Image courtesy of Rawich from freedigitalphotos.net
In order to live financially free, discipline is essential to control “toy” purchases until you can afford them. We consider “toys” to be any vehicle you own. That would be your cars, boats, snowmobiles, motorcycles, etc. The total value of ALL vehicles should be less than 40% of your annual household gross income. So a household with a $50,000 gross income should only have $20,000 worth of vehicles at the most. By keeping these depreciating assets at a reasonable level you will have more to invest in appreciating assets, bringing you closer to the financial freedom goal!
Please comment and share all your favorite toys!