There’s a beautiful, shiny, blue, 2006 Honda Civic coupe in my parking lot. I’ve owned it for nearly two years. The car has run perfectly – no maintenance issues or starter problems. It gets around 30+ miles per gallon – depending on my need for speed. Today, I’ve decided to sell it.
Two summers ago, I was in a different place mentally and physically. I moved for graduate school and I was a single guy looking to impress. The things we purchase, wear, and surround ourselves are often a display of our wealth – or lack thereof. I wanted a nice looking car (read: expensive-looking) that would last a long time and wouldn’t take much upkeep. I didn’t actually have the money, but the convenient credit was all too easy to acquire. It’s only now that I’m realizing my grave mistake.
I’ve paid $196 a month on my car loan for nearly 24 months. I pay nearly $40 per month in insurance. I pay about $30 per month in gas. And then… There’s depreciation. Conservatively, it costs me about $300 per month to own this luxury (after registration and taxes). My debt clock reads $37,753 – time to cut out the extras.
When I stepped back and examined my needs and wants, I realized that this expensive vehicle was the elephant in the room – the biggest extra I own. Over this summer I hope to sell the car, buy a cheap (2002 and earlier) Toyota Camry or Corolla and a bike. I’ll use the proceeds of the sale to pay off the rest of my $7,500+ left on the auto loan and take the difference to buy a vehicle in cash – no loans or credit needed.
I can’t keep kidding myself… I can’t keep saying that I’m trying to eliminate my debt, while keeping the largest liability in that parking lot. It’s time to make some sacrifices for my future.
Reach into your wallet, rubberband, or purse – wherever you stash the cash. What’s in your wallet? Personally, as a self-described “minimalist,” I have five cards wrapped in a rubberband – that’s it. No cash. No frequent shopper punchcards. Nothing extraneous.
