 11 % of the average American family income. The average car loan does not represent this full cost of car ownership. You should also pay for insurance, gas, maintenance, repairs and other expenses.