Step #3:
Cut the Car Loans

Who says you have to buy that brand-new sporty $45,000 car? Your neighbor? Ha! He’s struggling with a huge auto loan of his own ...

Stop trying to keep up with the Jones’s. Instead, opt for a “newer used” car that you can actually pay CASH (or come very close to it) for. You’ll be surprised at what you can get. One friend bought a three-year-old Mercedes for less than $18,000 — and it looks and smells brand-new! (Read How to Buy a Reliable Used Car for a few good tips.)

You’ve heard it before — as soon as you drive a brand-new car off the lot, it loses a ton of value. Why should you have to take that loss? Buying a nice used car will help you get the most bang for your “new” car buck!

Next: Step #4: Say Goodbye to Other Loans