Tuesday, January 3, 2012

food for finance: million mile joe

(healthy) food for finance is a column where we talk about how fitness and finance correlate with each other. join us on our journey to be both physically and financially fit.

Have you heard of the the guy who had 1 million miles on his Honda? Do you know how many zeros that is? 1,000,000!! I don't think he did it because he is a Dave Ramsey follower. I think he likes cars and wanted to see how far it would go. Mute the music on my page (bottom right) and watch his story.

Now watch this one. It is the parade Honda had for him when he hit 1,000,000 miles!

Kyle and I are no where near 1 million miles on our cars...not even if you add them together. We both have 2002 SUVs which means our cars turn 10 years old this year. I have 146,000 miles and Kyle has 192,000 miles on his. Joe has given us hope!

Here is our car plan: As you know, we are on the Dave Ramsey plan. We have no debt but our house. We are about 7 weeks away from having our 6 month emergency fund completely funded (baby step 3). Before starting baby steps 4, 5 & 6, we'll need to save for a car. So we will pause the plan and save for a car. Basically, do what we are doing now-just saving away.

Why do we plan to pay cash for a car? Because we don't want to have debt. Instead of us paying interest on a car payment, we'll pay our self a car payment and gain interest. Since we have no debt but our house, we can save for a car in no time! How awesome will it feel to buy a car with CASH!?!

Will we buy a new car? No, it is not in the budget.  Cars lose 70% of its value within the 1st 4 years (even with the 0% financing that is so so tempting). We don't have the net income to buy brand new. Our "new" car will at least be 4 years old.  Click here to see the full story of why we are doing this. Kyle and I are having fun with getting out of debt! It is very empowering. I am thankful for a husband that shares the same goals as me. I'll be sure to update you when we get our "new" car. Until then, we'll celebrate that our cars are hitting the 10 year mark. Who knows, maybe we'll be million mile McCoys!

1 comment:

  1. Awesome job! I love reading your finance posts. We're plowing away at baby step #2 after socking away an amount between baby step 1 and 3 (just in case my '03 Jeep Liberty dies! I'm sure you understand! :) ). You're good inspiration for us!