One of the first things I didn’t do that many of my friends did just after we graduated from college was buy a new vehicle. I kept the beat up but mechanically sound ’74 Beetle I’d been driving, that I’d paid for in cash – all roughly $700 of it – instead. It did not have AC or even a heater (that worked). But it did not have a payment – and that enabled me to save rather than spend a couple hundred bucks each month servicing a loan on a depreciating consumer appliance.
And so I was able to save up thousands after a few years of working and holding onto a portion of the money I earned. Including the savings I didn’t spend on a full-coverage insurance policy for an old beater VW. For awhile, I didn’t pay a cent – because you could “get away” with not paying the insurance mafia for harms you didn’t cause once-upon-a-better-time. 
It is sound policy to understand that a vehicle is a depreciating consumer appliance. Like a toaster. It will lose value as soon as you buy it – unless it’s a collectible car, in which case it’s probably not a car you can use for daily transportation. In which case, you will need another car that is viable for daily transportation.
Like my old Beetle.
Not the viable part in italics above.
My beater Beetle was just that – and not much more. It was sweaty in the summer and in the winter, I had to dress like an Eskimo to keep from freezing. Even so, the windshield still froze and it was necessary to keep an old gas credit card – remember those? – on hand to use to scrape the ice off the inside of the windshield, while driving, so as to be able to sort-of see where I was driving.
It was rusty. It leaked when it rained. But the holes in the floorboards allowed the water to drain.
One time, the hood flew up while I was driving – and I could no longer see where I was going. Luckily, I was not going very fast – old Beetle, remember – and so was able to slow down fast enough to open the door enough to see the painted lines and make it off to the shoulder and push the hood back down.It was a little bent, but so what? 
Another time, the cable that connected the clutch pedal to the clutch engagement mechanism (it was just a lever that pivoted via the action of depressing the third pedal) snapped but I was still able to make it home by not coming to a complete stop (and so not stalling the engine) and timing my shifts to engine speed until I got home.
You can deal with this sort of stuff when you are 22. More finely, it is easier to deal with it when you are 22. If it breaks down and you can’t fix it, you call a friend or walk. Not a big deal – when you’re 22.
What’s less easy to deal with is being in debt up to your eyeballs when you are 42 – in part because you decided to buy into debt when your were 22.
This is the antimatter of capitalism – which isn’t so much a system of economics as it is the idea of accumulating capital (wealth) so as to not spend your life – especially the latter half of it – paying off debt.
This is not done by spending capital – especially on things you don’t need such as a new vehicle.
Most especially when you are young.
One of the chief advantages of being young is being unencumbered. You don’t need a car with AC and “safety” features because it’s just you right now. You aren’t responsible – yet – for much, other than yourself.
You have the glorious freedom to live cheap – and thereby accumulate capital.
That is how one becomes a capitalist; i.e., an owner of things. Most particularly the owner of oneself. This is my most important piece of advice: A debt-free person is person who is not owned by others. You are someone who does not need a job as much as the person who is owned. You therefore can quit a job that doesn’t suit more easily than a person who knows he is owned – and has a payment coming up next week. 
You certainly do not need “coverage” – as handing over capital to the health insurance mafia is styled. Especially the “coverage” styled “health insurance” – an absurd construction because nothing can insure you’ll be healthy and besides, the young generally are, ipso facto.
Taking good care of yourself can improve your health and reduce the odds you’ll have health problems – but that’s a different thing.
Spending money on “health insurance” when you are young and almost certainly will never need it is a foolishness on par with buying a life vest to wear while walking on the beach. You would be smarter to set aside what you’re told to spend on “coverage” – and thereby have capital to spend on such things as medical care when (and if) you need it and thereby have it for a down payment on your first place, because you probably won’t need to spend it on medical care. See that point about being young and healthy. 
That’s exactly what I did.
Unfortunately, along came Obama – supported, ironically, by lots of young people – and now young people are forced to spend money (if they are employees) on “coverage” that more than likely they will never need and so they now have a harder time accruing the capital necessary to put down on their first place.
Instead, they’re “covered.”
And owned.
. . .
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Can confirm! At NO point in my life did I ever remotely consider having a car payment, any more so than a shoe payment or a radio payment. Thanks to my “poor” parents who never did debt, either. They always managed nicely on a small single income because they lived within their means. I never knew that we were “poor working class” until I was all grown up, because I never wanted for anything, and we sure always had great times. I think fondly of my first ($200) car. I wasn’t at all embarrassed by it. I looked upon my indebted peers as fools for having fancy new/newer cars and the debts to go with them. I was able to live free and easy, and although I’d care if somebody ever hit my car, I didn’t have to lose sleep worrying about it being stolen or scratched. Having little to lose, especially when you’re young, is very freeing. To those of us who realized that, it made us not want to give up that freedom. Now I’m old, and still drive cars that the average teen would not be caught dead in. And I LOVE it! The freedom that autonomous transportation brings is cancelled-out by the economic servitude many volunteer for in order to have a ‘nicer’ level of that transportation.
Perhaps off-topic, but here’s some advice for the young:
Don’t believe these bastards.
https://www.cbsnews.com/news/democratic-congressional-campaign-committee-memo-2024-election/
“In new memo, Democratic Congressional campaigns urge emphasis on message of ‘freedom'”.
“The Democratic campaign memo includes a broader argument that concept of “freedoms” can be utilized to encompass several pressing issues that are important voters, including women’s reproductive rights, the controversial Project 2025 to overhaul the executive branch, the ongoing criticisms of Trump’s defense of Jan. 6 Capitol rioters and his baseless claims of 2020 election fraud.”
And not only “Democrats”, but so-called Republicans don’t seem to understand the concept of freedom, either:
“A spokesman for the National Republican Congressional Committee responded to the Democrats’ messaging efforts, telling CBS News that ‘the Republican platform is to grant Americans freedom from Kamala Harris’ inflation, border, and public safety crises. We will win in November because voters refuse to live in fear of Democrats’ effect on their economic and community security.'”
Freedom isn’t about your “safety” or “security”. The pioneers of the Old West were much freer than any of us will ever be. They weren’t safe or secure. Every day of their lives was downright dangerous. But their fates were in their own hands. Their success was a product of their wills, abilities and grit. THAT is freedom. It isn’t groveling before the Powers and begging for your “safety” from “crises”.
My advice for the younger generation. Don’t get fleeced in a clip joint. Don’t get caught in a speed trap
That might be a bit old for most to understand.
Great post!
Lol. Yeah. Most under 75 probably wouldn’t have a clue about what that was, however, due to the internet, we can see it again.
https://images.app.goo.gl/X4tywqhebBLiryNQ7
I can understand because both of my parents were from the conservative wings of GI and Silent generations, and I think a lot more like them than I do my contemporaries in Gen X. The culture of 60 years ago was far more enjoyable than what Gen X grew up in.
Different strokes for different folks – being an auto enthusiast my first
vehicle was a year old ‘57 top-of the-line Bel Air Chevy V8. Was
saving money at the same time, but enjoying my ride, and
attracting young women, was uppermost.
Sold many of the vehicles for more than paid.
Nothing changed – had muscle cars all the years and still do.
Dumped GM – now have Japanese and German.
I have my gripes with the Army. And with government. But I thank God I retired in ’07, before the Con Job Bullshit was released. VA healthcare has been a blessing for me. No nosy people telling me to “get the shot, or lose your job.
When I “graduated” (was discharged) from Uncle Sam University of Hard Knocks, in ’67, I bought a new 2 dr Chevy II. Paid cash. Basic transportation. 6 cyl., 3-on-the-tree. AM radio. No A/C Paid $1,700 and change, cash. Of course the salesman steered me toward the prettier V8’s, but “no go.” I kept my head.
Videos on off the grid living…
https://www.youtube.com/@PeterSantenello/videos
Living off the grid in the desert….
https://www.youtube.com/watch?v=soviEjUiLGQ
They used to say…people are poor because of their cars…if you have a $1000/month car payment, you can’t write off…it could be true…
Another factor in people being poor…eating at restaurants…..
If you cook for yourself it could cost $8.00 to $10.00 per day total for three meals .
Eating in restaurants can cost $45.00 to $60.00 per day, $1050 to $1500 per month more then your own cooking, just for pretty much fast food, no wonder people are broke…..
If I save $35.00 per day cooking my own food, for 3 meals it takes 1 hour total, so I am making $35.00 per hour, tax free……. (I am a fast cook), a good part time job.
You also save on health care costs by avoiding fast food/low quality food.
this doesn’t include $5.00 starbucks drinks or rip off $2.00 crappy coffees…more negative cash flow…note: coffee can be made for 5 cents to 10 cents a cup….lol…after I did the math on this i am reluctant to even buy coffee…
If you invest $1,000 every month for 40 years at a 6% return, it will be worth $1,991,545.25
$1.99 million dollars just from one person….become a millionaire
people go to expensive restaurants for the experience…cool decor, trendy…
Restaurant food…what is in there?….
https://www.youtube.com/watch?v=HpvRzZskaKE
Eric, just wondering did you go into hock for the Land Cruiser?
Hi ft,
No; I thought better of it. I just can’t see going into debt. And it turned out to be a good thing as the dryer just croaked; hoping I can fix it. We’ll see!
Usually, it is a sensor that fails and is an easy fix.
Moisture sensor malfunction will cause the dryer to not heat. It won’t be an expensive cost.
If the belt to turn the drum broke, it is a chore.
Of course, a new dryer is a better option.
Dryers are an easy fix as long as it’s old school mechanical timer type. It’s drum, motor, tensioner, belt, rollers. Heating element with thermal switching. And the timer.
YouTube will be a huge help, it saved me when the old washing machine timer quit & no obvious way to open the control panel on the Whirlpool style (Kenmore branded) machine. Also how to replace the timer without destroying the push/pull knob.
If it’s a Whirlpool design dryer the belt placement is critical – on mine the belt DID NOT go in the drum groove, instead next to it. Make note of how the belt wraps on the tensioner and motor pulley if it’s intact. Pull the drum rollers, clean and a nip of Teflon lube on the axle pins/bushings. You’ll laugh at how simple these things are once you get into it. Also clean it inside, time to get rid of that fire potential lint buildup plus how clean is your exhaust duct and outside air discharge? When I rebuilt our 20 year old Kenmore (Whirlpool) dryer it worked like new and was really quiet.
Hey Eric,
WRT your VW, I had a 67 Beetle, and it is the car I learned wrenching on. I had picked up John Muir’s How to Keep Your Volkswagon Alive Simple Enough for the Complete Idiot…..what a book. But I was young and stupid and used a torch to free up the valve lash adjustment nuts, not realizing that waiting overnight for the engine to cool was obviated by that stupidity. In any case, not too long later, I dropped a valve through the piston, rebuilt the engine, which was cheep back then and the rest is history. I actually wish I had one back…it’s a fun, simple platform to build on and even at my age, I could wrench on it with ease.
WRT your dryer, check the exhaust for plugups. If that happens, it can cause the thermal sensor to burn out and possibly the heating element. Depending on the model, it’s a fairly easy fix and IMO, you want to fix it if you can….newer cheap dryers are almost worthless, ask me how I know. Parts usually run less than $100 and if it’s easy to get to, you can be back online in about thirty minutes. Best of luck, Amigo.
Good morning, Giuseppe –
I still have my copy of Muir’s book! I hope to eventually have a VW again to go with it. I once had a ’69 Fastback with the fuel injected engine. I truly did not appreciate the brilliance of this car when I owned it.
On the dryer: I have it apart and what failed was the cheesy plastic idler pulley. I have a new one on the way. Fingers crossed nothing else failed!
Muir’s book had some bad advice in it – like removing the cooling flaps. Ask me how I know.
What future?
https://www.zerohedge.com/political/cant-take-it-anymore-residents-springfield-ohio-beg-help-after-20000-haitians-overwhelm
An older guy with tons of debt for a spiffy new car & a big fancy house referred to his job as, “Golden Handcuffs”.
He didn’t have, “Fuck You, money”.
‘John Goodman ‘s F**k you speech, The Gambler’
https://www.youtube.com/watch?v=Q1qFqsQZXfo
I never had, “Fuck You, money” while growing up, however; being debt free while young is pretty dog-gone’d close. …It’s like having the wind in your hair while riding a motorcycle on a nice day without a helmet on.
“Fortress of fucking solitude.” Its a great clip, good writing, good acting. Its an even greater way to live. What amazes me is how many people still don’t have FYM after a lifetime of having millions run through their fingers. Makes you wonder, why many of the uber rich, by their attitude, don’t seem to have the piece of mind FYM represents.
For those still working on it, the advice from Erics article and these comments pretty well covers everything you need. A young person today, free of financial bondage, is looking at opportunities even greater than we GenXers and the boomers had.
I always thought the best part of carrying no debt, living below your check, and putting some aside was how much better you sleep at night. Another good thing, the boss has no real power over your life once you adopt the attitude of ‘I was looking for a job when I found this one.’
Great advice Eric.
I passed on my boys dirtbike ownership from me to him around 15-16yrs old. He took a loan on the next one at 17, and when he needed to sell it for the next model he was astounded that he still owed so much on the loan. hahahaha……… part of my plan for sure.
He now saves for everything, no loans (that I know of).
His long term goal is to pay cash from his first house. We’ll see. We may even help him to avoid the mortgage scam.
Took me way longer to learn about the auto-house loan scams, about 30yrs old relative. But we finally had the house paid off in our 40’s.
Thanks, Chris!
One of the things we (guys our age) had going for us when we were young is that affordable houses were available; I bought my first place in the ’90s for $150k, which was doable because it was possible for me to come up with 10 percent down. Today, that house in my old neighborhood – which was a working-class neighborhood when those houses were built back in the ’70s – is “worth” more than $500k. How can a guy in his 20s today come up with 10 percent of that? Most can’t.
The good news is there are still ways to win. If I were 20 again, I’d live in a van and buy a gym membership to have a place to shower. The elimination of zoning laws would really help young people by allowing “tiny” homes and RVs to be built (or sit) on small plots in suburban areas. But of course, that would run contrary to the point, which is to demoralize the young and egg them on to Marxist “solutions.”
“The elimination of zoning laws would really help young people by allowing “tiny” homes and RVs to be built (or sit) on small plots in suburban areas.”
Such places do exist. Problem is there is no “nightlife” and living in such places requires hard work like plowing your own snow, taking your own trash to the dump, etc.
The soft among us can’t conceive of such “hardship” LOL.
You’re right Eric Re: housing costs. Insane.
My first house in the early 90’s was 106K, and downpayment was loans from my ‘younger’ brothers who had no need for housing at the time being in the military. Paid them off fast.
Then married mid 90’s, 2nd house we did for $220 and paid it off in about 10yrs +/-.
This was when average 3bed in our area was 350, so we started pretty low, glad we did.
Avg now is 500, just like you said. Insane.
I doubt my kids will buy into the status quo. They are already talking about getting creative, like get a rural lot first, pay if off, then barn/house, etc?………..
Indeed, Chris –
Just for fun, we went to look at some prefab sheds yesterday. It was an excuse to ride the bike! Anyhow, we looked at one – modified “barn” with a dual-door gate and (at the other end) a covered porch with a normal door/entrance. It had basic electric already wired up (three 120V outlets, two lights) and a fun-looking pair of sleeping lofts. It was insulated and only needed a small wood stove to be entirely livable. The price? $7,500. Could prolly build it yourself for half that or less. Shit, if I were 25 again, sign me up. Yes, you’d need an outdoor privvy and – yes – you’d need to figure out water. But $7,500 all in for a small – but very cute – little house? Hell yes!
Exactly. Lots of options today for prefab. stuff.
Some popular stuff today for active youth is called ‘barndominiums’.
If smart on initial design, you can set up to expand if needed later.
This is what our son is interested in doing.
We are enticing his move to our rural area with a lot at a bargain. We could do the same in our (sub)urban area but the corrupt state stole our property rights so we can’t build anything on our 50 acres.
There are cars out there that do not cost an arm and a leg, a couple of grand will have you in one.
When I was eight years old, about that age, I would go to the local hobby shop and buy model car kits, remove the parts from the trees and use model airplane glue to assemble the kit. Some Testors paints in small glass containers, a can of spray paint or two, paint the engine, the body, you have a car, can’t drive it, but it was fun to put it all together. I do have a Schuco model race car.
My very first car purchase was a Chevrolet Biscayne, I paid 200 dollars in 1970. Sold it for 100 dollars after a couple of years of driving. The buyer was going to drive it to Alaska.
I did an overhaul of the engine, a 283, would never do it today, too much work for my age anymore.
Those days are gone forever. Now, it is living in the Matrix or something.
Time to start liquidating.
So, I gathered up my savvy
Bought myself a business suit
I headed up to New York City
Where a man can make some loot
I got hired Monday morning
Downsized that afternoon
Overcome with grief that evening
Now I’m crazy as a loon – John Prine, Crazy as a Loon
Saved a good chunk of cash by living on half my salary. Old cars and a mediocre house. When retirement came that beaucoup cash we so proudly saved had less than 1/4 its initial value. Less than 0.25 cents on the dollar. Good Ruck!
Living in a high inflationary environment under a lying government of thieves does not bode well for saving.
Buying durable goods with depreciating money & loading up on debt can be a viable strategy
IF
you can keep everything together until hyperinflation hits.
Sell an old drill, pay off the house, etc.
It’s a bit risky,
This is key. Live below your means and you will have money for emergencies or savings
quote from a gym buddy: those who live below their means become rich, those who live above their means become poor
Sound advice Eric,
All my stuff has been fully paid off for years. My largest expense is the rent I pay govco in the form of property taxes, ever increasing as my now stagnant income gets eaten away by inflation. As you’ve mentioned many times here the PTB makes sure that you never fully “own” anything…..and I’m not happy.
‘I was able to slow down fast enough to open the door enough to see the painted lines.’ — eric
You did WHUT? One shudders to imagine how the computer would react today. You’re not even allowed to open the door to back up. What will it do if you open the door at highway speed?
For sure, the instrument panel will explode into a DEFCON3 fireworks show, as Alexa or Amanda or whatever her name is, howls DOOR AJAR! DOOR AJAR!
But I worry that it would go farther, slamming on the brakes and jerking the steering wheel toward the shoulder, potentially ejecting me out the open door as punishment for defeating the integrity of its monitored protective cage.
‘Open the drivers door, Amanda.’
‘I’m sorry Jim, I’m afraid I can’t do that.’
No kidding Jim. Tried that backing up and it was a violent stop. Surprised it didn’t break anything, including me.
“One of the chief advantages of being young is being unencumbered. You don’t need a car with AC and “safety” features because it’s just you right now. You aren’t responsible – yet – for much, other than yourself.”
I posit that this is no longer true.
Most people especially our children have spent so much time watching the TV that they now believe that keeping up with the Kardashians is a thing.
They think 30 year old VP’s and CEO’s are normal and they have been cheated if they haven’t achieved such lofty titles by their 30s.
They think McMansions and granite countertops are normal housing.
They think Bentley’s are just a car and they claim capitalism is keeping them down and forcing them to settle for a new Hyundai.
Such is the widespread mental illness that surrounds us.
I’d rather “keep up” with the CARDASSIANS.
“less easy to deal with is being in debt up your eyeballs when you are 42”
By which age I was completely debt free. Completely. And have remained so for the ensuing 30 years, as in up to now. It was truly amazing how easy it is to accumulate capital when you have zero monthly debt payment. And how easy it is to tell an employer “I quit”. if they don’t treat you right. Or tell them NO (my very favorite word), when they tell you to work this weekend.
One employer once told me I was “hard to deal with, because I had nothing, wanted nothing and didn’t give a fuck”.
He who has nothing, and wants nothing, has everything.
Extending credit to anyone with a pulse never works out, but banks are hell-bent on putting everyone in hock so that they can continue to show growth. Never mind that 10 banks control 65% of a saturated market. Nope, growth is the only measure of a stock’s value so grow it must.
Thing is, once you reach a point where you’re paying off debt you don’t need or want credit. So the banks have to go down-market to get new people on the hook. I’ve paid off my mortgage (7 years early on a 15 year note), car loans, and have two credit cards that I use for day-to-day transactions that I’ve never paid a penny in interest on. But when I was much younger I wasn’t so good at managing my finances and paid a lot of interest. Now I don’t want to touch the stuff, knowing how it destroys wealth.
Don’t get me wrong, a loan for something that will pay out over time is worth it. I’m even OK with borrowing for a car, because you can use it to get to a better job than you might if you had to rely on public transportation or an unreliable beater. But loans for vacations, entertainment, recreational vehicles, or buying more home than you could afford otherwise is where people get stupid.
Sage advice from my late father, “Don’t spend money you don’t have on things you don’t need”.
Another quote from him. “If you live beneath your means. you always have money. If you live above them, you never do.”
Youth is wasted on young people. It’s an unfortunate truth. Other than an occasional sniffle I never used my company health insurance. Then one day I found myself at 53 and in the ICU. Every year since I’ve consumed thousands of dollars in health care.
Paid cash for my Vega station wagon, the Chevy Cavalier, and the Pontiac Grand Am. Never used a loan until I bought the now 24-year old Sierra. Each one I wrench on myself and ran them till there wasn’t anything left to wrench on.
Can a young person do that nowadays? Probably not. Good luck finding an affordable beater that’s easy to work on.
Oh the toaster reference made me think of that John Pinette bit:
https://youtu.be/Vm3tZRU0ZwE?feature=shared
Not only are too many boys not being raised by their fathers, the schools are doing their worst to make efete queers out of them. Hence why kids don’t “wrench” old rides anymore!
Some more simple advice.
If your still in High School; take some shop classes as this will help you when it comes time to fix what’s broken.
If it’s already broken and you were just going to throw it away; take it apart and maybe you can see what’s wrong and get it working again.
There’s plenty of free stuff that needs repairs out there, practice on that and when your stuff breaks maybe you can fix it.
As prices continue to climb being able to work on what you already own is one way to be able to get your family budget to balance or even be in the black!
Where does any public school system offer shop anymore?
“Instead, they’re ‘covered.'”
When I was “covered” I never used the “coverage” even though I had to pay for it through my medical payroll deductions. Do you know how many “covered” employees go to the medical industrial complex (MIC) for “preventative” tests and “drugs” simply because they are “covered”? I’d say at least 90% of healthy young “covered” people enter the MIC because they don’t want to waste their medical payroll deductions. Once you enter the MIC, you become sicker and sicker and also poorer and poorer. You also can never become “uncovered” because the MIC needs to be paid for the rest of your life. You are owned, as you say Eric.
I remember during the covid me-too freakout before I left my last “covered” employment my company man supervisor telling me that he encourages all his employees to get as many preventative tests and drugs as possible. I looked at him and thought “damn, I really hate you.” I quit a month later after not kowtowing to the bioweapon shot mandates. I’m not owned by a job or the MIC, by the Grace of God.