7 Middle Class Money TRAPS Keeping You BROKE

[@PenniesNotPerfection]

Are you struggling with any of these middle class money traps?

[@jayocean4724]

Like others have said Cars are the biggest trap and wealth killer. People are spending mortgages on monthly car notes and some family's have multiple brand new vehicles that is halting in gains they are making

[@PenniesNotPerfection]

It’s truly crazy how much income per month goes toward cars in some budgets. I’m always obsessed with those car dealership videos where they say how much they pay per month and it’s $1,000+

[@fredswartley9778]

Car payments are definitely a wealth killer. I experienced this a few years ago when I bought an expensive car that I couldn't afford. The payments were a burden and prevented me from saving and investing.

[@PenniesNotPerfection]

Glad you realized it!

[@astock5794]

I bought a new car last December. We needed a 3rd car. My old car was 14 years old and paid off. We gave that to our son and bought a new car. Had 25% down and qualified for zero percent interest. Didn't get the exact car I wanted, but we went with the best deal. We pay off our cars as quickly as possible and drive them forever. That all being said - it sucks having even a "reasonable" car payment after 10 years of not having one!!! Also we looked high and low for a decent used car at a decent price. Used cars are so expensive now! I was shocked.

[@PenniesNotPerfection]

It’s crazy how expensive cars are now! I’m bracing myself to likely have a car payment again one day because of it.

[@M_SC]

“Need a third car”. I’ve never needed to own a car at all

[@PenniesNotPerfection]

@@M_SC That's awesome but in some places you really have to own a car to get to work or get groceries. And sometimes needed a 3rd car can be for a specific situation or for another driver in the family.

[@tacrewgirl]

Great info. Yeah cars are more expensive since Covid but people are often buying more car than they could afford now than in the past. Many people are on a Ford Focus budgets with Dodge Ram expectations and bills in their low middle class income. Yikes on these $1,000 monthly car notes with 8% interest. 👀 There's nothing wrong with getting a car you want when you can do it within your budget while still saving for a rainy day and retirement. Get a used version. Heck, rent it for a week in vacation.

[@catgodfrey6451]

That’s what we did we rented a 4 door Jeep Wrangler in Key West. It was awesome, but I did hate returning it😂😂😂

[@transitengineer]

Well, it really all comes down to this: would prefer to have a fancy new automobile or, would you prefer to have an extra $75,000 in your investment account. As for myself, I prefer to keep driving my old "humpty" car and, let the $75,000 make me additional annual income (smile ... smile).

[@PenniesNotPerfection]

Yessss! We sometimes rent much nicer cars on vacation and that gives us a little taste of something different but I'm never convinced that it's nice enough to come home and start paying $800 a month for it vs my paid off car.

[@PenniesNotPerfection]

@@catgodfrey6451 A jeep in Key West is a great option!

[@PenniesNotPerfection]

@@transitengineer An extra $75,000 is very nice!

[@BobSure_AKA_PotatoSmasher]

We as Americans are EXCEPTIONAL at dividing ourselves into classes. Define: Middle Class. We spend so much time and energy trying to climb rungs on the invisible ladder of "classes." Do you think if you're "lower class" you should be spending time removing the"lower" from your title?! The answer is NO. Live your life. Live it sensibly. Stop classifying yourself and others according to color, class or financial mobility. #Idiocracy

[@PenniesNotPerfection]

People love to argue over the distinctions! It’s kinda crazy because day to day most of us live pretty similarly.

[@Wellbeingwithmarley]

Great video!

[@PenniesNotPerfection]

Thank you!

[@ZO6Buccaneer]

Anyone who is friends with people who will judge them for having an older car should get new friends.

[@summerjoy247]

I’ve witnessed all of this. Even on budgeting YT channels they’ll have brand new massive car payments, but I’m sure it would be nice to have new cars 😂 We wouldn’t be able to invest much if at all if we had a large car payment…

[@PenniesNotPerfection]

Same, we invest more because we don’t have car payments. We might have to get one eventually but I’m enjoying time without one.

[@thomaschew2191]

Pay off all of your debt and save some in an emergency fund. Then put some portion in an investment fund every payday.

[@PenniesNotPerfection]

Great plan!

[@langhamp8912]

The US is unique in that it requires a fairly high minimum amount of money (per month) just to survive. Most 1st world countries understand that transportation is something that younger people cannot afford, and older people often have difficulty affording, and so they make things like public transportation, walking, and bicycling a priority. However, virtually all Americans regard such alternatives with revulsion, disgust, and contempt. Driving is expensive, and Americans are increasingly realizing they can't afford it even when they buy "cheap used cars" since insurance and maintenance is expensive. And yet you need a car for most jobs; hiring managers can and will send your resume straight to the trash can if you don't. To me, it's the car requirement that needs to be solved before debt, lifestyle creep, or anything else except NIMBY'ism, can even be addressed.

[@catgodfrey6451]

Great Great Video. I would ❤ a new car, but we have 2 pd for nice cars know way I’m taking on a huge pymt. I finally stopped about tens yrs ago keeping up with the Jones. 😊❤😊

[@PenniesNotPerfection]

Right on! Same here, a new car would be nice but the paid for one is even nicer!

[@rkw2917]

I haven't had debt in 40 years, make plenty of money, and am perfectly content to remain in the middle class The rich people that I know are obsessive workaholics who have little enjoyment from their wealth

[@PenniesNotPerfection]

This right here!

[@Wellbeingwithmarley]

I love working 😂

[@Wellbeingwithmarley]

But I understand there’s definitely just my personality

[@PenniesNotPerfection]

It's great to love your work!

[@rogerfarley3300]

Have to disagree a little on the car topic. While there are clearly people who buy new, overly expensive vehicles without much justification, you can't say that for ALL new vehicle purchases. As a person who bought used cars for myself for long commutes, but a new car for my wife to shuttle the kids, I can say that while a reasonable new car is more expensive on the payments ($200 used vs $350 new, and currently $500 new), a new car is much less on repairs for the first 5-10 years, while a used car can be a crapshoot. You are buying someone else's problems. They got rid of it for a reason. I did have peace of mind for my wife's car as I didn't worry about her breaking down and being stranded with the kids anywhere. I got a used car for free as a gift from my MIL.. and still had to put a new front end in it as well as rebuild the transmission at just 130k miles. I have had used vehicles that required a LOT more. Be reasonable... understand what the tradeoffs are. Not ALL situations are the same.

[@guyklose8416]

Leasing cars is a great way to never get ahead! Inhis book, “The Millionaire Teacher”, the author Andrew Hallem makes the point that leasing cars your entire adult life is a million-dollar decision! Even if his numbers are off by a factor of two, it still means that it is a half million dollar sinkhole. That’s a half million more than alternatives… Meanwhile, my last new car was purchased in 1989…my wife’s was around 2002. Since then, used cars. Diverted “savings” to paying off the mortgage, retirement savings, putting two kids through college. Funny, if I looked at it, it’s probably close to a half million. :-)

[@ivobiancucci4528]

My SUV is 19 years old as a single guy its my gold digger repellant

[@PenniesNotPerfection]

Ha, that will do it!

[@DjBaapreB]

Check each month on payday if there is money left from previous month. The first thing you do is transfer that leftover amount to your savings account. This helps your saving habit 😉 Of course, the second step is to transfer a fixed amount to your savings account (paying yourself first).

[@PenniesNotPerfection]

I do this weekly since we are paid weekly! It's always nice to make the savings transfers even if they are small. :)

[@xavierrodriguez1455]

There not much the middle class left .

[@leticiaenraz8514]

My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. Thanks to larysa Caba, my portolio is doing really great and im proud of the decisions i made last year.

[@ivobiancucci4528]

If your unable to purchase the car with cash? YOU can't afford it. Sorry people your Lexus should really be a Toyota Echo

[@PenniesNotPerfection]

Not wrong...

[@FannieWhite-ql7km]

Thank alot you for the content!! All we need is the right advice on how to invest in crypto and we will be set for life. I made over half a million dollars from trading this year regardless of the market conditions😊😁

[@PenniesNotPerfection]

I know a few people made wealthy by crypto but I know even more who lost a lot of money. It's definitely higher risk!