The future of mobility is accelerating today and the rubber is hitting the road: adjusted for inflation, the cost per mile driven is falling for the first time since the Model T was rolled off assembly lines thanks to EVs, and falling costs will continue their momentum in favor of electric vehicle (EV) purchases.
The Model 3 is the first EV in history priced on par with its gas-powered equivalents right off the lot before factoring in lower operating costs or subsidies!
Because EV battery prices continue to fall and improve, FMT Advisory estimates that by holding off on the purchase of a new EV for just 1.35 years and refraining from buying a gas-fueled vehicle altogether, Americans could save a minimum of $60,000 over the next 10 years.
Not only can a household potentially save $60k or more by simply delaying the purchase of a new gas-fueled car over the next year and going with an EV instead, but household balance sheets could also see a dramatic boost to savings were these proceeds deployed toward growth investments.
If these substantial savings were invested into key investments that might double or quadruple over the next 5 or 10 years, many households and young savers could come out significantly ahead.
FMT Advisory also believes that the Model 3 (and other models) may have a value greater than the vehicle itself when Tesla rolls out a Robo Taxi service much like Uber or Lyft.
If owners lease their Tesla EVs to Tesla’s planned Robo Taxi network in the future, the vehicle could be worth 5x more than the price of the vehicle itself due to the net present value of the car’s cash flows within the Tesla network.
In short, do not buy a gas guzzler if you want to save a lot of money. In the meantime, by just waiting a little longer, consumers will be able to buy EVs far cheaper than gas guzzlers right off the lot in just a year or so, and Tesla owners could possibly put their Tesla full self-driving (FSD) vehicles into the Tesla network and literally get paid to own them.
There is also speculation that before this year is over, Tesla is going to unleash a driver ride-hailing platform as a step-function before they go fully autonomous, where potential buyers can put a modest down payment on a new Tesla and pay off the remainder of the loan by becoming a driver in the Tesla network.
Go Over the Top
Going over the top (OTT) is effectively cutting the cord with your cable T.V. provider. Since streaming services such as Netflix are 75% cheaper than cable T.V., households are cutting the cord and signing up for 3.4 streaming services on average.
Roku provides an exceptional operating system to pull your streaming services into an easily navigable experience at essentially no charge. Roku also makes it very easy to sign up or cancel your specific streaming subscriptions, such as Disney+ or Netflix, and it makes the entire process quite enjoyable and convenient. Roku is akin to a computer’s operating system—keeping all the apps (streaming services) organized.
Most households will also soon be able to cut their Wi-Fi broadband cord with their cable or telephone provider and pay $40-50 per month less in addition to getting a better broadband experience through Verizon 5G home Wi-Fi or T-Mobile’s Wi-Fi home service.
FMT estimates that households can save anywhere between $900-1200 a year by cutting the cord.
Higher Education and Insurance
Employees that work at Starbucks for over 20 hours per week get free health insurance. If you are a gig worker or 1099’d because you work for yourself and health insurance is draining you, consider part-time work at Starbucks.
Also, through Starbucks’ College Achievement Plan, employees can get a free 4-year online college degree. Avoid unnecessary college debt if you don’t have a specific direction and avoid usury costs.
The economy is rapidly changing, so be sure to do some research and make sure your profession isn’t going to be automated out of existence. Artificial intelligence and automation are very real, and we are in the 1st inning of massive wealth generation for investors in AI but we are also in the 1st inning of jobs being replaced and becoming obsolete.
You’d be wise to make sure you’re going into a sustainable profession before signing up for college debt. Otherwise, invest every dollar you can into future money trends to get ahead.
Engineering and construction have a lack of skilled labor workers, for example, so specific trade schools and/or skills in this area should lead to a great career over the next decade or more, according to our research.
There is also a huge digital skills gap in exactly where the world keeps heading: artificial intelligence specialists, robotics engineers, data scientists, full-stack engineers, behavioral health technicians, and cybersecurity.
According to The Condition of Education, the most widely oversubscribed degrees are in education and health-related services.
Both areas are ripe for AI disruption!
Also, make sure you optimize your education if possible. For example, technology programmers (coders) coming out of traditional 4-year schools have a harder time getting employment than those that attend a vocational school like LaunchCode.
Businesses don’t like to hire new college programmers because they make the most mistakes, but those that graduate from LaunchCode have a nearly 100% job placement rate because of the heavy hitters behind the company from world-class tech companies.
There are also short courses and boot camps at online education companies like 2U to get your feet wet or expand your current job position.
To sum it up, be smart, be nimble, and simply have a plan when you head toward higher education and you’ll save yourself massive time and money so you can really get ahead.
By just waiting it out a little longer with new transportation needs, one can save $60k or more. If you must buy a new car today, we recommend the Tesla Model S.
With your home entertainment needs, cut the cord and go over the top with a couple of streaming services of your choice. Lastly, and not mentioned here, wait to buy a new cell phone until 2021. By then, next-gen cell phones will be rolling out en masse and you’ll be up to speed.
Any questions or need help getting started on a savings plan call us today.
Nicholas Green, CIO and Founder