Wealthy Americans believe that financial independence is more important than displaying high social status.

The author of “The Millionaire Next Door” discovered that lower income millionaires will buy a used car which is much cheaper than owning a new car. Things such as clothes, jewelries, hand phones, tablets, and so does car are just materials that will only depreciate in value.  A $30k car will depreciate to $10k within 10 years or maybe earlier than that.

Thus, buying a car is just like investing in a business that looses annually. The more you put into it, the more you lose. It is thus advisable to spend less money on cars.

Millionaires trust that achieving financial independence is more important than possessing a luxury car. Frugality is the key to financial independence. Bear in mind, some of the people who possess jewelries, luxury cars, branded stuffs, having swimming pool in their house, are not really wealthy!

Once there was a millionaire who told his son:” My parents are thrifty. They treasure the value of every single dollar even though they are just farmers. My father told me seedlings are money. You can use that seed to feed yourself or feed chicken but you will never want to waste a seed when the seed can grow and become a 10 foot maize.”

Income is NOT equivalent to wealth.

How can we become rich? Increase our income? In fact most of us can’t increase our salary by 50% and above within a short period. Any alternatives? Yes there is, be thrifty, spend your money wisely, and invest some of your savings to earn a higher return.

It is time to change your mindset. Car is a liability, not an asset!