From Big Wheels to Ford Escapes: A Father’s Car Payment Hack That Pays for Life

Dear Mr. Market:

I usually write to you…this fictitious embodiment of economic mood swings and investor psychology, to share thoughts on the markets, interest rates, fiscal policy, or whatever headlines are currently flashing red or green.

But today’s note is personal.

It’s about a different kind of return… not just from stocks or bonds, but from a mindset shift that I believe can serve people for a lifetime. One that came full circle this past weekend when my daughter, Isabel, got engaged and drove off in her first “new” car (a gently used 2024 Ford Escape). As a newly minted TCU graduate about to begin work as a NICU nurse in Fort Worth, Texas, she’s stepping into adulthood with independence, purpose… and a financial hack I hope will serve her for decades to come.

Read more: From Big Wheels to Ford Escapes: A Father’s Car Payment Hack That Pays for Life

Let me back up a bit.

When Isabel was two, she rode a big wheel around the driveway. Yesterday, she drove off in a real car with her fiancé James… also a TCU grad and former Horned Frog football player, who helped her secure it. But long before either of them knew what an interest rate was, I promised Isabel I’d get her a “new” car after college graduation.

We’ve planned for this moment for years.

But instead of buying the car outright and calling it done, I encouraged her to do something that… in my view, is far more powerful: continue making “car payments” — but to herself.

The Car Payment Hack

The average car payment in America today is about a whopping $736/month, and most of that money goes toward a depreciating asset that loses 20–30% of its value the minute you drive it off the lot!

Worse, many people cycle through this process every few years — refinancing, leasing, trading in…basically handing over thousands to banks, credit unions, or dealership financing departments year after year. And at the end of it? Nothing. No equity. No return. No payoff.

So what if you flipped the script?

Isabel is now investing $300/month into a low-cost target date fund — SWYFX (Schwab Target 2035 Index Fund) — and she plans to drive this car for at least 10 years. That means she’ll “pay herself” $300/month into this fund for a decade.

Let’s do the math:

• $300/month
• Compounded at 9% annually (a reasonable long-term market return)
• For 10 years (total investment…or “payments” totaling $36,000)

That becomes ~$57,000.

Not bad for a vehicle that’s already paid off…and now she can pretty much pick any car on the lot she wants in 2035.

Imagine instead of trading in or taking on a new lease 5 years from now, she simply uses her car bucket to buy the next one. No financing. No stress. And maybe, just maybe… a small smile of gratitude to the younger version of herself who had the foresight to save.

The Bigger Idea

This isn’t just about cars. The same logic applies to vacations, home repairs, revolving debt, or any other expense that shows up in life and threatens to hijack your financial momentum.

Once a payment ends … don’t stop paying. Redirect it. Automate it. Invest it. Build your future with the payments you used to owe.

It’s the financial equivalent of that old proverb:

Give a man a fish, feed him for a day. Teach him to fish, feed him for a lifetime.

We didn’t just give Isabel a car — we gave her a system, a lesson, and a framework for how to approach money going forward.

One that I hope becomes a lifelong habit.

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To Mr. Market, this isn’t breaking news. It won’t move indexes or spark a tweetstorm. But for one young woman and maybe a few readers out there … this shift in mindset could be the difference between stress and stability, between feeling broke and feeling empowered.

And if you ask me, that’s a better return than any ticker symbol could offer.

I love you Isabel! – Your Papa