The #1 Wealth Killer in the U.S.

Assalamu Alaikum girlie! 🌸

Let me paint the scene.

You’re doing “everything right.”

You’re budgeting.
You’ve got a little savings going.
You’re even peeking into investing.

And then… bam. The car breaks down. Repairs cost more than the thing’s even worth.
You need a car to get to work, to pick up your siblings, to do life.

You start looking around, and suddenly you’re being told:

🚨 That “normal” thing?
Yeah… it’s the #1 wealth killer in the U.S.

Let’s unpack why car loans are putting you behind, even if you’re not out here financing a cybertruck.

Here’s the Real Cost (That No One Talks About):

🚘 Depreciation is a Beast

The average car loses 15–20% of its value in the first year.
By year five? You’ve lost about 60% of what you’ll pay. (Ramsey Solutions).

Translation: You’re making $521/month payments… on an asset that’s basically melting.

💸 Interest = Paying More for Less

Let’s say you finance $30,000 at 6.5% over 5 years.
By the end, you’ve paid back almost $35,200.

That’s $5K+ just poof - gone. And that’s not even a fancy car.

And let’s be honest… most car loans these days are 7 years long.
That means you're still making payments when your car is worth half its original value.

📉 It’s Dragging Your Net Worth Down

If your car is worth $12,000 and you owe $17,000?
You don’t own an asset, you own a liability.

And that negative equity? It shows up in your net worth.
The car looks pretty in the driveway… but it’s messing up your financial picture behind the scenes.

⛔ Ribaa Is Ribaa

In Islam, interest is prohibited. Full stop.
Even if “everyone does it,” we don’t water down our values for convenience. I know it is extremely hard to avoid ribaa in the East & West, but believe that there IS a way. Just put in the effort and Allah will aid you!

“But I Need a Car to Work!”

I hear you.
And I’m not judging, girlie life is real out here.

If you're in a place where a car loan feels like the only option, here’s how to survive it with your wallet (and conscience) intact:

✅ Keep the loan amount as LOW as possible
Buy a used, reliable car - not the one the dealer hypes up. Function > flex.

✅ Short term only (3 years or less)
Don’t stretch it to 72 months to “make the payment fit.” That’s a trap.

✅ Pay it off with a vengeance
Every extra dollar you throw at it = freedom bought early.

✅ Skip the interest
Some ribaa-free financing options exist - not all are great, but it’s worth researching.

✅ Don’t get comfortable
This isn’t “normal.” It’s an emergency measure, not a lifestyle.

If I Were You…?

I wouldn’t do it.

Not because I’m against cars.
But because the numbers don’t lie: car loans are wealth destroyers.

You’re tying up your income, paying interest, and owning something that’s worth less every month. Even if there’s no ribaa, it is not a good financial decision because cars are a liability.

And while you're doing that?

👀 You’re missing opportunities to invest, build your emergency fund, take a course, or even start a business.

That $600/month could be growing your future. Instead, it's disappearing into a depreciating machine.

What I’d Do Instead:

1. Stack a car savings fund now
   Even $100/month adds up. Label it “Next Car - Paid in Full” and keep it in a separate, interest-free account.

2. Buy used, reliable, and boring if you have to
   Honda Civic, Toyota Corolla. Not sexy. But they run forever.

3. Use public transit or carpool while you save (if possible)
   Temporary discomfort now = long-term power later.

Are you tired of feeling stuck with your money?

Let’s fix that! Schedule a free consultation below

Talk soon,

Fatimah