April 1, 2025 • 28 mins
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In this episode of the Dad podcast, hosts Brad Nelson, Chris, Katie, and Ryan from Debt-Free Dad dive deep into the financial implications of buying a new car. They discuss the high payments, massive depreciation, and how these factors can hinder financial freedom. They share their personal debt payoff journeys and provide insights into why Americans love new cars, debunking the myths linked to new car safety, reliability, and warranties. The hosts stress the advantages of buying used cars and outline the broader financial and emotional costs associated with new car payments. Join them as they offer strategies to break free from the paycheck-to-paycheck cycle, reduce financial stress, and build savings. Tune in to explore if buying a new car is a smart financial move or just a costly disguise.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Brad Nelson (00:00):
Hey, nothing sparks a debate like the topic of
buying a new car.
It's exciting, it's shiny and,let's be honest, that new car
smell is pretty awesome.
But is it actually a smartfinancial move or is it just a
money trap in disguise?
Now today on the Debt-Free DadPodcast, we're breaking down the
real cost of new cars, fromsky-high payments to massive
(00:24):
depreciation, and how they couldbe holding you back from
financial freedom.
Now, if you're thinking aboutupgrading your ride, this
episode is a must-listen beforeyou make a decision that could
cost you thousands.
Announcer (00:38):
You're listening to the Debt-Free Dad podcast with
Brad Nelson.
Brad and his co-hostsexperience the anxiety of living
paycheck to paycheck beforelearning the fundamentals of
financial success.
They are now on a mission toempower regular people to pay
off their debt for good andenjoy happier, less stressful
lives.
Keep listening forinspirational interviews, tips,
(01:00):
tricks and practical advice togain financial freedom tips
tricks and practical advice togain financial freedom.
Brad Nelson (01:11):
Hey guys, I'm Brett Nelson, founder of Debt Free
Debt.
I paid off about $45,000 indebt.
I've been debt free now formore than 12 years.
I've also been fortunate tohelp thousands of other people
save and pay off tens ofmillions of dollars with the
work that we do here at DebtFree Debt.
Chris Hawkins (01:21):
And my name is Chris.
We started our financialjourney 20 years ago, 2005.
And from 2005 to 2008, we paidoff just under $100,000 worth of
debt, and we haven't had apayment, except for our house,
since then.
Kati Hatfield (01:37):
And I'm Katie, and over the last six and a half
years I have paid off over$200,000 in debt on a single
income.
Ryan Nelson (01:45):
And my name is Ryan Nelson.
My wife and I off over $200,000in debt on a single income.
And my name is Ryan Nelson.
Brad Nelson (01:50):
My wife and I paid off $160,000 over eight years
while we were raising three kids.
All right, guys.
Now, after listening to thisepisode, if you're someone who's
ready to take things to thenext level, you're ready to
break free from living paycheckto paycheck, you want to reduce
financial stress, you want tobuild more savings and finally
pay off that debt for good.
But maybe you're not quite surewhere to get started.
We've created some incrediblefree resources here at Debt Free
Dad to help you get there, andwe'll be sharing some details
about how you get started withthat later on in today's episode
(02:13):
.
So, guys, the new car debate howmany episodes have we done
about new cars?
I think we've only done one,maybe two, and the show's been
on now for our fifth season,fifth year over 300 episodes.
But, man, this thing getspeople stirred up more than
anything.
Is this whole new car versusused car?
Man, people just get so angryabout their car.
(02:36):
So the first thing I want tojust ask is like why the heck do
we love new cars so much herein the United States?
Kati Hatfield (02:44):
They're shiny and pretty and they're clean, but I
actually am one of the peoplewho hates new car smell.
I do not like it at all.
Ryan Nelson (02:53):
Wow, that's interesting.
Well, I think you know if youthink of new cars for me I mean
just debt in general and if justwatch any new car commercial,
the new car commercials are notselling you the latest features
and look at how cool it looksand they're not selling you like
the most aerodynamic this andthe nice radio there.
That's not any commercial.
(03:14):
You see Every commercial andevery new car commercial.
You see that's advertising.
A car is all about what otherpeople will think of you driving
that car.
That's what it's all about andthat's debt in general.
So I think new cars and evenused cars to some degree,
whatever car, people overspendon it.
My son is in auto sales.
(03:34):
He tells me horror stories allthe time and people buy it
because they want to lookimportant.
They want to look like they'resomebody and that's what a lot
of it is about.
Deep down, people won't admitit.
I didn't want to admit it whenI used to do it.
I remember buying a certain carthat looked like a Mercedes,
(03:55):
even though it wasn't a Mercedes.
But I wanted it because Icouldn't afford a Mercedes, but
I wanted it to look like aMercedes because I wanted to
look important.
That's the only reason I wanted.
I didn't even like the car, butit looked like something that
somebody maybe important woulddrive.
So that's why I got it and it'sjust.
I can admit that now, but backin the day I would never admit
that I would have went to mygrave saying I gotta have it for
(04:17):
all these reasons.
At the end of the day, thereason was because I wanted to
feel like I was somebody in itand that I was successful and
that other people would see methe way I see myself driving it.
And reality is nobody cares.
I hate to break it to you, butnobody cares.
I don't care that you have acool car and you're sitting next
to me at the stoplight.
I literally don't give it asecond thought, and most people
(04:38):
don't either.
Brad Nelson (04:39):
But it's amazing how much we think they do yes.
Kati Hatfield (04:43):
Yes, because you're going to be as cool as
Matthew McConaughey, who cansell anybody a car just by
looking cool, driving it aroundand talking about it.
Ryan Nelson (04:52):
In my Lincoln.
Brad Nelson (04:54):
That's right.
What about the other argument,though, that new cars are a good
option because of safety andreliability?
And we're going to get intothis a little bit.
What about the warranty?
Safety and reliability?
Or and we're going to get intothis a little bit what about the
warranty?
I mean, that's usually a bigargument among people is that,
you know, and that's what makescars, I guess, or new cars, more
ideal is because, again, theyhave the latest safety features,
they're reliable.
(05:15):
You're buying a new car, you'renot buying somebody else's
problems.
And then, of course, if the cardoes have any issues, they kick
in that warranty.
They kick in that warranty, youknow.
And for someone, again, whomight be living paycheck to
paycheck or money's a little bittight, they might think in
their mind that that's the bestoption for them, because if
anything does happen to that car, they don't have to worry about
repairs, they don't have toworry about maintenance and all
that stuff.
Everything's going to be prettymuch taken care of, because
(05:37):
it's a new car, I mean outsideof oil changes and things like
that.
So, like, what about someonewho argues that?
Ryan Nelson (05:43):
They're full of crap.
And I don't mean to be, I'm nottrying to be, so I'm going to
throw myself out there right now.
My son just got a car.
He bought himself a car.
He's been saving.
He bought himself a car.
He has an older car.
I hate it, I don't like it, butwe bought it because it's like
(06:07):
four grand, you know, on themarket.
If I would have buy it usedlike on facebook because I went
on facebook for the show as wellprobably would have paid around
five grand for it.
So we got it for four grandbecause that's what they were
going to give him, for it's fourthousand dollars.
Is it fancy?
Is it awesome?
No, but it's paid for.
And I think that this is thepart where I think people just
get caught up in.
(06:28):
We'll make us, we'll makeexcuses on a lot of stuff and
we'll make them a mile long,we'll make all the reasons, but
at the end of the day, this hasa crappy backup camera,
(07:07):
no-transcript.
You know, back when we weregrowing up, cars weren't made to
last like they do now.
There's still, I think, thisfalse perception that when a car
gets to 100, 125,000 milesmiles, you got to get something
new because it's going to fallapart, but most of them are
built for a long time.
And then a lot of people willpull out their horror stories of
like, well, I bought a used caronce and I'm the engine blew up
(07:29):
and I'll never do that again.
It's like I get it, but thatdoesn't happen often.
I'm not saying it doesn'thappen, but I just think it's
hard for people to again.
Like you said, people are tiedto this.
It's hard for people to again,like you said, people are tied
to this.
It's very, very difficultconversation, because I used to
be this too.
You would have never convincedme to not buy we didn't buy new,
(07:51):
but we bought fairly new andyou wouldn't have convinced me
to not have a car payment forall these reasons, warranty, all
this stuff but we bought usedfor a long time now and I've not
had big issues like that.
Brad Nelson (08:04):
No, and you're telling me you bought a four
thousand dollar car, it's got abackup camera.
That's pretty sweet.
I was very impressed with thatbut?
Ryan Nelson (08:13):
but let me tell you , like I said, I went on
facebook marketplace because Ithink this is the thing people
will argue that you're nevergoing to find a car.
His car, it's a Kia Forte.
It's nothing special but hisyear 2016,.
Go look at a Kia Forte 2016 onFacebook marketplace.
I found them anywhere from fivegrand to like seven grand, with
anywhere from 90,000 to 130,140,000 miles.
(08:36):
So you can tell me all day longthat you can't find things that
are affordable.
A car with 90,000 miles on it?
Yeah.
Is it guaranteed that it'staken care of?
No, but get it checked out, doall your homework, make sure
it's all right.
You could get a car for five,six grand.
Is it awesome?
No, I'm not saying I lovedriving it, don't get me wrong.
(08:57):
I drive it and I'm like I don'tlove it, but it gets me from
point.
Chris Hawkins (09:07):
A to point B and I don't have a payment and I
don't have all this money tiedup in something, you could have
a fairly new, if not dang nearnew, car within three years.
That is safe, that's reliable,that's got all the nice safety
features and you never borrowedmoney to pay the bank for it,
never borrowed money to pay thebank for it, and at this point
you've got a fairly new car.
If you keep saving for, say,the next seven or eight years,
you've got a car replacementfund.
Who cares?
(09:27):
At that point you can go outand buy a brand new car if you
felt like it.
Right, it's all about themindset and it's all about using
the math in a different way andunfortunately, the car
manufacturers and the banks haverigged this game to convince us
that we always need a carpayment.
That's the only way to buy acar, and sure they throw in the
safety features and thereliability and warranty.
(09:50):
When in fact, you're telling methat you bought a car three
years ago, I'm guessing youhaven't had to put a whole lot
of money into it and continue tosave that money for a number of
years to create a fund thatcould replace your cars for life
.
It's all about looking atthings from a different
perspective, and that goes backto educating yourself and using
(10:11):
the math in a way that works foryou, not in a way that works
for the bank.
Brad Nelson (10:15):
Yeah Well, I think it's the mindset of instead of
making the payment to the bank,make the payment to yourself,
correct?
You know, pay cash for a car,get started somewhere and then
in a year or two, you canupgrade to the next one.
I think this is where so manypeople who buy new cars just
have like, yes, you're buying anew car, it's great, it's
awesome that you have a new car.
But what you tend to forgetabout, people make the argument
(10:47):
well, I don't want to makerepairs on an older car, so I
want to save that money.
I'm going to buy a newer car.
But what they tend to forgetabout is the depreciation.
The average depreciation on anew car is 30% in the first year
and 60% or more after the firstfive years, which is insane.
So, for instance, with anaverage new car price right now
of $49,740, which, by the way,is crazy to me the first year
depreciation could be almost$15,000 in the first year.
That means, on average, you'relosing over $1,000 a month in
(11:12):
value on that car.
Not only that, but you're beingcharged an average of $740,
$750 a month for the payment onthat car.
And that's if you've got adecent interest rate.
Right, a lot of people yourcredit may be bad.
You're not getting a reallygood interest rate, so you got
to think about like how much.
And in those first five yearsyou could lose upwards of nearly
(11:33):
$30,000 in value owning thatbrand new car.
So a lot of people say repairsare expensive.
Depreciation is way moreexpensive, and that's the part
that just fascinates me thatpeople don't see the
depreciation on the new vehicle.
And again, if you're someoneout there who's comfortable
making a car payment, you're notliving paycheck to paycheck.
This argument's not towards you.
(11:54):
This is towards the personwho's constantly stressing that
they're broke, they don't haveany money, they're living
paycheck to paycheck, but yetthen they have one of these car
payments.
It's like the problem is likelyin your garage or driveway.
That's just my feeling.
Kati Hatfield (12:09):
I'm going to throw myself under the bus,
because I did this and I had aone-year-old car, brand new,
that I traded in for a biggercar.
So bigger cars are usually moreexpensive and that was the
newest car model that year and Iwas all ready to sign at the
price I wanted.
And then it was.
(12:30):
I just wanted to make sure ithas seat warmers right.
And he's like no, that's thebase model.
You have to go up a model, I'mlike.
But I live in wisconsin, sothose are and I'm over 40.
So they're necessary.
And the base model did not havethe blinker, the blind spot
(12:51):
indicators.
So that was.
I'm like shouldn't that be likethe base level safety standard,
like for new cars these days?
So it made me so mad because Ihad to pay more money, because
he had already roped me in and,yeah, I lost so much
depreciation and I knew I waskicking myself so hard.
And I did it and learned frommy mistakes, because I'm still
(13:13):
paying for that and I'm going todrive this car into the ground
with 500,000 miles on it orwhatever, but I'm not ever
having a payment again afterthis.
Chris Hawkins (13:23):
And so that's the key.
I mean, we don't buy cars veryoften at all.
I hate, it's the most miserableexperience dealing with car
dealerships.
Brad Nelson (13:32):
I'm with you.
Chris Hawkins (13:34):
I'd rather have a root canal with no Novocaine,
but you do have to buy cars fromtime to time, and sometimes
it's either a dealership or aprivate seller, and, generally
speaking, I think about everyother car at this point.
We buy a brand new one and thenwe buy a good, reliable used
car.
Again, that's not very often,because it goes back to what
(13:54):
Katie said If you want to beatthe depreciation, keep the car
for a long time, a long time.
But what I would say is this iswe've been doing this for 20
years.
All right, we've been out ofdebt for a long time.
We can save money and pay cashfor things.
So we're in a position where wecan afford to take the
(14:16):
depreciation hit.
But it's not as much of a hitwhen you own the car for 150,
180, 200,000 miles, okay.
So you really have to thinkabout.
You're right, brad,depreciation will kill you.
But if you certainly do buy anew car, keep it for a long time
.
Yeah Right, Otherwise you'regoing to be the sucker that
turns around and sells that carfive years later for $20,000.
(14:38):
And you turn around and haveanother payment for another
brand new car and you're goingto have $750 car payments for
the rest of your life.
And somebody like me is goingto buy that car at five years
old from 20 for $20,000 and keepit for another 10 years and
only have spent $20,000 for acar that I got 10 years use out
of, whereas you spent $30,000plus all the payments for a car
(15:00):
that you drove for five years.
I hope that made sense.
Brad Nelson (15:02):
Yeah, yeah for sure .
Well, I think the other issueis too.
I mean, as we're recording this, it's 2025, and we all know
what happened during COVID, whencar prices were just hugely
inflated and there was atremendous amount of people who
are really upside down because,you know, they were selling over
sticker price and they're in areally tough spot and a lot of
people can't even refinancebecause they're so upside down.
The banks aren't going to takeon that risk.
(15:24):
They're not going to take thaton.
A lot of people are stuck inthose types of situations, so
you really got to be careful.
I remember when I got out ofdebt and this is why I'm so
passionate about this wholesubject, because it keeps people
so stuck, they're just so stuckin this new car thing but I got
rid of a brand new car.
It was brand new when I boughtit.
It wasn't brand new, obviously,when I got rid of it, but it
was nearly a couple years old.
(15:44):
And I bought myself a 1996Toyota Corolla and I remember I
went back and did thecalculation on how much it cost
me to own, repair and maintainthat vehicle for four years.
On average it was $80 somedollars a month.
Like $85 a month is what it wascosting me.
That was for what I paid for itthe maintenance, the insurance
and the gas.
(16:04):
And that's the other thing alot of people they forget about
with a brand new car is thatyour insurance policies,
especially if you're younger,are going to be much higher on a
newer car than, say, somethingthat's used.
So that's the other thing yougot to be cognizant of.
In fact, they actually releasedstatistics AAA total ownership
costs.
It's not just about, obviously,the monthly payment but,
according to AAA, the averageannual cost to own and operate a
(16:26):
new vehicle in 2024, obviously,as we're recording this, it's
2025, was $10,728.
So almost $900 a month whenfactoring in things like your
gas, your maintenance, yourdepreciation insurance and your
borrowing costs.
So, again, if you're someoneagain who is living paycheck to
paycheck, you're struggling withsaving, you're struggling with
getting out of debt.
(16:47):
That is such a huge burden onyour cash flow every month and
the people that are able to makethe transition from going to
that big of a car payment ormaybe to a lesser car payment or
no car payment at all.
I mean it makes such a hugedifference in what you're able
to do monthly with that newmoney right and being able to
save, get out of debt, pay offother debt.
If so, many people wouldconsider even getting rid of
(17:08):
just one new car payment,because a lot of families have
two of these.
And guys, the crazy thing aboutthis, this is insane of these.
And guys, the crazy thing aboutthis, this is insane.
20% of people now have a carpayment over $1,000 a month and
the terms are getting that muchlonger because obviously a lot
of people can't afford 60 monthsanymore.
So now they're on to the sixyears, the seven years, the
eight, the nine year terms,right, and the only reason
(17:29):
they're doing that is becausepeople can't afford the payments
on those shorter terms.
So they extend the term out,the interest, like you're paying
even more on interest in theservicing of that loan.
So these are all things just toconsider if you're in one of
these payments.
Kati Hatfield (17:41):
As a woman going into a car dealership, I hate to
say this.
But take your mechanic with youif you're going to go get a
used car, because they are goingto tell you an honest
evaluation of what yourmaintenance costs are going to
be versus a new car.
I've had several greatmechanics over the years who
(18:03):
were just honest, trustworthy.
They're not going to just tryto sell me something.
They're like this car has thiskind of issue.
It's a known thing.
I deal with this all the time.
Don't get that kind of car.
So yeah, those are just sometips and I would never take my
father.
He also used to be a used carsalesman and he always ends up
with the most expensive car.
(18:23):
So I'm like I'm not taking youdad, I want to save money when I
get out of the dealership, I'mtaking somebody else that's
going to save me money.
Chris Hawkins (18:32):
I think the big thing is for most of you who are
listening to this podcast andwe always have to remember
there's a wide range of peoplewho listen in various parts of
their journey but Brad isabsolutely correct, and that is
that your car payment isprobably a large reason why
you're struggling financially.
And if you want to do somethingdifferent and you want to try
(18:57):
something different because whatyou've been doing is not
working, give it a try gettingrid of one or both or three or
however many new cars or carpayments that you have.
Try buying, like Ryan did, agood, reliable used car.
Okay, even eight, 10 years old,if you have to, because it's
only temporary.
(19:17):
We're not asking you to do thisfor the rest of your life.
You possibly could, but whatwe're suggesting is try
something different.
There's a scene in the movieDays of Thunder that I like to
tell people about all the timeIn that movie he's learning how
to drive stock cars after havingdriven Indy cars, and they're
(19:38):
set up differently.
They have different size tiresand he keeps blowing the tires,
and so there's a scene wherethey're talking about his crew
chief is saying listen, you'reused to driving Indy cars, let's
go out here and I want you torun 50 laps the way that you
want to run them.
And I want you to run 50 lapsthe way that you want to run
them.
And I want you to run 50 lapsthe way I want you to run them a
different way.
And I bet you, at the end ofthe day, the speed running
(20:02):
things the way I want you to dothem, you're going to be faster
and sure enough, that's the case, and the moral of the story is
if what you've been doing isn'tworking, let's try something
different.
Okay, it's not going to hurt.
You Get rid of a car or carpayment.
If you need to Reduce your carpayment, if that's what you need
to do To free up the cash toallow you to start doing some
(20:23):
different things, such as, youknow, pay off your car loans,
credit card debts and otherthings and I think you're going
to find over the long term, thatthat pain is only temporary and
you'll get to the point whereyou can save money to then start
going out and buying good,reliable used cars, or even 20
years.
Down the road, like I've beenable to do is, every now and
then, splurge on a brand new car, keep it forever and not let
(20:47):
the depreciation kill you.
But you've just got to put intoperspective where am I at in my
journey and what are my goalsand what is it that I want to
accomplish.
Brad Nelson (21:01):
And I promise you getting rid of that car payment
is going to help a lot.
Yeah, I guess my last thoughttoo, I want to just add is that
it's the opportunity costs ofthat as well.
Now I get that we're big, hugecar nut people like that.
You love your new car, but thenumber one reason why people
(21:27):
don't get approved for mortgagesin this country is because of
high car payments.
That's the number one reasonthey're not getting approved.
So you got to ask yourselfkeeping you from buying a home
and getting into real estate?
I mean, that's a huge tradeoff.
So that's something to consideris that if you're someone who
wants to buy a home, get intoreal estate, you want to start
building wealth.
Just these massive car paymentsfor most people it's going to
(21:52):
keep you stuck.
Ryan Nelson (21:53):
And also what's the emotional cost of that?
Because I think the big thingyou always hear people talk
about is you don't ever seesomeone that's got this kind of
car with a frown on his face.
It's like, yeah, when he'sdriving it, sure no, but 90% of
the time when he's not drivingit and things are miserable and
you're fighting and you'rearguing and it's financial
stress.
That's what you're paying for.
(22:14):
It's not just paying for thecar, you're paying for it in all
those other ways, like we usedto do, and it's just.
We could well afford the $750car payment if I wanted to.
We go do it right now.
I mean, would it have an impacton our budget?
Sure, could I do it?
Yes, but it's like I don't wantto make that trade off.
I don't want to have thatstress in my life and all that
(22:35):
extra expense and, like you said, insurance.
Like I carry liability.
It's dirt cheap to keep thiscar as opposed to a brand new
car, full coverage, all thatother stuff that goes with it.
Right, like I just don't wantthat in my life.
So I mean this isn't like toshame people about buying new
cars or this or that, it's just.
I think, what you have toreally ask yourself is why, the
(22:56):
end of the day, if you reallyhave a heart to heart with
yourself, why is this car soimportant to you?
Right, you know, and for me itwas all superficial reasons, and
I think if you can get pastthat and be honest with yourself
as to why this car is importantto you, you can be super honest
.
I think a lot of us wouldrealize that it doesn't a lot of
times have anything to do withus and the need for this certain
vehicle.
(23:16):
It's just this need to belooked at in the way we want
people to look at us.
I used to have a truck.
I don't have a truck anymore.
I had the truck.
It looked awesome.
At the end of the day, it'slike everybody said it probably
never seen dirt.
It didn't Most of the cars thatlook like most of the trucks
dirt.
It didn't Most of the cars thatlook like most of the trucks.
They don't ever take themoff-road, they just look a
certain way.
Because you want to have thisperception of that's what it is,
(23:36):
and I think you just have to behonest with yourself Before you
go spend $50,000 on thisamazing off-road thing or
whatever it might be.
What's the reality?
That you're really going to dothat and if you can afford it.
We do have one nice car that wepaid cash for, kind of like you
said, chris, over the yearswe've upgraded.
We have one nice car, but wecan afford to have that.
(23:56):
But if you really can't affordit and you're having these huge
car payments, just be honestwith yourself.
It's a thing you want otherpeople to see you for, that's
all, and I think if you just getpast that, you're going to save
so much money.
You'll be amazed how, how fastyour finances can improve if you
just get over that.
Chris Hawkins (24:12):
So, ryan, you mentioned the word afford about
10 times in the two or threeminutes that you were talking.
For those of you out there,what we're suggesting is this we
want to help you get away fromthinking of afford as can I make
the monthly payments Right, andwe want to get you to the point
in your life where, when youask, can I afford it, what you
(24:34):
mean is do I have enough moneyin the bank to pay cash for this
car.
That's a big, big mindsetchange, one that I think is
extremely worth it.
Ryan Nelson (24:45):
Yeah, for sure.
Brad Nelson (24:46):
Yeah, and it's like you said, ryan, I don't want
people to feel like this episodewas to shame people.
It really is just to bringawareness to this, because it is
such a thing that for a lot ofus, it's so ingrained in us that
you always have to have a carpayment, you always have to have
a new car, and for a lot ofpeople, they don't realize how
much that mentality is keepingthem stuck.
Kept me stuck, kept a lot of usstuck, and once you get out of
it, it just makes such a hugedifference in your overall
(25:09):
ability to improve your finances, get out of debt, save more
money, reduce stress.
It is a game changer, noquestion.
All right, guys, if you'reready to break free from living
paycheck to paycheck, you wantto reduce financial stress.
You want to build savings andfinally pay off debt for good.
But maybe you're not sure whereto start.
Don't worry, we've got youcovered.
Simplify my Money is sent to youeach Sunday to your email.
(25:29):
Simplify your Money is astep-by-step roadmap to better
financial control, and you'llalso learn easy-to-follow
strategies to manage your moneyeffectively.
It's stress-free moneydecisions that will help you
simplify your financial lifewith proven tips that actually
work, and you're going to gainthe tools and the confidence to
tackle your financial goalshead-on.
You can sign up for Simplify myMoney by clicking the link at
(25:52):
the top of the show.
Notes B let's talk about debt.
Let's talk about debt.
Tune into Debt Free Debt.
Tune into Debt Free Debt.
(26:18):
All right guys.
That song means it's time forthe celebrations of the show,
and today we are kicking offwith Hillary.
Hillary says I was able to payan extra $100 towards my lowest
credit card.
Small steps.
I also completed week numberthree inside Roots.
Hillary, congratulations,awesome win.
Chris Hawkins (26:38):
And Heather says I joined on January 15th of 2025
and have already paid onecredit card off, have $800 in
the first emergency fund and I'mdoing it all on a single income
.
It can be done.
Keep pushing forward everyone.
Brad Nelson (26:59):
Yeah, and that's incredible.
And, by the way, the day we'rerecording this is February 11th,
so that's less than a monththat she's made that progress.
That's incredible, awesome job.
Kati Hatfield (27:07):
Yeah, Way to go, Heather.
And then Jim found a mealprepping website that plans 20
freezer meals and each one hasfour servings.
As a single person, that's 80meals in his freezer and that
puts a major dent in eating outand apparently Jim door dashes.
So way to go, Jim.
That is going to save you a lotof money.
Ryan Nelson (27:29):
And Melinda.
Thanks to having our emergencyfund, we were able to pay for
our dryer to be repaired withcash, and now we just need to
save that money back into ouremergency fund.
Brad Nelson (27:39):
Awesome job, hey guys.
As always, congratulations toall of you guys who are taking a
stand for your financial lifeand are wanting better.
Hey, we get that getting out ofdebt isn't easy, but with our
help and with your consistencyand discipline, we promise you
guys, this will be some of thebest work that you guys do in
your entire life.
Thanks for joining us ontoday's show and we will see you
guys on the next episode.
Announcer (28:04):
Thanks for listening to the Debt-Free Dad podcast.
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We so appreciate it Forresources, show notes and links
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Visit DebtFreeDadcom.
(28:24):
Catch you next week.
Hey, nothing sparks a debate like the topic of
buying a new car.
It's exciting, it's shiny and,let's be honest, that new car
smell is pretty awesome.
But is it actually a smartfinancial move or is it just a
money trap in disguise?
Now today on the Debt-Free DadPodcast, we're breaking down the
real cost of new cars, fromsky-high payments to massive
(00:24):
depreciation, and how they couldbe holding you back from
financial freedom.
Now, if you're thinking aboutupgrading your ride, this
episode is a must-listen beforeyou make a decision that could
cost you thousands.
Announcer (00:38):
You're listening to the Debt-Free Dad podcast with
Brad Nelson.
Brad and his co-hostsexperience the anxiety of living
paycheck to paycheck beforelearning the fundamentals of
financial success.
They are now on a mission toempower regular people to pay
off their debt for good andenjoy happier, less stressful
lives.
Keep listening forinspirational interviews, tips,
(01:00):
tricks and practical advice togain financial freedom tips
tricks and practical advice togain financial freedom.
Brad Nelson (01:11):
Hey guys, I'm Brett Nelson, founder of Debt Free
Debt.
I paid off about $45,000 indebt.
I've been debt free now formore than 12 years.
I've also been fortunate tohelp thousands of other people
save and pay off tens ofmillions of dollars with the
work that we do here at DebtFree Debt.
Chris Hawkins (01:21):
And my name is Chris.
We started our financialjourney 20 years ago, 2005.
And from 2005 to 2008, we paidoff just under $100,000 worth of
debt, and we haven't had apayment, except for our house,
since then.
Kati Hatfield (01:37):
And I'm Katie, and over the last six and a half
years I have paid off over$200,000 in debt on a single
income.
Ryan Nelson (01:45):
And my name is Ryan Nelson.
My wife and I off over $200,000in debt on a single income.
And my name is Ryan Nelson.
Brad Nelson (01:50):
My wife and I paid off $160,000 over eight years
while we were raising three kids.
All right, guys.
Now, after listening to thisepisode, if you're someone who's
ready to take things to thenext level, you're ready to
break free from living paycheckto paycheck, you want to reduce
financial stress, you want tobuild more savings and finally
pay off that debt for good.
But maybe you're not quite surewhere to get started.
We've created some incrediblefree resources here at Debt Free
Dad to help you get there, andwe'll be sharing some details
about how you get started withthat later on in today's episode
(02:13):
.
So, guys, the new car debate howmany episodes have we done
about new cars?
I think we've only done one,maybe two, and the show's been
on now for our fifth season,fifth year over 300 episodes.
But, man, this thing getspeople stirred up more than
anything.
Is this whole new car versusused car?
Man, people just get so angryabout their car.
(02:36):
So the first thing I want tojust ask is like why the heck do
we love new cars so much herein the United States?
Kati Hatfield (02:44):
They're shiny and pretty and they're clean, but I
actually am one of the peoplewho hates new car smell.
I do not like it at all.
Ryan Nelson (02:53):
Wow, that's interesting.
Well, I think you know if youthink of new cars for me I mean
just debt in general and if justwatch any new car commercial,
the new car commercials are notselling you the latest features
and look at how cool it looksand they're not selling you like
the most aerodynamic this andthe nice radio there.
That's not any commercial.
(03:14):
You see Every commercial andevery new car commercial.
You see that's advertising.
A car is all about what otherpeople will think of you driving
that car.
That's what it's all about andthat's debt in general.
So I think new cars and evenused cars to some degree,
whatever car, people overspendon it.
My son is in auto sales.
(03:34):
He tells me horror stories allthe time and people buy it
because they want to lookimportant.
They want to look like they'resomebody and that's what a lot
of it is about.
Deep down, people won't admitit.
I didn't want to admit it whenI used to do it.
I remember buying a certain carthat looked like a Mercedes,
(03:55):
even though it wasn't a Mercedes.
But I wanted it because Icouldn't afford a Mercedes, but
I wanted it to look like aMercedes because I wanted to
look important.
That's the only reason I wanted.
I didn't even like the car, butit looked like something that
somebody maybe important woulddrive.
So that's why I got it and it'sjust.
I can admit that now, but backin the day I would never admit
that I would have went to mygrave saying I gotta have it for
(04:17):
all these reasons.
At the end of the day, thereason was because I wanted to
feel like I was somebody in itand that I was successful and
that other people would see methe way I see myself driving it.
And reality is nobody cares.
I hate to break it to you, butnobody cares.
I don't care that you have acool car and you're sitting next
to me at the stoplight.
I literally don't give it asecond thought, and most people
(04:38):
don't either.
Brad Nelson (04:39):
But it's amazing how much we think they do yes.
Kati Hatfield (04:43):
Yes, because you're going to be as cool as
Matthew McConaughey, who cansell anybody a car just by
looking cool, driving it aroundand talking about it.
Ryan Nelson (04:52):
In my Lincoln.
Brad Nelson (04:54):
That's right.
What about the other argument,though, that new cars are a good
option because of safety andreliability?
And we're going to get intothis a little bit.
What about the warranty?
Safety and reliability?
Or and we're going to get intothis a little bit what about the
warranty?
I mean, that's usually a bigargument among people is that,
you know, and that's what makescars, I guess, or new cars, more
ideal is because, again, theyhave the latest safety features,
they're reliable.
(05:15):
You're buying a new car, you'renot buying somebody else's
problems.
And then, of course, if the cardoes have any issues, they kick
in that warranty.
They kick in that warranty, youknow.
And for someone, again, whomight be living paycheck to
paycheck or money's a little bittight, they might think in
their mind that that's the bestoption for them, because if
anything does happen to that car, they don't have to worry about
repairs, they don't have toworry about maintenance and all
that stuff.
Everything's going to be prettymuch taken care of, because
(05:37):
it's a new car, I mean outsideof oil changes and things like
that.
So, like, what about someonewho argues that?
Ryan Nelson (05:43):
They're full of crap.
And I don't mean to be, I'm nottrying to be, so I'm going to
throw myself out there right now.
My son just got a car.
He bought himself a car.
He's been saving.
He bought himself a car.
He has an older car.
I hate it, I don't like it, butwe bought it because it's like
(06:07):
four grand, you know, on themarket.
If I would have buy it usedlike on facebook because I went
on facebook for the show as wellprobably would have paid around
five grand for it.
So we got it for four grandbecause that's what they were
going to give him, for it's fourthousand dollars.
Is it fancy?
Is it awesome?
No, but it's paid for.
And I think that this is thepart where I think people just
get caught up in.
(06:28):
We'll make us, we'll makeexcuses on a lot of stuff and
we'll make them a mile long,we'll make all the reasons, but
at the end of the day, this hasa crappy backup camera,
(07:07):
no-transcript.
You know, back when we weregrowing up, cars weren't made to
last like they do now.
There's still, I think, thisfalse perception that when a car
gets to 100, 125,000 milesmiles, you got to get something
new because it's going to fallapart, but most of them are
built for a long time.
And then a lot of people willpull out their horror stories of
like, well, I bought a used caronce and I'm the engine blew up
(07:29):
and I'll never do that again.
It's like I get it, but thatdoesn't happen often.
I'm not saying it doesn'thappen, but I just think it's
hard for people to again.
Like you said, people are tiedto this.
It's hard for people to again,like you said, people are tied
to this.
It's very, very difficultconversation, because I used to
be this too.
You would have never convincedme to not buy we didn't buy new,
(07:51):
but we bought fairly new andyou wouldn't have convinced me
to not have a car payment forall these reasons, warranty, all
this stuff but we bought usedfor a long time now and I've not
had big issues like that.
Brad Nelson (08:04):
No, and you're telling me you bought a four
thousand dollar car, it's got abackup camera.
That's pretty sweet.
I was very impressed with thatbut?
Ryan Nelson (08:13):
but let me tell you , like I said, I went on
facebook marketplace because Ithink this is the thing people
will argue that you're nevergoing to find a car.
His car, it's a Kia Forte.
It's nothing special but hisyear 2016,.
Go look at a Kia Forte 2016 onFacebook marketplace.
I found them anywhere from fivegrand to like seven grand, with
anywhere from 90,000 to 130,140,000 miles.
(08:36):
So you can tell me all day longthat you can't find things that
are affordable.
A car with 90,000 miles on it?
Yeah.
Is it guaranteed that it'staken care of?
No, but get it checked out, doall your homework, make sure
it's all right.
You could get a car for five,six grand.
Is it awesome?
No, I'm not saying I lovedriving it, don't get me wrong.
(08:57):
I drive it and I'm like I don'tlove it, but it gets me from
point.
Chris Hawkins (09:07):
A to point B and I don't have a payment and I
don't have all this money tiedup in something, you could have
a fairly new, if not dang nearnew, car within three years.
That is safe, that's reliable,that's got all the nice safety
features and you never borrowedmoney to pay the bank for it,
never borrowed money to pay thebank for it, and at this point
you've got a fairly new car.
If you keep saving for, say,the next seven or eight years,
you've got a car replacementfund.
Who cares?
(09:27):
At that point you can go outand buy a brand new car if you
felt like it.
Right, it's all about themindset and it's all about using
the math in a different way andunfortunately, the car
manufacturers and the banks haverigged this game to convince us
that we always need a carpayment.
That's the only way to buy acar, and sure they throw in the
safety features and thereliability and warranty.
(09:50):
When in fact, you're telling methat you bought a car three
years ago, I'm guessing youhaven't had to put a whole lot
of money into it and continue tosave that money for a number of
years to create a fund thatcould replace your cars for life
.
It's all about looking atthings from a different
perspective, and that goes backto educating yourself and using
(10:11):
the math in a way that works foryou, not in a way that works
for the bank.
Brad Nelson (10:15):
Yeah Well, I think it's the mindset of instead of
making the payment to the bank,make the payment to yourself,
correct?
You know, pay cash for a car,get started somewhere and then
in a year or two, you canupgrade to the next one.
I think this is where so manypeople who buy new cars just
have like, yes, you're buying anew car, it's great, it's
awesome that you have a new car.
But what you tend to forgetabout, people make the argument
(10:47):
well, I don't want to makerepairs on an older car, so I
want to save that money.
I'm going to buy a newer car.
But what they tend to forgetabout is the depreciation.
The average depreciation on anew car is 30% in the first year
and 60% or more after the firstfive years, which is insane.
So, for instance, with anaverage new car price right now
of $49,740, which, by the way,is crazy to me the first year
depreciation could be almost$15,000 in the first year.
That means, on average, you'relosing over $1,000 a month in
(11:12):
value on that car.
Not only that, but you're beingcharged an average of $740,
$750 a month for the payment onthat car.
And that's if you've got adecent interest rate.
Right, a lot of people yourcredit may be bad.
You're not getting a reallygood interest rate, so you got
to think about like how much.
And in those first five yearsyou could lose upwards of nearly
(11:33):
$30,000 in value owning thatbrand new car.
So a lot of people say repairsare expensive.
Depreciation is way moreexpensive, and that's the part
that just fascinates me thatpeople don't see the
depreciation on the new vehicle.
And again, if you're someoneout there who's comfortable
making a car payment, you're notliving paycheck to paycheck.
This argument's not towards you.
(11:54):
This is towards the personwho's constantly stressing that
they're broke, they don't haveany money, they're living
paycheck to paycheck, but yetthen they have one of these car
payments.
It's like the problem is likelyin your garage or driveway.
That's just my feeling.
Kati Hatfield (12:09):
I'm going to throw myself under the bus,
because I did this and I had aone-year-old car, brand new,
that I traded in for a biggercar.
So bigger cars are usually moreexpensive and that was the
newest car model that year and Iwas all ready to sign at the
price I wanted.
And then it was.
(12:30):
I just wanted to make sure ithas seat warmers right.
And he's like no, that's thebase model.
You have to go up a model, I'mlike.
But I live in wisconsin, sothose are and I'm over 40.
So they're necessary.
And the base model did not havethe blinker, the blind spot
(12:51):
indicators.
So that was.
I'm like shouldn't that be likethe base level safety standard,
like for new cars these days?
So it made me so mad because Ihad to pay more money, because
he had already roped me in and,yeah, I lost so much
depreciation and I knew I waskicking myself so hard.
And I did it and learned frommy mistakes, because I'm still
(13:13):
paying for that and I'm going todrive this car into the ground
with 500,000 miles on it orwhatever, but I'm not ever
having a payment again afterthis.
Chris Hawkins (13:23):
And so that's the key.
I mean, we don't buy cars veryoften at all.
I hate, it's the most miserableexperience dealing with car
dealerships.
Brad Nelson (13:32):
I'm with you.
Chris Hawkins (13:34):
I'd rather have a root canal with no Novocaine,
but you do have to buy cars fromtime to time, and sometimes
it's either a dealership or aprivate seller, and, generally
speaking, I think about everyother car at this point.
We buy a brand new one and thenwe buy a good, reliable used
car.
Again, that's not very often,because it goes back to what
(13:54):
Katie said If you want to beatthe depreciation, keep the car
for a long time, a long time.
But what I would say is this iswe've been doing this for 20
years.
All right, we've been out ofdebt for a long time.
We can save money and pay cashfor things.
So we're in a position where wecan afford to take the
(14:16):
depreciation hit.
But it's not as much of a hitwhen you own the car for 150,
180, 200,000 miles, okay.
So you really have to thinkabout.
You're right, brad,depreciation will kill you.
But if you certainly do buy anew car, keep it for a long time
.
Yeah Right, Otherwise you'regoing to be the sucker that
turns around and sells that carfive years later for $20,000.
(14:38):
And you turn around and haveanother payment for another
brand new car and you're goingto have $750 car payments for
the rest of your life.
And somebody like me is goingto buy that car at five years
old from 20 for $20,000 and keepit for another 10 years and
only have spent $20,000 for acar that I got 10 years use out
of, whereas you spent $30,000plus all the payments for a car
(15:00):
that you drove for five years.
I hope that made sense.
Brad Nelson (15:02):
Yeah, yeah for sure .
Well, I think the other issueis too.
I mean, as we're recording this, it's 2025, and we all know
what happened during COVID, whencar prices were just hugely
inflated and there was atremendous amount of people who
are really upside down because,you know, they were selling over
sticker price and they're in areally tough spot and a lot of
people can't even refinancebecause they're so upside down.
The banks aren't going to takeon that risk.
(15:24):
They're not going to take thaton.
A lot of people are stuck inthose types of situations, so
you really got to be careful.
I remember when I got out ofdebt and this is why I'm so
passionate about this wholesubject, because it keeps people
so stuck, they're just so stuckin this new car thing but I got
rid of a brand new car.
It was brand new when I boughtit.
It wasn't brand new, obviously,when I got rid of it, but it
was nearly a couple years old.
(15:44):
And I bought myself a 1996Toyota Corolla and I remember I
went back and did thecalculation on how much it cost
me to own, repair and maintainthat vehicle for four years.
On average it was $80 somedollars a month.
Like $85 a month is what it wascosting me.
That was for what I paid for itthe maintenance, the insurance
and the gas.
(16:04):
And that's the other thing alot of people they forget about
with a brand new car is thatyour insurance policies,
especially if you're younger,are going to be much higher on a
newer car than, say, somethingthat's used.
So that's the other thing yougot to be cognizant of.
In fact, they actually releasedstatistics AAA total ownership
costs.
It's not just about, obviously,the monthly payment but,
according to AAA, the averageannual cost to own and operate a
(16:26):
new vehicle in 2024, obviously,as we're recording this, it's
2025, was $10,728.
So almost $900 a month whenfactoring in things like your
gas, your maintenance, yourdepreciation insurance and your
borrowing costs.
So, again, if you're someoneagain who is living paycheck to
paycheck, you're struggling withsaving, you're struggling with
getting out of debt.
(16:47):
That is such a huge burden onyour cash flow every month and
the people that are able to makethe transition from going to
that big of a car payment ormaybe to a lesser car payment or
no car payment at all.
I mean it makes such a hugedifference in what you're able
to do monthly with that newmoney right and being able to
save, get out of debt, pay offother debt.
If so, many people wouldconsider even getting rid of
(17:08):
just one new car payment,because a lot of families have
two of these.
And guys, the crazy thing aboutthis, this is insane of these.
And guys, the crazy thing aboutthis, this is insane.
20% of people now have a carpayment over $1,000 a month and
the terms are getting that muchlonger because obviously a lot
of people can't afford 60 monthsanymore.
So now they're on to the sixyears, the seven years, the
eight, the nine year terms,right, and the only reason
(17:29):
they're doing that is becausepeople can't afford the payments
on those shorter terms.
So they extend the term out,the interest, like you're paying
even more on interest in theservicing of that loan.
So these are all things just toconsider if you're in one of
these payments.
Kati Hatfield (17:41):
As a woman going into a car dealership, I hate to
say this.
But take your mechanic with youif you're going to go get a
used car, because they are goingto tell you an honest
evaluation of what yourmaintenance costs are going to
be versus a new car.
I've had several greatmechanics over the years who
(18:03):
were just honest, trustworthy.
They're not going to just tryto sell me something.
They're like this car has thiskind of issue.
It's a known thing.
I deal with this all the time.
Don't get that kind of car.
So yeah, those are just sometips and I would never take my
father.
He also used to be a used carsalesman and he always ends up
with the most expensive car.
(18:23):
So I'm like I'm not taking youdad, I want to save money when I
get out of the dealership, I'mtaking somebody else that's
going to save me money.
Chris Hawkins (18:32):
I think the big thing is for most of you who are
listening to this podcast andwe always have to remember
there's a wide range of peoplewho listen in various parts of
their journey but Brad isabsolutely correct, and that is
that your car payment isprobably a large reason why
you're struggling financially.
And if you want to do somethingdifferent and you want to try
(18:57):
something different because whatyou've been doing is not
working, give it a try gettingrid of one or both or three or
however many new cars or carpayments that you have.
Try buying, like Ryan did, agood, reliable used car.
Okay, even eight, 10 years old,if you have to, because it's
only temporary.
(19:17):
We're not asking you to do thisfor the rest of your life.
You possibly could, but whatwe're suggesting is try
something different.
There's a scene in the movieDays of Thunder that I like to
tell people about all the timeIn that movie he's learning how
to drive stock cars after havingdriven Indy cars, and they're
(19:38):
set up differently.
They have different size tiresand he keeps blowing the tires,
and so there's a scene wherethey're talking about his crew
chief is saying listen, you'reused to driving Indy cars, let's
go out here and I want you torun 50 laps the way that you
want to run them.
And I want you to run 50 lapsthe way that you want to run
them.
And I want you to run 50 lapsthe way I want you to run them a
different way.
And I bet you, at the end ofthe day, the speed running
(20:02):
things the way I want you to dothem, you're going to be faster
and sure enough, that's the case, and the moral of the story is
if what you've been doing isn'tworking, let's try something
different.
Okay, it's not going to hurt.
You Get rid of a car or carpayment.
If you need to Reduce your carpayment, if that's what you need
to do To free up the cash toallow you to start doing some
(20:23):
different things, such as, youknow, pay off your car loans,
credit card debts and otherthings and I think you're going
to find over the long term, thatthat pain is only temporary and
you'll get to the point whereyou can save money to then start
going out and buying good,reliable used cars, or even 20
years.
Down the road, like I've beenable to do is, every now and
then, splurge on a brand new car, keep it forever and not let
(20:47):
the depreciation kill you.
But you've just got to put intoperspective where am I at in my
journey and what are my goalsand what is it that I want to
accomplish.
Brad Nelson (21:01):
And I promise you getting rid of that car payment
is going to help a lot.
Yeah, I guess my last thoughttoo, I want to just add is that
it's the opportunity costs ofthat as well.
Now I get that we're big, hugecar nut people like that.
You love your new car, but thenumber one reason why people
(21:27):
don't get approved for mortgagesin this country is because of
high car payments.
That's the number one reasonthey're not getting approved.
So you got to ask yourselfkeeping you from buying a home
and getting into real estate?
I mean, that's a huge tradeoff.
So that's something to consideris that if you're someone who
wants to buy a home, get intoreal estate, you want to start
building wealth.
Just these massive car paymentsfor most people it's going to
(21:52):
keep you stuck.
Ryan Nelson (21:53):
And also what's the emotional cost of that?
Because I think the big thingyou always hear people talk
about is you don't ever seesomeone that's got this kind of
car with a frown on his face.
It's like, yeah, when he'sdriving it, sure no, but 90% of
the time when he's not drivingit and things are miserable and
you're fighting and you'rearguing and it's financial
stress.
That's what you're paying for.
(22:14):
It's not just paying for thecar, you're paying for it in all
those other ways, like we usedto do, and it's just.
We could well afford the $750car payment if I wanted to.
We go do it right now.
I mean, would it have an impacton our budget?
Sure, could I do it?
Yes, but it's like I don't wantto make that trade off.
I don't want to have thatstress in my life and all that
(22:35):
extra expense and, like you said, insurance.
Like I carry liability.
It's dirt cheap to keep thiscar as opposed to a brand new
car, full coverage, all thatother stuff that goes with it.
Right, like I just don't wantthat in my life.
So I mean this isn't like toshame people about buying new
cars or this or that, it's just.
I think, what you have toreally ask yourself is why, the
(22:56):
end of the day, if you reallyhave a heart to heart with
yourself, why is this car soimportant to you?
Right, you know, and for me itwas all superficial reasons, and
I think if you can get pastthat and be honest with yourself
as to why this car is importantto you, you can be super honest
.
I think a lot of us wouldrealize that it doesn't a lot of
times have anything to do withus and the need for this certain
vehicle.
(23:16):
It's just this need to belooked at in the way we want
people to look at us.
I used to have a truck.
I don't have a truck anymore.
I had the truck.
It looked awesome.
At the end of the day, it'slike everybody said it probably
never seen dirt.
It didn't Most of the cars thatlook like most of the trucks
dirt.
It didn't Most of the cars thatlook like most of the trucks.
They don't ever take themoff-road, they just look a
certain way.
Because you want to have thisperception of that's what it is,
(23:36):
and I think you just have to behonest with yourself Before you
go spend $50,000 on thisamazing off-road thing or
whatever it might be.
What's the reality?
That you're really going to dothat and if you can afford it.
We do have one nice car that wepaid cash for, kind of like you
said, chris, over the yearswe've upgraded.
We have one nice car, but wecan afford to have that.
(23:56):
But if you really can't affordit and you're having these huge
car payments, just be honestwith yourself.
It's a thing you want otherpeople to see you for, that's
all, and I think if you just getpast that, you're going to save
so much money.
You'll be amazed how, how fastyour finances can improve if you
just get over that.
Chris Hawkins (24:12):
So, ryan, you mentioned the word afford about
10 times in the two or threeminutes that you were talking.
For those of you out there,what we're suggesting is this we
want to help you get away fromthinking of afford as can I make
the monthly payments Right, andwe want to get you to the point
in your life where, when youask, can I afford it, what you
(24:34):
mean is do I have enough moneyin the bank to pay cash for this
car.
That's a big, big mindsetchange, one that I think is
extremely worth it.
Ryan Nelson (24:45):
Yeah, for sure.
Brad Nelson (24:46):
Yeah, and it's like you said, ryan, I don't want
people to feel like this episodewas to shame people.
It really is just to bringawareness to this, because it is
such a thing that for a lot ofus, it's so ingrained in us that
you always have to have a carpayment, you always have to have
a new car, and for a lot ofpeople, they don't realize how
much that mentality is keepingthem stuck.
Kept me stuck, kept a lot of usstuck, and once you get out of
it, it just makes such a hugedifference in your overall
(25:09):
ability to improve your finances, get out of debt, save more
money, reduce stress.
It is a game changer, noquestion.
All right, guys, if you'reready to break free from living
paycheck to paycheck, you wantto reduce financial stress.
You want to build savings andfinally pay off debt for good.
But maybe you're not sure whereto start.
Don't worry, we've got youcovered.
Simplify my Money is sent to youeach Sunday to your email.
(25:29):
Simplify your Money is astep-by-step roadmap to better
financial control, and you'llalso learn easy-to-follow
strategies to manage your moneyeffectively.
It's stress-free moneydecisions that will help you
simplify your financial lifewith proven tips that actually
work, and you're going to gainthe tools and the confidence to
tackle your financial goalshead-on.
You can sign up for Simplify myMoney by clicking the link at
(25:52):
the top of the show.
Notes B let's talk about debt.
Let's talk about debt.
Tune into Debt Free Debt.
Tune into Debt Free Debt.
(26:18):
All right guys.
That song means it's time forthe celebrations of the show,
and today we are kicking offwith Hillary.
Hillary says I was able to payan extra $100 towards my lowest
credit card.
Small steps.
I also completed week numberthree inside Roots.
Hillary, congratulations,awesome win.
Chris Hawkins (26:38):
And Heather says I joined on January 15th of 2025
and have already paid onecredit card off, have $800 in
the first emergency fund and I'mdoing it all on a single income
.
It can be done.
Keep pushing forward everyone.
Brad Nelson (26:59):
Yeah, and that's incredible.
And, by the way, the day we'rerecording this is February 11th,
so that's less than a monththat she's made that progress.
That's incredible, awesome job.
Kati Hatfield (27:07):
Yeah, Way to go, Heather.
And then Jim found a mealprepping website that plans 20
freezer meals and each one hasfour servings.
As a single person, that's 80meals in his freezer and that
puts a major dent in eating outand apparently Jim door dashes.
So way to go, Jim.
That is going to save you a lotof money.
Ryan Nelson (27:29):
And Melinda.
Thanks to having our emergencyfund, we were able to pay for
our dryer to be repaired withcash, and now we just need to
save that money back into ouremergency fund.
Brad Nelson (27:39):
Awesome job, hey guys.
As always, congratulations toall of you guys who are taking a
stand for your financial lifeand are wanting better.
Hey, we get that getting out ofdebt isn't easy, but with our
help and with your consistencyand discipline, we promise you
guys, this will be some of thebest work that you guys do in
your entire life.
Thanks for joining us ontoday's show and we will see you
guys on the next episode.
Announcer (28:04):
Thanks for listening to the Debt-Free Dad podcast.
Connect with us on Facebook,tiktok, youtube and Instagram.
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rating and review.
We so appreciate it Forresources, show notes and links
mentioned in today's show.
Visit DebtFreeDadcom.
(28:24):
Catch you next week.
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