Cars are like houses in many ways. You don’t need to buy a car any more than you need to buy a house. Most people think to be financially smart they need to purchase both. But a home, like a car, is not an investment because it doesn’t pay you every month. You have to pay it every month.

Don’t believe the fantasy of ownership. Rent a house and lease a car.

Pay to use the car. There is no reason to pay for the future value of the car. Rent a house and be nimble, you don’t need to tie up your money in a mortgage. 76% of Americans live paycheck to paycheck and a lot of those people are spending it all on a house and car payments that won’t be worth it once they are paid off.

I’d rather be free than own a house and a car. The house has been fed to you as the American dream. It’s not an investment, folks. Neither is a piece of machinery like a car. The only purpose of a house is to live somewhere and the only purpose of a car is to get somewhere—not an investment.

Your focus should be growing your income and investing in assets that will pay you. This is not what the middle class does. They buy homes and cars. The rich didn’t get rich buying a house or buying cars. They have investments that pay them. Don’t get caught in the idea that a house is your ticket to wealth. Buying a house and a car has been fed to people as the financially smart thing to do.

Do some numbers. A 45K Infiniti Q50 vehicle would cost you $632 per month for 72 months with no money down to buy versus $374 per month for 36 months on a lease. A car gets you to work and back—use it and then lose it.

Look, I’ve owned a nice house in LA and I once lost ownership of my Hummer (H2) to my brother betting on a Call of Duty game. I myself have bought houses and cars. I’m not perfect but I earned the right to do those things. If you haven’t banked millions yet you have no business putting your hard earned cash into house and car purchases.

Don’t blame the messenger,

GC