Watch Now.
Done? Read on....
The main idea of the video was an application of pay yourself first. The car is in the top two of items payed for in the American lifestyle. (house being the other of the top two)
The video has a basic plan of
- Buy a cost effective car (phase 1 car)
- Save money regularly for next car for 10 months (phase 1 bucket money)
- Sell phase 1 car & pool with phase 1 bucket money = money for phase 2 car
- Buy a better car with step 3 money (phase 2 car)
- Repeat process of steps 1-4 until car value is a reliable car of about $10K in value (phase x car)
- After step 5 put bucket money in a stable growth mutual fund
- Use a portion of the mutual fund to buy the next car after phase x car has been at the end of it's life
- Repeat step 7 every 6 years
I thought this is a great concept but, I would need to tweek it for my own life to get the most out of it.
Our family has two cars with 209000k miles on one and 230000k on the other. One rides good (Mr 230 - Green Machine) and the other is so - so (Mr 209 - Ramsey Rover). The cars are in need of replacement so we are going to utilize the above plan and tweek it to supercharge the results....
Ramsey Rover
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