How many vehicles do you pay for in your household? One? Two? Three, if you include the trailer? Don't you wish you only had one vehicle payment at a time?
2 or more vehicle loans simultaneously is a hefty monthly commitment. I have seen $1400 in car payments alone and when you add on insurance for 2 vehicles, transportation costs become more than your average mortgage!
Aiming to have only 1 car payment (or less) is an example of what I term "planned spending". This frees up cash flow for your goals and can be done fairly easily with a bit a forward thinking.
1. Instead of waiting to "need" a new vehicle, consciously decide ahead of time. In my household the oldest vehicle would be the first to get replaced. For example, if my partner had a 2016 and I have a 2020 then he would be next to get a vehicle and we would take turns.
2. Make your payment amortization as short as possible. Finance for no longer than 4-5 years – ideally. In order for...