Dave Ramsey points out the obvious way millionaires save money – and you can start doing it today

Wealth is built through smart business and investment, and most importantly, steady savings habits. Many millionaires have worked hard to achieve – and maintain – a remarkable level of wealth.

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As such, most millionaires emphasize careful money management and avoid overt display of assets. This extends to large status purchases such as cars. According to Experian Automotive data and Forbes, while society’s rich are more likely to buy luxury cars than the less well-off, 61% of people making more than $250,000 are likely to drive Hondas, Fords and Toyotas.

“Most millionaires don’t drive flashy cars,” said financial personality Dave Ramsey. “When people aren’t wasting money to LOOK wealthy, they have money to actually become wealthy.”

The former financial advisor who was influenced by Humphrey Yang supported this line of thinking, arguing that cars are a huge “wealth killer” simply because of the status they project. Yang said people tend to buy more expensive cars than they can afford, removing them from being able to build wealth through investing or saving.

For a depreciating asset, it is difficult to justify spending an exorbitant amount on a vehicle. With the average American household income around $70,000 and the average new car price over $49,000, “Your goal should be to buy the cheapest car,” said finance guru Suze Orman. “Period. That should direct you to a used car rather than a new car.”

Whether you’re looking to buy a used or new car or thinking of trading your current ride for a cheaper option, your decision should be based on saving over status. The price and future costs of a car will fluctuate depending on the model you buy and whether you buy used or new (and where you live), so it pays to do your homework.

To begin your research, here are the best used cars to buy under $10,000 and the cheapest new cars on the market right now.

10 Best Used Cars Under $10,000

Despite record high used car prices freezing out many buyers, Kelley Blue Book has released some economical picks.

1. 2012 Toyota Camry.

2. 2011 Honda Accord.

3. 2013 Honda Civic.

4. 2012 Toyota Corolla.

5. 2013 Mazda3.

6. 2013 Subaru Outback.

7. Toyota Venza 2010.

8. 2014 Ford Fusion.

9. 2014 Subaru Impreza.

10. 2012 Volkswagen GTI.

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10 cheapest new cars

For 2023, Chevy is discontinuing its Spark model, which has been the cheapest new car in America since 2020, according to Car and Driver. But there are still plenty of car deals out there for under and a little over $20,000 apiece. Cars.com. The following is a list of the 10 cheapest new cars, from the smallest to the most expensive base price. All prices include the destination charge, but not cash incentives or taxes and fees.

1. 2023 Mitsubishi Mirage ES: $17,600.

2. 2023 Kia Rio LX: $17,645.

3. 2022 Hyundai Accent SE: $17,740.

4. 2023 Nissan Versa S: $18,425.

5. 2023 Kia Forte LX: $20,585.

6. 2023 Hyundai Venue SE: $20,795.

7. 2022 Nissan Sentra S: $21,045.

8. 2023 Kia Soul LX: $21,085.

9. 2023 Hyundai Elantra SE: $21,545.

10. 2023 Subaru Impreza: $22,115.

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This article originally appeared on GOBankingRates.com: Dave Ramsey points out the obvious way millionaires save money—and you can start doing it today

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