Here is the link to the video I mentioned. ruclips.net/video/YYFj09myuoc/видео.html "TO PAY OFF DEBT Avoid these 8 mistakes to GET out of DEBT FAST" I realized I changed the thumbnail after creating this one.
Always keep something in savings. When I was getting out of debt I keep $2k in savings which is paper thin but that was my motivation to get it done as fast as I could. Plus that was enough to cover the things that was most probable. It worked like a champ and get out debt fast. Now I can save more than ever. Do it!
Bro I did this with my car then my student loan finally I paid my first house off. My job Give us 44 hrs a week in OT with over night extra pay and every Sunday a paid holiday. I took a 3 year oath to pay my first house off in 3 year with every December I paid 30k towards principal. Meaning I paid off a 140k house off in 3 years. Now I’m working towards my 2nd house with the first house as a rent house going for 1800 a month.
Details please. You took the overtime and saved 30 k and then paid in December? If so how did you skip mortgage payments each month? Please explain I want to do similar within 5 tears for student loan. Thanks
I'm 50 years old. I had to buy a car after many years with no car payment. My new car loan scared me to death!!!! I was literally depressed over my decision. HOWEVER, the information in this video just changed my life substantially!!!! THANK YOU FOR YOUR TIME SHARING THIS!!!!
that’s literally me right now. I’m depressed af about the purchase I just made. I haven’t even enjoy the car I purchased because of the payments. Time to see how diamond can save me 💴! O
Sometimes how this world works really frustrates me. The fact that we all have similar situations like this is so sad. And it sucks that all these big companies just want to make money and don’t care about who they’re screwing over. They just try to pull a fast one on you and get their money. I literally bought a car yesterday. MY FIRST CAR! I saved and saved. I was tired of having to ask people for rides, and using other peoples cars. After about 2 weeks of looking at cars, trying to find something within my budget, I was tired. I just wanted a car. So I bought the last one I saw. Technically it’s within my budget but it’s at the top of my budget and the interest is high. I feel like I can’t really enjoy the car because I’m thinking about that interest and the amount of time I have the car for. But knowing that there are people like me out there, with the same situation, who have come out on the other side is such a good feeling. It gives me a peace of mind and makes me feel less scared. I know I’m not alone in this. We got this this guys. Thank you diamond for your helpful and inspiring video!
Debt is emotional. Paid my truck off last year 40 months. That's my first and last car payment. Paid my house off in 2016. Building a emergency cash fund of 20k to 24k by end of year. Household income is less than 50k.
I watched this video a ways back while in the gym after financing my 2010 Mazda 3 for $7900. This video helped me knock out a 3 year payment in about a year and a half. The numbers seem small but Im now 21 years old and this was my first vehicle Ive ever financed. Thanks so much for the inspiration!
This video just popped up on my feed. My daughter had to buy a car hers just gave out. She was’t smart and bought what she wanted, instead of what she could afford. I’ll be sharing this video when I visit her next week. I think your honesty in showing your personal payment information was what I found so impactful. I’m retired (59), own my home (on an island community), and car, with only $1600 in bills monthly. I know that reading some of the comments, that your honesty has helped a lot of younger people see the “light”. I’m just getting tired of the , “Hey mom, can I borrow 5k, to fix a problem that they should’ve have or need to. They don’t want to listen to me, I hope they’ll listen to you. Have a wonderful day.
@@DiamondEdwards the message is things that don’t hold no value. They give a loan quicker for something that holds no value. than things that gain value. You wanna buy a car no problem. You wanna buy land more red tape. Another part of slavery you probably won’t understand.
Henry Martinez We live and learn! Glad you can get out of the deal and move forward. I think this video may help you out too Paying Off Car Loan Early | Principal vs Extra Payment Explained ruclips.net/video/JLARGIGlOYM/видео.html Thanks for supporting my channel.
I just paid off my car last year, and it is prolly one of the biggest steps of financial freedom I have ever had in my life. It is such a relief.. Freedom, less stress💜
Same here! Up until the last five months I’ve always had car payments and new cars every four years. I decided to keep my current car and pay it off! I’m definitely enjoying not having any car payments!
I really appreciate that you're so honest, you made mistakes and you own it. I grew up really poor so getting into ANY debt is terrifying and my family looks down on me. your advice was really great
Thank you. It bothers me when people talk down to other people, trying to make themselves look better. When you look at the data, it's clear that people are lying and most are not doing as well as they want to you believe. Thanks for being part of the community. This is a place to learn and grew together!
Just focus, if you have a 9 to 5, get a part time job as well and just start knocking out that debt. Don't buy stuff you don't need and invest your money!
That’s what I been doing so I could save for a better new Car or truck just got my into a trade school & after that & get a good Job I will buy be able to buy a good car or truck
I thank you so much for this video. I have been trying to pay off my car for the longest. No one told me to put extra money towards the principle. I have just been paying an extra car payment. Thank you. Thank you from the bottom of my heart. I need it to hear all this.
I paid mine off quick too. I hate owing ppl money, and my car was the only debt I hate. So, I doubled or tripled my payments every month. I avoid paying all that extra interest like you said. I've basically been riding for free ever since. It feels great knowing I have ZERO debt.
Debt free is the way! Better than being debt free is the mindset shift that occurred during my journey. My truck is now 5 years old and I have no plans to replace it anything soon and when I do, I will pay cash which I can only do because of properly planning.
@@DiamondEdwards Exactly! My car is 13 yrs old. It still looks & rides good. I chuckle at my coworkers that are constantly leasing cars for 1200+ a month. It's such a waste of money imo.
Sounds like a great plan. In order for this plan to really work, you have to basically NOT buy anything else until the current debts are payed off. That is the true grind. This is where most people fail to get out of debt.
Please do! It's a journey but it's the journey that will prevent you from signing up for this. "bad anxiety" next time. What kept me going was thinking about what I was going to do with that money once I had no payments.
Me too. I jus recently got myself my dream car & man i couldnt sleep. Had bad buyer's anxiety. Im getting over it slowly, but knowing what to do will put the mind & heart at ease. Plus knowing that payments are only temporary tells me that feeling is temporary as well. Im currently $26k , 72 months, 2.99 APR. After watching this, it helped me clear my concerns & parts of my buyer's remorse anxiety. I got a paper calendar for 2021 scribbling plans to keep myself focus on paying off debt.
YES SIR! Debt really sucks. Seeing that interest charges on statements really killed me. Really made me think why I was so into purchasing things for instant gratification. Costs me so much more than it's worth. I also used debt snowball method. Felt so good not having to worry about paying somebody but myself. Making things short. I was able to close on a house. Building assets in stocks. That's a different subject. Anyways, very happy for you guys to get rid of debt. Freedom feels so good! Great video~
CONGRATULATIONS on all level! The other side of debt is so freeing. It's hard to put into word the feeling. Having money giving options. Options reduces stress and that lead to a happier life. Next month will make two years since becoming debt free and I've been invest all that money plus some and I could not be happier with the growth. "Off the Charts"! Makes me think what was I thinking back then. Investing is where want to take the channel but felt I needed to start with the foundation! To often we try and skip a step only to fall on our face! Stay focus and keep up the good work!
@@terrellgaines88 Paper has been stacking brother. I honestly dont know the next best move to make. I feel like I've stacked and dont have anything to show for it. When you dont have paper you want to buy all these things you dont really need. When you have the paper...you dont want to buy much of anything because you cant come to your sense about forking all that paper over.
You’re absolutely correct!! I’m a go getter and my spouse isn’t and it’s harder TRUST ME.!! He’s a I’ll use everyone else and don’t wanna go get his own smh
I honestly made that same mistake and felt so dumb afterwards. On only paying the payment and thinking it was paying it off faster. Now I understand how the principle payments work and it’s such a relief. Thank you for this insight.
This is the first video I’ve watched where the scenario ends with keeping that nice car you bought. I feel like having a partner that was committed to the financial freedom of both parties was a tremendous advantage.
Great video especially like the part about principal payments because I definitely had to learn the hard way how the bank doesn’t explicitly show that the extra payment will just be added to the next month. One thing I noticed about becoming an adult is that you really have to read the fine print and ask the right questions about things because businesses will try to get over on you 🤦🏿♂️
Me too but I'm not sure if I would have listened though. I made a lot mistakes myself but now I realize it was due to a flawed view of success. This view was developed in my youth and encouraged by my environment, teachers and associates. Once I decided that the message I received was wrong and I needed to redefine success, EVERYTHING CHANGED!
My Brother, you broke this subject down so well, I am walking around with a blessing of knowledge that I will definitely applying to my debt. Thank you, thank you and thank you again for sharing. Informative and funny.
I was just researching today what to do with my car note. Even phoned the the finance agency. Then I saw this video. My answer is here. Thanks guy. I'm going to hit principal only.
The advice about making principal only payments was absolute game for me. I made a decision in panic after totaling my previous car and am regretting it so bad! I planned on paying 500 more per month but didn’t realize that I should put it toward the principal. THANKS SO MUCH!
I agree! But because I was already in debt, not saving enough for retirement, and blind broke, I neither deserved nor earned that vehicle. I was thinking short term not long term and setting myself up to be old, broke and struggling. Not good but I turned it around. FYI, Blind broke is someone who is broke but can't see it because they are blinded by good cash flow. I just make that up! lol
@@DiamondEdwards so at what point do you deserve something that you work hard for?? I’m putting money into 401k, savings, & staying on a budget I don’t have any real debt other than student loans. Which is no more than $10,000...
@@MRiGOin23 for me the answer is when I have enough cash that I can either spent it, give it or burn it without much thought. If I deserve something it means I’ve been planning for it and can write a check.
Recently got a car. First payment coming up. Wanna pay it off asap. I've heard of paying on principal before, such as on homes. Will ABSOLUTELY be applying this toward my car payments! Now THIS I understand! So glad I watched this!! A million thank yous, Diamond!!
I just bought a new new because I had to convince myself I deserved it too after keeping my other car for 10 years. I am going to use this method. I actually used this method in my early twenties when I bought my first car. I actually had a great salesmen back then that told me about interest vs principal and it made a lot of sense.. It does work and necessary to pay off debt. Thank you. Great video.
Thank you for this my car broke down a year ago and I had bad credit so I got a car with 17% interest rate over the last year since I got sober I've payed off all my debt which was about 17k alone so now I have no debt besides my car I'm gonna start doing the principal only payment like you said I still owe 19k on the car but I can happily say I've raised my credit score from 480-680 and it all started with going sober 😃
OMG.. u r gr8... I have had enormous debt before... paid it off. Still have debt... & retired.But never knew I could principal only. Thank u thank u...
Got it.. Make extra income and apply only to the principal!!! Going to pull out the paperwork and review these numbers... Im tired of seeing our numbers move like a sloth!!! Definitely going to apply this method to out debt free journey. Thank you 😊.
I did the debt snow ball. Same scenario. Car is the last thing and after lifestyle cuts 2400 extra a month thanks for the letting me know it’s just principle
Thank you so much for giving this free advice. A lot of people keep or charge money for info like this. BTW, I paid mine off early by doing this very tip so I encourage everyone to listen to what your saying. GOD bless you!
When we were raising our now-grown kids, we had a lot of debt. I decided to make extra payments to the item that had the lowest balance because, to me, I knew that would lift my spirits with faster progress. However, the "experts" at the time said this was stupid and I should be paying off what had the highest interest rate. Well, even though they made me feel stupid, I did it anyway, and I'm so thankful I stuck to my guns! There's nothing more encouraging than seeing your hard work get results. To this day, I have total disdain for any kind of so-called expert. Congrats to you and your wife--good job!
Wow this video helped out soo much. Just got into a 28k car loan at 22 years old. Looking for ways to pay it down and will definitely use this strategy. This video was sooo easy to understand unlike other ones on youtube. Will be subscribing!!!
Good job, man! I think your wife had the right idea - now you are out of debt and you still have an awesome truck. Every high school senior should be required to watch this video before graduating! :))
Yes, I definitely learned to listen from the beginning. If any HS students are reading this DO NOT BUY A BRAND NEW CAR or an expensive car for that matter with expensive being relative. It would be new for long, you can't keep up with body style changes and that money will do more for you invested but the truth is you mostly need that money to survive at that age!
I absolutely love that this was achieved as a couple. You & your wife working together as a team!! Listening to each other & having the same goal ❤️ God Bless the union🙏🏽
Thank you so much! We had paid down debt many times before but the journey to becoming 100% debt-free and committed to living debt-free has CHANGED EVERYTHING. I may have to bring her on one day to do a deep dive into our journey. Thanks for being a part of this community😃
Awesome video. You made it interesting to watch with your ability to “tell a story” in a sense and made it simple to understand. Well done keep up with the positive motivation. Always amazing to see people happy.
On my 2021 vision board is a quote by Dwayne Johnson "Success isn't always about greatness. It's about consistency. Consistent hard work leads to success. Greatness will come." I have to keep providing value and if people watch my videos end, hit the like button and share with a friend the subs will come! Thanks for supporting the channel. Check out my vision board for 2021 ruclips.net/video/nc0fv-bFOZw/видео.html
@@neecnee9703 You can call in the payment and ask for it to go to the principal. If you pay through their app (this is what I do) you may see the regular payment and another option for principal. Pay you regular payment and then pay whatever you want on the principal. You’ll see your balance go down faster.
Just paid off the Camry I bought brand new last year after financing through Toyota for 60 months with 1.9% apr. 15 months to pay off my car after I came across some extra cash and now I’m debt free and can keep saving even more than ever now.
You’re right. We needed extra money coming in so we went in with friends and flipped a house. Took the money from our credit cards invested it. Made minimum payments for four months. Sold the house and put it back on the cards. First payoff.... the truck!! Man it felt good. Second, the credit card. Now we are looking to do it again and pay student loans. Unless they just cancel them first 😂😂
CONGRATULATIONS ON A SUCCESSFUL FLIP! The grind is real! I tried a bunch of stuff over the years to get out of debt some worked, some didn't but one thing was constant. No matter how much I paid off, the debt always came back and bigger each time. Then I realized it was not a math problem, it was ME! Money is a mindset and you sound like you are focused. You got this!
I really appreciate these videos. I just bought a new car and I saw this one and the one about principal 🆚 extra payments and it gave me a clear plan going forward. Thank you 🙏🏽
Thnks bro I just bought a car with high interest kinda confuse how to pay off quick now I know just making principal payment only will reduce the loan and the interste as well good work
This video will light a fire under you ruclips.net/video/EL1IlyEf0-k/видео.html Plus once your credit improves you may want to look into a refi. ruclips.net/video/EeKYDRi2THM/видео.html
Debt snowball is same as Dave Ramsey’s money makeover plan. I started mine in January 2021 I’m sticking to it. Plan is to be debt free in June 2023 (excluding my mortgage )
I'm 21 and buying my first car and this gave me a big boost of confidence that I can actually pay off my car early and not worry about paying it off for 6 years
Be VERY smart about it dude...DO NOT GET EMOTIONAL. I got my dream truck 2015 LTZ Chevy Silverado(when I was 24) 37k out the door, $500 payment(make 120k a year) had no issue until I traded it for no reason for a Type R and now I’m paying $920 a month, upside down 11k on my car and working 7 days a week to get out of being upside down so I can get out of my loan. Be smart, don’t get a car over 10k dude. It’s not worth impressing people that don’t care about you...
My first car out of high school a 90 honda still wouldve had it if someone didnt steal that shit, shouldve put a kill switch. In January I got a new civic just cause It has an alarm and new features to keep my daughter safe ^^^
I like what I'm hearing. Although after my 1st new car buy ima stick to "semi-new" used car but only couple years old and very low milage that's practically a new car without paying a new car price and not getting hit with that 20% depreciation
lethalbowtie yup thats all it is. You call them and say hey i want to make a principal payment only to my car. They send you a receipt and your good. The good thing when you do this you dont get charged interest so def look into it.
You just got a new subscriber!! With the game you giving away, I don’t know why you don’t have 10k+ followers. I just got a 2nd car and I’m trying to pay if off by next year. I would love to use this blueprint, I can definitely use your help, you made it sound simple
Wow, thank you! That's aggressive goal but where would we be without goals. You got this! My primary goal for this channel is to talk about about personal finance but come from a real place. When we know better we do better. I come from humble beginnings and made a lot of upward progress. I don't want to wait until I've "made it" to start giving the game. I want to help as many people as I can along the way. Share any video on my channel with someone who you think it will help. Thanks for the support!
Oh it was fun and I felt so good driving home in my 1st BRAND NEW car! That feeling lasted about two months 😂 then I was like I have to get this thing paid off😤 To be honest, I can't wait to buy another new car but this time I'll have at least a million dollar net worth and the money will come from my assets not my income💯
Great job! Now just save up and pay cash for your next car. I haven’t had a car loan for over 20 years. Go by the motto, “If you can’t pay cash, you can’t afford it”.
My old car payment has turned in to nearly $20,000 in less than two years so yea, NO MORE CAR PAYMENTS FOR ME! Earning interest is too much fun to go back!
How is paying it cash a great thing to me it’s unwise your going to dump a lump sum of money into something that depreciates instead of using the money in other aspects of life that could bring you more returns? And you don’t know if your even going to keep the vehicle most Americans never pay there car off they just trade it in or in most cases it gets wrecked and totaled out so that motto “if you can’t pay cash you can’t afford it” is irrelevant in this case but then again there is always 2 ways of looking at things......no offense.
@@xxon3godxx584 no offense taken. A couple of things that were left unsaid. First is buying used, let someone else pay the depreciation. By paying cash, you can bank those payments and use it later. When you say most people trade in a car before it is paid off is the problem. Then you trade in negative equity, and increase your loan size. I am guilty of buying new cars when I shouldn’t of, even though I paid cash. Dave Ramsey says that you shouldn’t buy a new car unless you have net worth over a million dollars. I look back and wish I would have followed this rule. Instead of paying $36k for a new Highlander 6 years ago, I wish I would have found a 4 year old Lexus 350rx for about $20k. When I say, “If you can’t pay cash, you can’t afford it”, is to stay out of debt. Way to many people will buy something based on the “payment”. Then something happens and you aren’t working, cutbacks, illness, or maybe a global pandemic. Bank still wants to get paid. When you have no payments, no worries, just cruise on thru. We live in Iowa, in August we had what was the equivalent of a category 4 hurricane. Tons of damage to homes, trees and cars. So many of my wife’s co workers had their car destroyed by trees. Most had a car loan, and they owed more than it totaled for. So, not only did they owe money on a car that was totaled, some up to $5000, but they found themselves with no cash, and had to buy another car, and start the cycle all over again. I took no offense, but is any of that helps you in the long run, it is worth it.
I made a video talking about paying cash vs financing Pro's and Cons. ruclips.net/video/d1BUXNc1QKg/видео.html The main problem with the theory that it is better to finance and invest your cash is that the people I know (me included) who financed their car didn't actually have the money up front to pay cash nor invest so theory failed to launch. I've had my truck for 4 years and I can tell you that I'll be driving it until the turbo's blow and I may rebuild them and keep driving it. The next car I buy, I'll be asking myself how much money am I willing to lose! Not how much can I afford to pay. That don't mean I'll buy junk. In fact, the wife car is next to be replaced and we're looking at the new Blazer, used of course, but we'll spend about 20k. Some things make you money and others cost money. It's just life! What I'm doing on this channel is taking people inside the journey of broke and in debt to financial free and wealthy. I'm investing and working towards a point where a car, new or used will not and should not impact my long term plan. Buy a car really shouldn't be a big deal in our life. You need/want a car, go buy it. How to pay for it shouldn't be part of the discussion because the money is there. That is what I'm working towards! Who's coming on the journey with me.
@@DiamondEdwards I am with you man. What are you willing to lose. If you do, will it destroy your life. Honestly, at our point in life, we are saying the same thing regarding a second home. Questions we ask are, “will it appreciate? What % of our net worth is it? And if it burned down or blew away, would it change our lives dramatically”?
OMG I'm so glad I found this video. I'm just starting to think about paying off the last 10 thousand dollars on my car before the year is out. I didn't know anything about a principal only payment. Total payment is $450. a month but i pay $198. in interest. You just saved me a bundle. Now I have a plan! Thanks so much🙏
@@natashac5861 same rules apply. Put it in line with any other debt and get it paid off! 0% is not free. That payment invested would have made you 17% last year instead it lost you money. Cars suck because they are so expensive and drop in value. We should think how much we want to lose instead of how much can we afford!
@@bella1200c The S&P 500 returned 17% in 2020 with dividends reinvested. Despite the craziness that was 2020, it produced some good returns for many investors. Many reported earning over 25%, small cap did exceptionally well. My portfolio was up over 30% in 2020. So yes, I paid off my car because I've learned that interest is to be earned not paid! More investment related videos are on the way!
This just happened to us. We paid the principle payment. But, the daily interest rate is still incurring. So, I got make phones calls on Monday to get rid of it once and for all!
The car payment is set up to pay the interest in the first 10 months. The secret is once the car is paid off setup a special car account and being you have no car payments keep paying a monthly payment to that special account. When you go for that car you have the cash already saved in that special account.
"Had to put a new alternator in and I could drive a lil bit..." We call them the "hooptie" or "get out and push." I'm old skool so this made me belly roll laugh because I've been there. The boss just tries to give you extra hours to get things paid for. 😂💯🤣💯
I am so glad I have found this video. The first part of this video described me to a T the day I drove my car home that first night. Don't get me wrong, I absolutely love my car, everything about it. I am a little bit of a car guy, I detail her myself usually about once per month. I absolutely love everything about my car, other than the payment lol. I have been thinking of paying her off early. I did the math last week, and I think I can get it done by May, 2022, which would would be two years early. I might be able to to get it paid in April, or maybe March, but we will see. I have saved this video and will watch it whenever I think I might be changing my mind. This is my only debt, other than my mortgage, and the thought of no longer having a payment sounds so nice. Awesome video!
Thank you for sharing! Personally, I'm done with car payments. The light bulb moment for me was when I accepted the fact that anything I finance will have to be paid back with cash. If that's the case I should just pay in cash and if I don't have the cash then I'm about to play myself! "Talking non-mortgage type loans"
@@DiamondEdwards Update: I paid off my car earlier today. It feels weird, and I admit...I was kinda freaking out a little right after I did. Just seeing my account decrease by that significant of a margin...it was a little unsettling at first, but I think I am ok now. On to building my emergency fund up to where it needs to be, since that was my last debt.
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Here is the link to the video I mentioned. ruclips.net/video/YYFj09myuoc/видео.html "TO PAY OFF DEBT Avoid these 8 mistakes to GET out of DEBT FAST" I realized I changed the thumbnail after creating this one.
bro i have a 24,000 auto loan debt do u think is a good idea to pay 10,000 to the principal and stay with no savings
Always keep something in savings. When I was getting out of debt I keep $2k in savings which is paper thin but that was my motivation to get it done as fast as I could. Plus that was enough to cover the things that was most probable. It worked like a champ and get out debt fast. Now I can save more than ever. Do it!
Great tip. I was making double payments per month versus paying the principal down
@@vavavogue4070
In retrospect shouldn't you been paying more to your principal?
@@user-lc7zt8sk6i from what I learned from the video yes
Bro I did this with my car then my student loan finally I paid my first house off. My job Give us 44 hrs a week in OT with over night extra pay and every Sunday a paid holiday. I took a 3 year oath to pay my first house off in 3 year with every December I paid 30k towards principal. Meaning I paid off a 140k house off in 3 years. Now I’m working towards my 2nd house with the first house as a rent house going for 1800 a month.
WoW!!! I love it! The grind is real and rewarding! Thanks for sharing your story, you never know who may read this and it changes their life!
@@DiamondEdwards thanks for replying but u said the most important word FOCUS
Where do you work at?
@@906lane I work at a plant in Texas
Details please. You took the overtime and saved 30 k and then paid in December? If so how did you skip mortgage payments each month? Please explain I want to do similar within 5 tears for student loan. Thanks
I'm 50 years old. I had to buy a car after many years with no car payment. My new car loan scared me to death!!!! I was literally depressed over my decision. HOWEVER, the information in this video just changed my life substantially!!!! THANK YOU FOR YOUR TIME SHARING THIS!!!!
I am honored this video helped!
You just saved my life. I was just getting ready to pay my car off because its up side down.
Now i see how to improve my credit and save money.
that’s literally me right now. I’m depressed af about the purchase I just made. I haven’t even enjoy the car I purchased because of the payments. Time to see how diamond can save me 💴! O
Sometimes how this world works really frustrates me. The fact that we all have similar situations like this is so sad. And it sucks that all these big companies just want to make money and don’t care about who they’re screwing over. They just try to pull a fast one on you and get their money. I literally bought a car yesterday. MY FIRST CAR! I saved and saved. I was tired of having to ask people for rides, and using other peoples cars. After about 2 weeks of looking at cars, trying to find something within my budget, I was tired. I just wanted a car. So I bought the last one I saw. Technically it’s within my budget but it’s at the top of my budget and the interest is high. I feel like I can’t really enjoy the car because I’m thinking about that interest and the amount of time I have the car for. But knowing that there are people like me out there, with the same situation, who have come out on the other side is such a good feeling. It gives me a peace of mind and makes me feel less scared. I know I’m not alone in this. We got this this guys. Thank you diamond for your helpful and inspiring video!
Debt is emotional. Paid my truck off last year 40 months. That's my first and last car payment. Paid my house off in 2016. Building a emergency cash fund of 20k to 24k by end of year. Household income is less than 50k.
You are killing it! Congrats and thanks for the inspiration💪
This is my longer term goal.
💪🏽
Nice
Proud of you 👏🏼👏🏼
I watched this video a ways back while in the gym after financing my 2010 Mazda 3 for $7900. This video helped me knock out a 3 year payment in about a year and a half. The numbers seem small but Im now 21 years old and this was my first vehicle Ive ever financed. Thanks so much for the inspiration!
That is awesome! Congratulations!!!
mazda 3's are fun to drive too i got 150000 kms on mine she runs like a top!
Me with financing my first Mazda 3 too :D
You're light years ahead of where I was at 21, congratulations, continue your financial education.🌝
This video just popped up on my feed. My daughter had to buy a car hers just gave out. She was’t smart and bought what she wanted, instead of what she could afford. I’ll be sharing this video when I visit her next week. I think your honesty in showing your personal payment information was what I found so impactful. I’m retired (59), own my home (on an island community), and car, with only $1600 in bills monthly. I know that reading some of the comments, that your honesty has helped a lot of younger people see the “light”. I’m just getting tired of the , “Hey mom, can I borrow 5k, to fix a problem that they should’ve have or need to. They don’t want to listen to me, I hope they’ll listen to you. Have a wonderful day.
They’ll give you a quick car loan for 40k but won’t give you a home loan as quick for 40k
Exactly! Same thing with student loans so what's really the message!
Yup
Now this is an eye opener frfr Seven
@@DiamondEdwards the message is things that don’t hold no value. They give a loan quicker for something that holds no value. than things that gain value. You wanna buy a car no problem. You wanna buy land more red tape. Another part of slavery you probably won’t understand.
We accept loans faster for stuff that doesn't appreciate because it's easy.
Yes I just got my car yesterday and I’m already trying to figure out how to pay it off early and you made it easy thank you ☺️
Never undermine the information you’re putting out for everyone! You’re literally out here changing lives thank you so much !!
I appreciate that Henry! I just keep on pushin and posting.
Diamond Edwards I can respect that! I had a horrible APR on my first vehicle. Looking to refinance and get it paid off in a year or so.
Henry Martinez We live and learn! Glad you can get out of the deal and move forward. I think this video may help you out too Paying Off Car Loan Early | Principal vs Extra Payment Explained ruclips.net/video/JLARGIGlOYM/видео.html Thanks for supporting my channel.
I just paid off my car last year, and it is prolly one of the biggest steps of financial freedom I have ever had in my life. It is such a relief.. Freedom, less stress💜
Congratulations I know your feeling great! It feels good to work towards your future instead of paying for your past, right !?!
Same here! Up until the last five months I’ve always had car payments and new cars every four years. I decided to keep my current car and pay it off! I’m definitely enjoying not having any car payments!
It’s amazing that so many people have never had no car payments.
I also enjoy no payments but it drove my credit score down 25 points once I paid off my car off 🤦🏾♀️
@@realtalkjanedoe I remember that happened to me after I paid my car off too, although I didn’t drop that much. It will come back up though
I really appreciate that you're so honest, you made mistakes and you own it. I grew up really poor so getting into ANY debt is terrifying and my family looks down on me. your advice was really great
Thank you. It bothers me when people talk down to other people, trying to make themselves look better. When you look at the data, it's clear that people are lying and most are not doing as well as they want to you believe. Thanks for being part of the community. This is a place to learn and grew together!
Just focus, if you have a 9 to 5, get a part time job as well and just start knocking out that debt. Don't buy stuff you don't need and invest your money!
That’s what I been doing so I could save for a better new Car or truck just got my into a trade school & after that & get a good Job I will buy be able to buy a good car or truck
Work 730-430. Work afterward and get up and five and have no life. lol
@@DMM8389 those are the current hours I work but for construction and I’m usually pretty tired after wards I’ve been thinking about a part time after
🤔
My wife and I did the same thing! It was hard and lots of arguments but well worth it!! Kudos to you. May God continue to bless your sweet family.
I glad your made it to he other side! Thank you!
Nuggets! Thank you!
“The new car smell was gone. They’re already talking about changing the body style”
I thank you so much for this video. I have been trying to pay off my car for the longest. No one told me to put extra money towards the principle. I have just been paying an extra car payment. Thank you. Thank you from the bottom of my heart. I need it to hear all this.
I was not expecting bros voice😭😭😭
Sound like Chris Rock
Man the Chris Rock voice.
Right was too shocked 😂😂😂
Fact 😂😂😂😂
lol me either but it’s cool Chris rock voice double
Hey kiddo, I'm 69 years old and you just taught me something new!!!!!!! I owe you one!!!!!!👍😊😍
I paid mine off quick too. I hate owing ppl money, and my car was the only debt I hate. So, I doubled or tripled my payments every month. I avoid paying all that extra interest like you said. I've basically been riding for free ever since. It feels great knowing I have ZERO debt.
Debt free is the way! Better than being debt free is the mindset shift that occurred during my journey. My truck is now 5 years old and I have no plans to replace it anything soon and when I do, I will pay cash which I can only do because of properly planning.
@@DiamondEdwards Exactly! My car is 13 yrs old. It still looks & rides good. I chuckle at my coworkers that are constantly leasing cars for 1200+ a month. It's such a waste of money imo.
Sounds like a great plan. In order for this plan to really work, you have to basically NOT buy anything else until the current debts are payed off. That is the true grind. This is where most people fail to get out of debt.
Indeed, scaling back lifestyle is a hard feat, but everything scales up once your debt free💯!
I recently had bad anxiety just thinking about the car I own. I'm glad I watched this. I'll keep you updated! 😄
Please do! It's a journey but it's the journey that will prevent you from signing up for this. "bad anxiety" next time. What kept me going was thinking about what I was going to do with that money once I had no payments.
Same here!!
Me too. I jus recently got myself my dream car & man i couldnt sleep. Had bad buyer's anxiety. Im getting over it slowly, but knowing what to do will put the mind & heart at ease. Plus knowing that payments are only temporary tells me that feeling is temporary as well.
Im currently $26k , 72 months, 2.99 APR.
After watching this, it helped me clear my concerns & parts of my buyer's remorse anxiety. I got a paper calendar for 2021 scribbling plans to keep myself focus on paying off debt.
I decided to pay $74 more on my car note starting in October 2021. By January 2024, it'll be paid off.
YES SIR! Debt really sucks. Seeing that interest charges on statements really killed me. Really made me think why I was so into purchasing things for instant gratification. Costs me so much more than it's worth. I also used debt snowball method. Felt so good not having to worry about paying somebody but myself. Making things short. I was able to close on a house. Building assets in stocks. That's a different subject. Anyways, very happy for you guys to get rid of debt. Freedom feels so good! Great video~
happy for you 🙌🏾
CONGRATULATIONS on all level! The other side of debt is so freeing. It's hard to put into word the feeling. Having money giving options. Options reduces stress and that lead to a happier life. Next month will make two years since becoming debt free and I've been invest all that money plus some and I could not be happier with the growth. "Off the Charts"! Makes me think what was I thinking back then. Investing is where want to take the channel but felt I needed to start with the foundation! To often we try and skip a step only to fall on our face! Stay focus and keep up the good work!
If you and your spouse on the same page you'll be unstoppable
What if I'm single with my mind right and a good game plan?
@@user-lc7zt8sk6i stack your paper and to me being single its easier. If you mess up you can't blame anybody
@@terrellgaines88
Paper has been stacking brother. I honestly dont know the next best move to make. I feel like I've stacked and dont have anything to show for it. When you dont have paper you want to buy all these things you dont really need. When you have the paper...you dont want to buy much of anything because you cant come to your sense about forking all that paper over.
You’re absolutely correct!! I’m a go getter and my spouse isn’t and it’s harder TRUST ME.!! He’s a I’ll use everyone else and don’t wanna go get his own smh
@@AB-oi7ov I'll believe you
I honestly made that same mistake and felt so dumb afterwards. On only paying the payment and thinking it was paying it off faster. Now I understand how the principle payments work and it’s such a relief. Thank you for this insight.
This is the first video I’ve watched where the scenario ends with keeping that nice car you bought. I feel like having a partner that was committed to the financial freedom of both parties was a tremendous advantage.
Getting our thoughts aligned on how to reach our goals was a true game changer! I am glad we worked through it and kept the car!
Great video especially like the part about principal payments because I definitely had to learn the hard way how the bank doesn’t explicitly show that the extra payment will just be added to the next month. One thing I noticed about becoming an adult is that you really have to read the fine print and ask the right questions about things because businesses will try to get over on you 🤦🏿♂️
Yesssss, I work in auto finance and trust that these dealerships DONT care about people 👏🏼 it’s crazy seeing these loans on a daily basis
So wish we would have had RUclips when I was young. I made so many mistakes. Thanks for the information. God bless!
Me too but I'm not sure if I would have listened though. I made a lot mistakes myself but now I realize it was due to a flawed view of success. This view was developed in my youth and encouraged by my environment, teachers and associates. Once I decided that the message I received was wrong and I needed to redefine success, EVERYTHING CHANGED!
I sure hope everyone watching this that has debt is listening to what this guy is saying. This is valuable info!
Thank you!
My Brother, you broke this subject down so well, I am walking around with a blessing of knowledge that I will definitely applying to my debt. Thank you, thank you and thank you again for sharing. Informative and funny.
Thank you for the kind words! Sending positive vibes your way!
I watched this video several times. I was even inspired by the video for my pickup truck. I'm grateful for the advice indeed
Everyone who has an Auto Loan should watch this!! 👏🏼👏🏼👏🏼
Thank you!
I was just researching today what to do with my car note. Even phoned the the finance agency. Then I saw this video. My answer is here. Thanks guy. I'm going to hit principal only.
I ABSOLUTELY LOVED this video! You are an inspiration to many that feel their options are few!!
I'm new here, but this came right on time!!! 🙏🏼 Took notes, and will be definitely paying my SUV off in a quick, fast, and hurry! 📝
Welcome aboard!
The advice about making principal only payments was absolute game for me. I made a decision in panic after totaling my previous car and am regretting it so bad! I planned on paying 500 more per month but didn’t realize that I should put it toward the principal. THANKS SO MUCH!
I hate the word DESERVE. if you worked that hard, use the word EARNED.
I agree! But because I was already in debt, not saving enough for retirement, and blind broke, I neither deserved nor earned that vehicle. I was thinking short term not long term and setting myself up to be old, broke and struggling. Not good but I turned it around.
FYI, Blind broke is someone who is broke but can't see it because they are blinded by good cash flow. I just make that up! lol
@@DiamondEdwards so at what point do you deserve something that you work hard for?? I’m putting money into 401k, savings, & staying on a budget I don’t have any real debt other than student loans. Which is no more than $10,000...
@@MRiGOin23 for me the answer is when I have enough cash that I can either spent it, give it or burn it without much thought. If I deserve something it means I’ve been planning for it and can write a check.
Right!!!!!!
Then you find yourself in a web of troubles.
Amen to that!
Recently got a car. First payment coming up. Wanna pay it off asap. I've heard of paying on principal before, such as on homes. Will ABSOLUTELY be applying this toward my car payments! Now THIS I understand! So glad I watched this!! A million thank yous, Diamond!!
I just bought a new new because I had to convince myself I deserved it too after keeping my other car for 10 years. I am going to use this method. I actually used this method in my early twenties when I bought my first car. I actually had a great salesmen back then that told me about interest vs principal and it made a lot of sense.. It does work and necessary to pay off debt. Thank you. Great video.
That's what's up! Best luck I hope you get this one knocked out quick too.
Excellent job. You and your wife should be proud. You worked together to achieve something significant
This came right in time! Needed to hear this! I got 2 yrs left. Trying to do it in less! 🙏🏾✨🙌🏾
💪
Bro, I just discovered your channel. Please make more videos! Your content is explained so well and is invaluable.
Thank you for this my car broke down a year ago and I had bad credit so I got a car with 17% interest rate over the last year since I got sober I've payed off all my debt which was about 17k alone so now I have no debt besides my car I'm gonna start doing the principal only payment like you said I still owe 19k on the car but I can happily say I've raised my credit score from 480-680 and it all started with going sober 😃
OMG.. u r gr8... I have had enormous debt before... paid it off. Still have debt... & retired.But never knew I could principal only. Thank u thank u...
Got it.. Make extra income and apply only to the principal!!! Going to pull out the paperwork and review these numbers... Im tired of seeing our numbers move like a sloth!!!
Definitely going to apply this method to out debt free journey. Thank you 😊.
I did the debt snow ball. Same scenario. Car is the last thing and after lifestyle cuts 2400 extra a month thanks for the letting me know it’s just principle
Thank you so much for giving this free advice. A lot of people keep or charge money for info like this. BTW, I paid mine off early by doing this very tip so I encourage everyone to listen to what your saying. GOD bless you!
Fantastic!
When we were raising our now-grown kids, we had a lot of debt. I decided to make extra payments to the item that had the lowest balance because, to me, I knew that would lift my spirits with faster progress. However, the "experts" at the time said this was stupid and I should be paying off what had the highest interest rate. Well, even though they made me feel stupid, I did it anyway, and I'm so thankful I stuck to my guns! There's nothing more encouraging than seeing your hard work get results. To this day, I have total disdain for any kind of so-called expert. Congrats to you and your wife--good job!
Thank you for being so upfront and honest! We are on track to pay off one of our cars in 1 year from now!
I’m pickin’ up what you’re puttin’ down. Good stuff appreciate it man ✊🏾
Appreciate that
Wow this video helped out soo much. Just got into a 28k car loan at 22 years old. Looking for ways to pay it down and will definitely use this strategy. This video was sooo easy to understand unlike other ones on youtube. Will be subscribing!!!
Thank you so much for the JEWELRY brother!!! I've just bought my car in full with no payments!
Enjoy it, no payments is great filling and it allows you to save up for the next one.
Good job, man! I think your wife had the right idea - now you are out of debt and you still have an awesome truck. Every high school senior should be required to watch this video before graduating! :))
Yes, I definitely learned to listen from the beginning. If any HS students are reading this DO NOT BUY A BRAND NEW CAR or an expensive car for that matter with expensive being relative. It would be new for long, you can't keep up with body style changes and that money will do more for you invested but the truth is you mostly need that money to survive at that age!
I absolutely love that this was achieved as a couple. You & your wife working together as a team!! Listening to each other & having the same goal ❤️ God Bless the union🙏🏽
Thank you so much! We had paid down debt many times before but the journey to becoming 100% debt-free and committed to living debt-free has CHANGED EVERYTHING. I may have to bring her on one day to do a deep dive into our journey. Thanks for being a part of this community😃
Bro I'm blown away by the presentation of how to get this done. I have a few questions thou but good looks
How can I help you? hit me up of IG@diamonddedwards. Thanks for watching😃
Good stuff. We put our vehicles in our debt snowball and payed them off early. No more car payments for us.
Amazing video, was afraid there was going to be a gimmick but you laid out the truth and motivated me to pour into this debt
I felt trapped in my agreement. Thank you for making this video and giving me motivation. It CAN be done 😅 Just have to stay focused. Thank you again!
Without Tip 5 anyone chances of success is significantly impacted! Stay focused and don't listen to people who are broker than you! You CAN DO THIS!!!
I just got a car last next and as soon as I start making those payments a little extra will go to the principal only thanks for the advice
Awesome video. You made it interesting to watch with your ability to “tell a story” in a sense and made it simple to understand. Well done keep up with the positive motivation. Always amazing to see people happy.
I appreciate that! Thank you🙌
How on God's earth can you only have less than eight thousand subs Brother???? How??? This is life-saving advice!!!!
On my 2021 vision board is a quote by Dwayne Johnson "Success isn't always about greatness. It's about consistency. Consistent hard work leads to success. Greatness will come." I have to keep providing value and if people watch my videos end, hit the like button and share with a friend the subs will come! Thanks for supporting the channel. Check out my vision board for 2021 ruclips.net/video/nc0fv-bFOZw/видео.html
this is excellent!!! I started making principal only payments and I see the difference.
👍
Hey, how exactly do you do that?
@@neecnee9703 You can call in the payment and ask for it to go to the principal. If you pay through their app (this is what I do) you may see the regular payment and another option for principal. Pay you regular payment and then pay whatever you want on the principal. You’ll see your balance go down faster.
Just paid off the Camry I bought brand new last year after financing through Toyota for 60 months with 1.9% apr. 15 months to pay off my car after I came across some extra cash and now I’m debt free and can keep saving even more than ever now.
It's amazing how it works out. Welcome to the otherside!
Paid off my camaro 2-5 years early as well. It feels good to not have that car payment. #followed #subscribed
Thanks for the sub and congrats! #nopayments
You’re right. We needed extra money coming in so we went in with friends and flipped a house. Took the money from our credit cards invested it. Made minimum payments for four months. Sold the house and put it back on the cards. First payoff.... the truck!! Man it felt good. Second, the credit card. Now we are looking to do it again and pay student loans. Unless they just cancel them first 😂😂
CONGRATULATIONS ON A SUCCESSFUL FLIP! The grind is real! I tried a bunch of stuff over the years to get out of debt some worked, some didn't but one thing was constant. No matter how much I paid off, the debt always came back and bigger each time. Then I realized it was not a math problem, it was ME! Money is a mindset and you sound like you are focused. You got this!
@@DiamondEdwards we figured that same thing out too. So we have decided to turn the table. Thanks for all of the advice. Great stuff!
@David Bryant yeah.... you are two months late on this post. Student loans paid 😂😂
@@arnettabosby5100 😂😂😂 like I said the grind is REAL🚫 🧢💯
@@DiamondEdwards very real. I usually don’t respond to trolls but sometimes.....
I really appreciate these videos. I just bought a new car and I saw this one and the one about principal 🆚 extra payments and it gave me a clear plan going forward. Thank you 🙏🏽
That is awesome! After I paid off my truck I said never again. I said that once before in my life but this time I mean it!
Thnks bro I just bought a car with high interest kinda confuse how to pay off quick now I know just making principal payment only will reduce the loan and the interste as well good work
This video will light a fire under you ruclips.net/video/EL1IlyEf0-k/видео.html Plus once your credit improves you may want to look into a refi. ruclips.net/video/EeKYDRi2THM/видео.html
Debt snowball is same as Dave Ramsey’s money makeover plan. I started mine in January 2021 I’m sticking to it. Plan is to be debt free in June 2023 (excluding my mortgage )
Good stuff, stay focused, DR plan work! Becoming debt-free has changed my family future in more ways than I originally imagined.
@@DiamondEdwards thanks ! Retiring in 5 years and I need to be debt free except my mortgage at least 2-3 years before I retire.
Thx for the info. I've been making extra payments on my car but I wasn't applying them as principal payments....until now!
Any time!
Thank you sir for the great advice. I was making double payments a month but didn’t know about the principal only payment options.
Glad it helped😀
I'm 21 and buying my first car and this gave me a big boost of confidence that I can actually pay off my car early and not worry about paying it off for 6 years
Be VERY smart about it dude...DO NOT GET EMOTIONAL. I got my dream truck 2015 LTZ Chevy Silverado(when I was 24) 37k out the door, $500 payment(make 120k a year) had no issue until I traded it for no reason for a Type R and now I’m paying $920 a month, upside down 11k on my car and working 7 days a week to get out of being upside down so I can get out of my loan. Be smart, don’t get a car over 10k dude. It’s not worth impressing people that don’t care about you...
Fuck the car doggie , get a used cheap car, you dont need to look hard with a clean whip
My first car out of high school a 90 honda still wouldve had it if someone didnt steal that shit, shouldve put a kill switch. In January I got a new civic just cause It has an alarm and new features to keep my daughter safe ^^^
Principal only. I never would have thought about that. Thanks for dropping gems! ✊🏾
Happy to help!
Congratulations on your tenacity and focus!
Thank you!! I just hope my story inspires someone else. The journey is difficult but reward is worth it🙌
I like what I'm hearing. Although after my 1st new car buy ima stick to "semi-new" used car but only couple years old and very low milage that's practically a new car without paying a new car price and not getting hit with that 20% depreciation
Smart!
And you have no warranties like a new car.
Great video 🙌🏾. Im actually about to make my first principle payment now.
It’s the secret sauce!
how do you pay just the principle only?do i need to call the bank to tell them im paying principle only?thanks in advance🤗
lethalbowtie yup thats all it is. You call them and say hey i want to make a principal payment only to my car. They send you a receipt and your good. The good thing when you do this you dont get charged interest so def look into it.
@@creditkingtv4115 thanks bunch
Thank you! I’m even more inspired to continuing getting debt paid!
Best of luck!
Good content.......I am currently doing this to a 0% loan. I will be done with a 63 month note in 30 months...
Get it gone! Free is never free. I like your style!
Great info and I’m on track for 2021 with my new 2020 car.... I’m staying focused like you said.
# grinding because I love my car and keeping it.
I didn’t know about that principal only payment thing. Good info, I appreciate it my guy.
Thank you so much! I've been searching for the answers to how to pay it off appropriately and win. You explained it perfectly. Thank you.
You are so welcome!
Great tips! I was on my way to paying up but I will def hit the principle payment button !
You got this!
You just got a new subscriber!! With the game you giving away, I don’t know why you don’t have 10k+ followers. I just got a 2nd car and I’m trying to pay if off by next year. I would love to use this blueprint, I can definitely use your help, you made it sound simple
Wow, thank you! That's aggressive goal but where would we be without goals. You got this! My primary goal for this channel is to talk about about personal finance but come from a real place. When we know better we do better. I come from humble beginnings and made a lot of upward progress. I don't want to wait until I've "made it" to start giving the game. I want to help as many people as I can along the way. Share any video on my channel with someone who you think it will help. Thanks for the support!
Just subscribe. Seems we have similar mindsets. Trying to pay my brand New car in 12m. I'm 7months in. Paying principle is definitely 🔑
That is a great goal. Thanks for subbing! It's amazing what we can do when we slow down and focus. Come back so we can celebrate together😀
I wish I’ve known this two years ago! Better late than never though. Thank you for the info brother. New sub!
Thanks for the sub! We get to start fresh every morning.
Awesome video, my husband and I just bought a Jeep Grand Cherokee. This was very helpful. 👏🏾👏🏾
You make car buying sound so fun 🎈🎈🎈
Oh it was fun and I felt so good driving home in my 1st BRAND NEW car! That feeling lasted about two months 😂 then I was like I have to get this thing paid off😤 To be honest, I can't wait to buy another new car but this time I'll have at least a million dollar net worth and the money will come from my assets not my income💯
@@DiamondEdwards I know that's right. Congratulations, I know personally that's a big accomplishment. I enjoy and love the content you post.
Thanks for the Motivation and your help. Best Regards Brad from Denver
Great job! Now just save up and pay cash for your next car. I haven’t had a car loan for over 20 years. Go by the motto, “If you can’t pay cash, you can’t afford it”.
My old car payment has turned in to nearly $20,000 in less than two years so yea, NO MORE CAR PAYMENTS FOR ME! Earning interest is too much fun to go back!
How is paying it cash a great thing to me it’s unwise your going to dump a lump sum of money into something that depreciates instead of using the money in other aspects of life that could bring you more returns? And you don’t know if your even going to keep the vehicle most Americans never pay there car off they just trade it in or in most cases it gets wrecked and totaled out so that motto “if you can’t pay cash you can’t afford it” is irrelevant in this case but then again there is always 2 ways of looking at things......no offense.
@@xxon3godxx584 no offense taken. A couple of things that were left unsaid. First is buying used, let someone else pay the depreciation. By paying cash, you can bank those payments and use it later. When you say most people trade in a car before it is paid off is the problem. Then you trade in negative equity, and increase your loan size. I am guilty of buying new cars when I shouldn’t of, even though I paid cash. Dave Ramsey says that you shouldn’t buy a new car unless you have net worth over a million dollars. I look back and wish I would have followed this rule. Instead of paying $36k for a new Highlander 6 years ago, I wish I would have found a 4 year old Lexus 350rx for about $20k. When I say, “If you can’t pay cash, you can’t afford it”, is to stay out of debt. Way to many people will buy something based on the “payment”. Then something happens and you aren’t working, cutbacks, illness, or maybe a global pandemic. Bank still wants to get paid. When you have no payments, no worries, just cruise on thru. We live in Iowa, in August we had what was the equivalent of a category 4 hurricane. Tons of damage to homes, trees and cars. So many of my wife’s co workers had their car destroyed by trees. Most had a car loan, and they owed more than it totaled for. So, not only did they owe money on a car that was totaled, some up to $5000, but they found themselves with no cash, and had to buy another car, and start the cycle all over again. I took no offense, but is any of that helps you in the long run, it is worth it.
I made a video talking about paying cash vs financing Pro's and Cons. ruclips.net/video/d1BUXNc1QKg/видео.html The main problem with the theory that it is better to finance and invest your cash is that the people I know (me included) who financed their car didn't actually have the money up front to pay cash nor invest so theory failed to launch. I've had my truck for 4 years and I can tell you that I'll be driving it until the turbo's blow and I may rebuild them and keep driving it. The next car I buy, I'll be asking myself how much money am I willing to lose! Not how much can I afford to pay. That don't mean I'll buy junk. In fact, the wife car is next to be replaced and we're looking at the new Blazer, used of course, but we'll spend about 20k. Some things make you money and others cost money. It's just life!
What I'm doing on this channel is taking people inside the journey of broke and in debt to financial free and wealthy. I'm investing and working towards a point where a car, new or used will not and should not impact my long term plan. Buy a car really shouldn't be a big deal in our life. You need/want a car, go buy it. How to pay for it shouldn't be part of the discussion because the money is there. That is what I'm working towards! Who's coming on the journey with me.
@@DiamondEdwards I am with you man. What are you willing to lose. If you do, will it destroy your life. Honestly, at our point in life, we are saying the same thing regarding a second home. Questions we ask are, “will it appreciate? What % of our net worth is it? And if it burned down or blew away, would it change our lives dramatically”?
OMG I'm so glad I found this video. I'm just starting to think about paying off the last 10 thousand dollars on my car before the year is out. I didn't know anything about a principal only payment. Total payment is $450. a month but i pay $198. in interest. You just saved me a bundle. Now I have a plan! Thanks so much🙏
Thanks for watching! I'm glad you found this information helpful. You got this💪
I just paid my car off. I did it in 3 years by putting extra money to the principle.
Congratulations Matt! Time to celebrate by paying yourself a car note so you pay cash next time. But seriously, congrats on knocking out your debt!!!
What if you have 0 % on your car loan ?
@@natashac5861 same rules apply. Put it in line with any other debt and get it paid off! 0% is not free. That payment invested would have made you 17% last year instead it lost you money. Cars suck because they are so expensive and drop in value. We should think how much we want to lose instead of how much can we afford!
@@DiamondEdwards -- Where can you get 17%. Ill pay my car off tomorrow and invest!
@@bella1200c The S&P 500 returned 17% in 2020 with dividends reinvested. Despite the craziness that was 2020, it produced some good returns for many investors. Many reported earning over 25%, small cap did exceptionally well. My portfolio was up over 30% in 2020. So yes, I paid off my car because I've learned that interest is to be earned not paid! More investment related videos are on the way!
Thank you, I wasn’t sure about principal & interest, you explained it quick and easy
If Richard Pryor and Chris Rock had a kid 😂 love the video bud keep up the good work 🙏🏼
😂😂😂
Great info and will apply it to pay off my vehicle
Just found your channel brother keep up the great work!
Dam I wish I knew you 20 years ago..this info is so valuable..thank you...you are a God send...
🙏
This just happened to us. We paid the principle payment. But, the daily interest rate is still incurring. So, I got make phones calls on Monday to get rid of it once and for all!
Loved the vid
Definitely makes sense
Debt free is the way to go
I’m listening at 1.5 speed and it’s like Kevin Hart giving me advice.
😂😂😂
Financial stand up. CDeez savings in my Certified Deposit accounts.
More like Chris Rock. 😂 I really like this channel. 💪🏽💸
Yeah I definitely get Chris Rock more than Kevin Hart 😅
1.25x is the sweet spot 😂
You are super entertaining… I could easily see snippets of this video in TikTok to teach others about mistakes with auto loans.
The car payment is set up to pay the interest in the first 10 months. The secret is once the car is paid off setup a special car account and being you have no car payments keep paying a monthly payment to that special account. When you go for that car you have the cash already saved in that special account.
Thank you for sharing that nugget. Ima apply it as soon as I pay of the two credits. Truly appreciate you making this video
Glad it was helpful!
"Had to put a new alternator in and I could drive a lil bit..." We call them the "hooptie" or "get out and push." I'm old skool so this made me belly roll laugh because I've been there. The boss just tries to give you extra hours to get things paid for. 😂💯🤣💯
I can relate!
I am so glad I have found this video. The first part of this video described me to a T the day I drove my car home that first night. Don't get me wrong, I absolutely love my car, everything about it. I am a little bit of a car guy, I detail her myself usually about once per month. I absolutely love everything about my car, other than the payment lol. I have been thinking of paying her off early. I did the math last week, and I think I can get it done by May, 2022, which would would be two years early. I might be able to to get it paid in April, or maybe March, but we will see. I have saved this video and will watch it whenever I think I might be changing my mind. This is my only debt, other than my mortgage, and the thought of no longer having a payment sounds so nice. Awesome video!
Thank you for sharing! Personally, I'm done with car payments. The light bulb moment for me was when I accepted the fact that anything I finance will have to be paid back with cash. If that's the case I should just pay in cash and if I don't have the cash then I'm about to play myself! "Talking non-mortgage type loans"
@@DiamondEdwards Update: I paid off my car earlier today. It feels weird, and I admit...I was kinda freaking out a little right after I did. Just seeing my account decrease by that significant of a margin...it was a little unsettling at first, but I think I am ok now. On to building my emergency fund up to where it needs to be, since that was my last debt.