16. That Includes Your Car
If you have a monthly car payment, you need to prioritize paying it off. Car payments tend to come with high-interest rates, and as much as half of your monthly payment may be going to interest. Make a plan to get your car paid off as quickly as you can.
After your car is paid off, don’t buy a new car and taking on another debt. That’s a common mistake middle-class people make. Drive your paid-off vehicle for as long as you can and set aside the money you would use on the car note. That money can be used to pay off other debts, save, or plan for when you truly need to buy another car.