Rachel Cruze: The No. 1 Worst Investment You Can Make

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With her direct yet relatable style, Cruze challenges the money myths that keep people stuck.

She recently posted an Instagramreelabout one popular yet damaging financial choice people make.

Here is the No.

1 worst investment it’s possible for you to make, according to Cruze.

Also seewhy Cruze recommends people never handle their finances alone.

Would you do it?

The correct answer is obviously no.

Yet many consumers have already said yes to that investment with some saying yes every few years.

A car isnt a financial product likestocks or bonds, so some people struggle to consider it an investment.

But with transportation eating up almost 17% of the average Americans budget, its an undeniably significant expense.

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And you could lose 60% of your initial investment in just five years, Cruze said.

Thats why she recommended buying a used car.

Cars depreciate based onage, mileage and condition.

The mileage and condition are up to you and the previous owner.

Heres how to keep those factors under control so your investment keeps more of its value.

Themost significant risk factorwith a used car is its previous owner.

Before you buy any used car, order a financial history report.

These reports include valuable information about accidents, repairs and ownership transfers.

The details differ based on where you order the report.

Mechanics can catch problems before you notice them, and smaller issues tend to be less costly.

Mileage matters, even on the most well maintained of cars.

Progressive Insurance recommends puttingfewer than 10,000 milesper year on your car to reduce the risk of damage.