Are you looking for tips to pay off your
car early or want to know the benefits why just paid off my truck three years
early and here’s what I’ve learned hey what’s up guys my name is Brad this is a
channel about tips and motivation on getting out of debt as well as my
journey through the baby steps on my path to financial freedom for those of
you that follow me on a regular basis know that this video has been a long
time coming I have finally paid off my truck I’ve
been talking about it for months it’s finally happened and it wasn’t until now
after I’ve paid it off that I looked back and saw what a real benefit it was
so I’m gonna talk about some tips that might help you pay it off early and also
tell you about what I’ve learned and how much money I saved by getting rid of my
truck payment I was like the standard American who felt like having a car
payment was really something that was pretty normal that everybody had a car
payment and when I went out to buy my truck I think back now at the the
framework and the things that were going through my mind
and it just seems crazy now knowing what I know at the time when I bought my
truck my household had to paid off cars that were fully functioning but yet I
tried to find every single excuse I could to go out and buy something new
and trade in my car without a payment when I went into buying my new car I
thought to myself not if I could afford the truck but how much of a payment
could I afford and I said to my wife hey if we could keep the payment under this
amount we could afford that car but we know now that that is not the case just
because you can afford the payment doesn’t mean you should be buying that
particular car I went out and I bought my truck and I had my conversation with
my dealer and I knew where I wanted to be and finally when he met that we met
at an amount that was six hundred and six dollars every single month for my
truck payment and I was happy with that I was super glad that I was gonna be
paying somebody $600 a month just to drive a fancy vehicle that I could tell
my friends about and feel proud of then a year later I learned about Dave Ramsey
and I learned about getting out of debt and I realized what a burden my truck
really was and I thought to myself wow if I’m gonna do this I really need to
turn in my truck I need to trade in and get rid of it I can’t call myself a baby
stepper if I have this brand-new truck with this enormous payment I did some
research and Dave talked about you know if if you could pay off your car in less
than a year and all of your motors in your house are less than half of your
total income then you’re on the right track and for me that was the case where
my truck was in my debt snowball I knew that I was going to get to it and I knew
that I’d be able to pay it off probably within the year and my total amount of
payments and my total amount of debt to the cars and other motors was in fact
less than my it was less than 50% of my annual income so I figured I’m gonna
hold on to the truck and I’m gonna try and pay it off in a year and do the
right thing while doing that I had all these other excuses for why I needed my
truck I needed it for work or I needed a reliable vehicle or I needed something
safe I had all of those things beforehand and no car payment my last
car was a stick shift so one of the things that me and my wife really talked
about as an excuse to get rid of my cars she couldn’t drive stick they would have
taken me one weekend to show her how to drive stick but instead of that we went
out we bought a $40,000 vehicle and sold our other vehicle to that dealer for
$1,500 a perfectly working 2009 Mitsubishi Lancer I gave to the
dealership and traded 1,500 for 60 just because I didn’t want to teach my wife
how to drive stick shift well a year later the truck is finally paid off and
I’ve paid off now two credit cards two undergraduate loans and my truck and
moving through the baby steps I’ve really really felt awesome when I when I
got rid of the debt but this one really hits home for me because this was the
one that I had to work the hardest for it was the one that I wasn’t sure if I
could have and I had the choice of getting rid of early in my baby steps
and now I definitely feel a new appreciation for my vehicle when I Drive
around I feel like I’m driving something that’s mine and you know that in itself
is such a major major major motivation to me and to continue towards my other
debts because if I can feel the same way paying off my graduate loans and my
house as well then the sky’s the limit for my financial future so I took out a
six-year loan on my car and like I said before my
payment little over six hundred dollars a month and the interest on my truck was
four point one percent I had really good credit which as dave says you know is
just a reason to take out more money and pay it back quicker right right that’s
what a good credit score is it means that you’re good at paying back money to
banks by the time I got to my truck in my debt snowball I was up to one
thousand eight hundred and fourteen dollars was going towards my payment
every month so I almost tripled my monthly payment and I saw it started to
see that total go down and down and down I went back and looked at my previous
statements and in the three years I paid two thousand six hundred and fifty
dollars to interest that’s how much money I gave to Toyota financial to hold
on to my loan for me just because I wasn’t adult enough to save up money and
buy that car with cash but on the flip side now knowing what I know and getting
rid of my truck three years early I saved that same amount of money two
thousand six hundred and fifty dollars over the course of the next three years
and just think about all the things that you could buy or all the debt that you
could pay off if you weren’t having somebody else hold on to your debts for
you and you could put that two thousand six hundred and fifty dollars right
inside your own pocket the best part about having a paid off truck and one
that’s relatively new three years with $40,000 on it my truck still holds a
high amount of equity when I go in Kelley Blue Book right now I can get
between twenty seven and twenty nine thousand dollars from my truck so
because of the Toyota and because it’s a really good reliable car it hasn’t
appreciated as much as I thought it will now I know that that assets gonna
depreciate over time but if I really get stuck I know that I have a twenty-five
thousand dollar item that I can get rid of in a pinch if I really needed to an
emergency so having that asset and knowing that Toyota doesn’t own that
truck I do is another feeling of relief and some weight lifted off my shoulders
I guess all in all if right now you have a car payment and you’re not following
the baby steps look up Dave Rams you look at my old videos start a debt
snowball and try and start attacking your debt if it’s the only debt you have
and you are a part of Dave Ramsey be patient you’ll
get there and when you pay that car off it is going to feel amazing
so my tips are get on a budget start doing the debt snowball and really focus
on it and pay it off as quickly as you can
the faster you were gonna pay that off the more money and interest you’re gonna
put in your pocket and the better that you’ll be in the long term for my two
hundred and twenty nine current subscribers thank you so much for being
a part of my YouTube family if you’re new here consider subscribing thank you
for watching this video I hope it helped if it did give it a thumbs up go out pay
off your truck I can’t wait to have my deed check me out on Instagram baby
steps Brad I’ll have my title on there to prove to you guys that it’s mine with
the zero balance until then hope everyone enjoys the rest of your week
I’ll have a live stream tomorrow night at 7:30 as always stop by answering some
questions and until then have a great day