How Much To Spend on a Car?

How Much To Spend on Car?

Many people don’t know that how much money to spend for buying a car? Well, wealthy people are those who spend less than 1% of their total wealth behind buying a car. This might sound crazy to you but this is true. Wealthy people never spend more than 1% of their Total wealth behind buying a car and that’s why they are wealthy.

Say for Example, if someone’s net worth is $ 4,00,000 than he should not spend more than $ 4,000 behind buying a car. Now, you will ask that, How can anyone buy a car for just $ 4,000? Well, if you can’t buy a new one than buy a 5 years old car from your money.

Now, you will say that But Most of the people are not doing this. Well, and that’s why they are not rich.

Now, you will ask that, what about those luxurious cars which everybody of us is watching in our city? Well, the owners of those cars are just the high income but low accumulator of wealth. They just look like rich and cool but in reality they are not rich.

And those who are really rich have their net worth so much high that the luxurious car they are using is just 1% of their total net worth.

Most of the High Income people buy a car that is worth of as high as 40% of their Total Net Worth. They compromise with their wealth to buy a luxurious car. And that’s why they struggle financially for the whole of their life.

Now, tell me that, How much your car worth of in comparison to your wealth?