Avoiding One Expense = Millions : the $78 Truck
Is it possible that avoiding one high cost can fund a HUGE portion of our retirement? Yes, playing it smart, and saving money in ONE area of life could easily change the terms of our financial existence: it could make or break our future.
Let’s cover an EXTREME example. This example should test the mental bounds of most Americans. It’s an example of a person who has ignored everything about the social brainwashing we receive, incidentally. The man we are going to talk about has gone where few will dare: for an entire lifetime he drove a $78 truck, and he never bought another car again.
Basically, this guy makes the possibility for Early Retirement look easy, and if you turn your head just right, after you hear this story, you’ll start to see why this guy is way cooler than an Armani suit and shiny Ferarri…
We’ll give you the story here in an abreviated punch, you can catch the original story here. (CHANNEL 5 KSDK / Gannet Company online)
A man bought a truck for $78 from someone he knew.
He drove that truck for a really long time,
Everyone kept saying, maybe you could get a new car now?
He said, “No, this one’s just fine.”
Over decade’s he’s put $2,000 into the truck for repairs, not bad!
The truck still drives, so he keeps driving it.
Does it look good? Many people would say no.
To Great Savers, this man is a genius,
with guts constituted of the sinews of wisdom and common sense,
and a will perfectly crafted for an Early Retirement.
YES, humans seem to like modern things, like the internet, decent homes, and clothes that are not make of raw fur. Yet, the long list of things we acquire translates to yet another decade of FORCED FUTURE LABOR! The cost of things also translate to a deep thinning of our inheritance given from our young selves, to our older selves.
The “Money Saver Ideas” category in the sidebar of this website highlights some outstanding savings examples. We’ve even covered them in batches to display for everyone how derailing just a few costs can translate to future loss of opportunity costs that literally… LITERALLY… translate to millions of dollars.
How much does the man with the $78 dollar truck save???
Well, if we consider the lifetime cost of cars, at the smartest level, of 4-cylinder engine, at an average of about 5 cars in a lifespan, this is how much he saved: (We’re pulling the projected lifetime value loss from car prices from our article “CARS: The Real Cost – PART 1 : PRICE” )
QUALITY USED CAR: $30,000-$40,000 (with some repairs included in this price)
NEW ECONOMY CAR: $657,661
NEW MID-LEVEL CAR: $1,062,381
These prices assume that the QUALITY USED CAR is a necessary expense, so for that entry, no opportunity costs losses are given. But, Let’s factor in the purchase made by the man with the $78 truck…
He would be saving roughly $35,000 over a person who bought 5 cheap quality cars at $4,000 apiece.
That $35,000 saved, divided by 80 years = $438 per year,
if invested all along at compound interest it would equal $810,911 in 80 years.
So that’s it, this could save up to 800 GRAND by driving this truck around. Basically, he could get paid $800,000 to drive that truck. Everyone else is paying many millions of dollars to drive their fancy cars. They were taken hook, line, and sinker over a shiny piece of metal and plastic!
I don’t think you could find anyone who would sign up to pay $1 Million dollars to have a new used car, instead of their old car. It’s way easier to just decide that shiny cars don’t mean shit. Yet, everyone is doing it, and that’s because of the brainwashing that has us wanting something so badly, that we ignore all sense of logic. No one like to use that term, brainwashing, but that’s the fact, Jack.
Modern life has come to be filled with modern expectations. Living young and poor, and bootstrapping it, can appear to take it’s toll, and when our paychecks get upgraded, our lifestyles seem to unbutton pretty fast, and eventually most people become dirt poor all over again, only they now have a bigger house, and shinier cars. Brimming with debt and working to pay bank interest becomes the game of life.
A person can easily learn to spend poorly… because they never ‘learn’ to spend. They just spend…
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