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So today i’m going to tell you guys about my worst financial decision i’ve ever made in my entire life now before i get into the video i just want to mention there’s a ton of background noise outside just like people know in their lives and stuff and so if you’re hearing any background noise it’s because of the time of day i’m recording this so hopefully it’s
Not detracting from the video but it’s a little bit more noisy in my room that it usually is so hopefully that’s not bothering you guys but i just figured i’d mention it but anyways let’s talk about the worst financial decision i’ve ever made in my entire life and this is how i lost nine thousand four hundred eighty dollars over the course of one year now believe
It or not it has nothing to do with investing or anything like that it has to do with purchasing a car and i’ve talked about this in the past on some of my videos on buying the car versus leasing the car things like that talking about vehicle depreciation and how much money you can truly lose on a car and it’s not just cars guys anything you buy any toys you buy
Whether it’s a snowmobile or an atv or whatever it is you’re buying anything that is a depreciating asset there’s potential for huge losses like i had right here and my idea of but i’m sharing this with you guys is that hopefully you guys can make a better decision than i did because i kind of was at the time 21 years old and i wanted a cool car so i’m going to
Kind of explain the back story behind that so i wasn’t very happy with my life i was kind of like bored and i didn’t really i didn’t really have a lot of confidence in myself and i was kind of like well you know i see all these people driving cool cars and like at that time i was driving an old suv and it was basically something that was paid off i bought it in
Cash and i was like well maybe i’ll buy a sports car or sporty your car just so it’s kind of something cool to drive maybe i’ll feel better about myself because anytime we’re buying something like that anytime we’re buying a flashy toy or something what you’re buying is how you’re hoping it will make you feel so for me i bought that car saying i hope it will make
Me feel more confident or better about myself and so i saw people driving fast cars and i was like man that looks like a lot of fun and i didn’t know how to drive stick so i wanted to learn how to drive stick so i was like okay well i’m going to go out there and just buy a cool sports car so my dad had a friend who works at a small caldecott car dealership and
My first warning to you guys is don’t just assume because it’s a family friend that they’re going to be giving you a good deal because unfortunately i kind of got raked over the coals on this deal i started off bad on this because i paid significantly more than the book value for this car about $2,000 more and the guy had a you know very convincing speech of all
The cars in immaculate shape it’s been beautiful condition you’ll never find wood like this out there so that was like the whole smoke and mirrors thing and i’m like ah yeah yeah i totally believe him of course i’ll buy this car and i was to try i was distracted by the shiny object i was like oh the car is so nice looking and so anyway long story short i bought
The car so and i really didn’t even use the car that much you’re going to see what i talk about how many miles i put on the car over one year it’s just crazy how much money i lost doing this and that right now looking at it it makes me just like i wish i could go back in time and not do this because this was a terrible waste of money for me but anyway let’s do
The numbers here may of 2016 it was about this time last year i bought the car 2007 subaru impreza wrx blue one i’ll put a picture up on the screen so you guys can see so maybe you understand very attractive car very fast car on the drive but i paid thirteen thousand two hundred dollars for it okay and at the time it had one hundred forty two thousand two hundred
Twenty-six miles on it it was very fast very fun car but i paid more than it was even worth when i first bought the car now may 2017 this is when i actually just traded this car in for a whopping total of five thousand eight hundred dollars with 150 thousand five hundred forty-one miles on it so i put less than ten thousand miles on that car over this year and
My total depreciation of the vehicle from 2016 2017 including the fact that obviously when i bought the car i overpaid for it i lost seven thousand four hundred dollars or fifty six percent of the total value of that car now those other things i’m not even counting in this because i wasn’t sure if i wanted the fact that is in but i’m not factoring in the fact
That i had to pay taxes as well as registration fees on that car so that would make this totally even higher we would be well over $10,000 at that point i’m also not considering the fact that i took a loan out on this car and i was paying interest for one year on basically a $10,000 loan so by the time you factor those things in we’re well over 10,000 probably
Approaching $11,000 that’s how much i actually lost in this life lesson of mine here but it ended ups you know trading the car in and i got fifty eight hundred dollars obviously when you trade a car in you get less than what you could sell it for privately but just because i don’t have the time and it’s such a hassle to sell a car i just ended up trading it
Indicate that was the easiest thing for me to do so my total loss i have guys with seven thousand four hundred dollars not accounting for taxes registration fees or the interest paid on that loan now not only that guys i also had other expenses associated with this car that we have to factor in here i had to pay insurance on two vehicles because the whole time i
Was doing this i had two cars i ended up having to basically my brother’s car his car the engine blew it exploded the engine blew a hole in it so he was out of vehicle so i gave him basically the suv i had it was an old beater car and like here you go just take that i’ll drive this for now so for six months i was driving both cars then for the other six months
I drove this car exclusively and gave him that car because he ended up basically his car exploded essentially so basically you know i didn’t use the car that much for the first six months but for those six months i was insuring two vehicles at the same time so if you think about my insurance expenses it was 115 a month or a total of one thousand three hundred
Eighty dollars out the window that i will never see again that’s almost 1,400 bucks right there then let’s talk about maintenance so as far as oil changes and tire rotation i probably spent about two hundred dollars for that year on maintenance as far as your pairs go i was lucky that i didn’t have to do any major repairs on this car because if i had to do some
Major repairs oh my god we could be talking twelve thirteen fourteen thousand dollar loss on this over a year but my repairs were only about three hundred dollars all i ever really had to do to the car was put into a power steering pump it so i was very fortunate that it wasn’t a bad car it was just a terrible thing that waste your money up and then as far as
Car washes go i got the car wash like twice a week i’m sorry twice a month so i’m estimating probably 200 bucks i spent total on car washes so if you add all is up my $7,400 in depreciation the 1380 spent on insurance at $200 a month spent on or the $200 total spent on maintenance $300 under payers $200 of car washes that’s a total loss guide of nine thousand
Four hundred eighty dollars for each month seven hundred ninety dollars out the window gone alright now i do pretty well for myself but that is not chump change for me that is a lot of money when you think about how much money that is that’s a disgusting amount of money to be throwing out the window and the other thing i really didn’t factor into this was my
Fuel economy so this car and i have a really really rough commute i drive like thirty five miles there thirty five miles back to get the work so i have a seventy mile a day commute and for six months i drove this car to work and that car gets i believe it was close to 18 miles per gallon because you also have to run the premium fuel so it was the 93 octane gas
So is the premium gas combined with 18 miles per gallon if i were to factor in how much i also spent on fuel compared to a car that had a lot better gas mileage because even my old suv i got 25 miles per gallon out of that and i was able to run the low test gas so if i factor that expense in there as well we would be pushing this number even higher so that’s just
Another thing to consider how much freakin money i wasted on this deal here so now this is where it’s fun i wanted to take this and say let’s say i didn’t waste nine thousand four hundred eighty dollars let’s say i just threw out my one vehicle and i took that money that i lost in it instead i invested it let’s see how much money i would have versus having zero
Dollars right now so what i did to factor this thing obviously i’m not going to say that i would have known to all i would have put my money in google or amazon or something like that i’m saying simply that what if i had taken my money and put it in something tracking the s&p 500 index which is a very conservative investment this is nothing earth-shattering
Okay may 6th of 2016 the s&p 500 index was at two thousand fifty seven and fourteen cents and may 8th of 2017 this is around the time i bought and then got rid of the car the sp index was at two thousand three hundred ninety nine and 38 cents so over that span of time there was a sixteen point six percent return the sp500 index so had i taken that 9480 dollars
And simply invested it in a fund tracking the s&p 500 index i would have eleven thousand fifty seven dollars and sixteen cents as opposed to having zero dollars right now and that just goes to show guys some people out there don’t understand how much freakin money you can lose on things like this and this is by far the worst financial decision i’ve ever made
In my entire life and i’m glad i learned the lesson early when i’m young and i have this ability to you know it’s to bounce back but as heavily invested as i am now in the stock market it just makes me sick knowing that i could have had another almost ten thousand dollars to invest in the stock market or invest even in something as conservative as the s&p 500
Index or even just put it in my mutual fund do anything with it and instead it’s gone just out the window and basically what did i get out of it i learned how to drive stick i had fun with it for a couple weeks and then it was just like alright i’m bored of the car it didn’t make me feel the way i expected it to make me feel and that’s it just a life lesson but
Anyway guys that’s that i just wanted to share this with you because this is my worst financial decision i’ve ever made and i want you guys to think twice if you’re ever looking for a flashy car or you’re buying something because you think it’s going to make you feel better about yourself it’s it’s not going to make you feel better maybe it will for a little
Bit small period of time but after a while you get tired of it and it’s just not the right thing to do so that’s just i just figured this would be a way to show you guys how much money you could possibly lose on something like that but anyways guys that’s pretty much all i got for this video if you would have made terrible financial decisions in the past like
Myself with this video please drop me a comment so i can have some sympathy and not feel so bad about myself i would certainly appreciate that please drop a like if you enjoyed this video and then consider subscribing to be notified of any future uploads and as always i thank you guys for watching this video
Transcribed from video
MY WORST FINANCIAL DECISION EVER! By Ryan Scribner