{"id":2212693,"date":"2024-04-04T03:46:02","date_gmt":"2024-04-04T07:46:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/confusing-needs-and-wants-is-a-great-way-to-blow-up-your-finances\/"},"modified":"2024-04-04T03:46:35","modified_gmt":"2024-04-04T07:46:35","slug":"confusing-needs-and-wants-is-a-great-way-to-blow-up-your-finances","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/confusing-needs-and-wants-is-a-great-way-to-blow-up-your-finances\/","title":{"rendered":"Mixing up desires with necessities can severely harm your financial health"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fconfusing-needs-and-wants-is-a-great-way-to-blow-up-your-finances%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2212693&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The provided text covers a scenario where a TikTok user expresses frustration over spending $3,000 per month on two vehicles, raising\u200b concerns about financial management and the fine line between needs and luxury. The user&#8217;s high-interest loans and \u2063questionable credit decisions highlight the importance of \u200cmaking wise financial \u2062choices to avoid long-term consequences. The search \u2063results highlight different studies and articles discussing the prevalence of financial advice on TikTok, with a focus on its accuracy and impact. While TikTok serves as a popular \u2063platform for financial \u2062tips,\u200b there are concerns regarding the misleading\u200b nature of some content, emphasizing the\u2064 importance of\u200b verifying information and seeking advice from\u2062 credible sources to make\u2062 informed financial \u2064decisions.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"article-content\">\n<p>Given the frequency with which I spend time attacking the <a href=\"https:\/\/thefederalist.com\/2024\/02\/15\/congressional-report-washington-drowned-americans-in-a-sea-of-red-ink\/\" target=\"_blank\" rel=\"noreferrer noopener\">lack of fiscal discipline<\/a> among lawmakers in Washington, a recent viral video provided a variation on a common theme. In it, a TikTok user complained about paying $3,000 per month on two vehicles in her household.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\"> <span class=\"y0GvYVmraXPRbBn9MohTSDtC2izkeQAKxw5\"><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">What is wrong with people.  $3,000 a month in car payments.  These people pay a mortgage for 2 cars. I just don\u2019t understand. <a href=\"https:\/\/t.co\/LwyxQ4qQ8u\">pic.twitter.com\/LwyxQ4qQ8u<\/a><\/p>\n<p>\u2014 Jimbo P. (@JimboPastoral) <a href=\"https:\/\/twitter.com\/JimboPastoral\/status\/1774142340795359494?ref_src=twsrc%5Etfw\">March 30, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/span> <\/div>\n<\/figure>\n<p>One can only assume that the video, which spent time trending on Twitter on April 1, isn\u2019t just an April Fools Day prank. But even if it started as a practical joke, the video provides valuable lessons in smart financial management, how to practice it, and why it matters.<\/p>\n<div class=\"fdrlst__b89e9-paragraph-2-long d-flex justify-content-center\" style=\"margin-left: auto; margin-right: auto; text-align: center; \" id=\"fdrlst__b89e9-2086528866\">\n<div id=\"div-gpt-ad-1379703300879-0\" class=\"mb-30\"><\/div>\n<\/div>\n<div class=\"fdrlst__b89e9-0ea60e7ed4bac4cc50d375c7fc8d5122 fdrlst__b89e9-paragraph-2\" id=\"fdrlst__b89e9-0ea60e7ed4bac4cc50d375c7fc8d5122\"><\/div>\n<h2 class=\"wp-block-heading\"><strong>Transportation Is a Need \u2014 But Luxury Isn\u2019t<\/strong><\/h2>\n<p>Start with the types of vehicles discussed in the video: a Chevrolet Tahoe, the 2024 model of which has a <a href=\"https:\/\/www.chevrolet.com\/suvs\/tahoe?ppc=MICROSOFT_700000001942432_71700000106980378_58700008283434266_p75280135821&#038;d_src=313715&#038;d_adsrc=3876783&#038;d_campaign=71700000106980378&#038;d_site=MICROSOFT&#038;d_adgroup=58700008283434266&#038;d_keyword=chevrolet+tahoe&#038;gclick=&#038;gclid=e30d2f1a6423167f5c1d4911624b3056&#038;gclsrc=3p.ds&#038;msclkid=e30d2f1a6423167f5c1d4911624b3056\" target=\"_blank\" rel=\"noreferrer noopener\">manufacturer\u2019s suggested retail price<\/a> starting at $56,200, and a GMC Sierra that the user said her husband financed (used) for $78,000. Depending upon the details of the Tahoe purchase (i.e., when they purchased it and what trim model they selected), it seems safe to say the couple spent at least $100,000 and possibly up to $150,000 buying the two vehicles.<\/p>\n<p>In many, if not most, parts of the country, families need at least one vehicle to drive back and forth to work, run errands, chauffeur children to and from school, etc. But going beyond that basic utilitarian use of transportation, to get from Point A to Point B, can quickly transform a critically important \u201cneed\u201d into a discretionary luxury.<\/p>\n<p>Suffice it to say that the \u201cneed\u201d component of transportation stops well before a family spends at least six figures on two vehicles. Buying high-end SUVs, rather than low-end cars, transforms these vehicles into luxuries \u2014 meaning that if the user feels so financially stretched as to complain about the size of her vehicle payments, she should have selected a more economical vehicle in line with her budget.<\/p>\n<p>Add to this fact that the user also claims her household has an Audi, which suggests (at least) three vehicles for this married couple. But an individual can only drive one vehicle at a time, making at least one of these car payments, and quite possibly both, a superfluous luxury.<\/p>\n<div class=\"fdrlst__b89e9-f49139b8305109e48561e78c29f90144 fdrlst__b89e9-paragraph-6\" id=\"fdrlst__b89e9-f49139b8305109e48561e78c29f90144\"><\/div>\n<h2 class=\"wp-block-heading\"><strong>Useful vs. Harmful Interest<\/strong><\/h2>\n<p>The user also complained about 14 percent APR (annual percentage rate) interest on the loan for the Sierra. She noted that even though her husband paid $78,000 for the vehicle in August 2022, they still owe roughly $72,000-$74,000 on the Sierra. Based on that rough math, it appears that 1) most of her husband\u2019s payments have gone toward interest rather than paying down the principal on the vehicle, meaning that 2) they likely owe more on the Sierra than its current value.<\/p>\n<p>Even though interest rates have risen over the past two years, a 14 percent APR on a secured line of credit \u2014 that is, one backed by a vehicle (i.e., the Sierra) that the bank can seize for nonpayment \u2014 seems very high, when GMC is <a href=\"https:\/\/www.gmc.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">advertising<\/a> interest rates (albeit on new rather than used cars) of only 1.9 percent. It suggests the couple in question has questionable credit, as does the user\u2019s suggestion that \u201cmaybe we should just let [my husband\u2019s] truck get repossessed,\u201d which would hurt their credit score even more.<\/p>\n<p>In many cases and likely in this one, interest represents the tax families pay to try to live above their means. Whether paying for pricey SUVs via loans with a 14 percent APR, or putting vacations on credit cards, most of which now carry rates well above 14 percent, interest will allow individuals to ignore the basic laws of budgeting \u2014 money coming in must equal, and in most cases should exceed, money going out \u2014 only for a time. When the music stops, as it surely must, families will find themselves worse off than before.<\/p>\n<p>Only in the case of a mortgage does interest go toward paying something that will rise rather than fall in value over the long run. (It\u2019s the only debt I took on as an adult, and a debt I paid off as soon as I could.) Paying interest on anything else, from a car to a vacation to clothes or jewelry, amounts to a sucker\u2019s bet, in which one pays more tomorrow to fund a pleasure they couldn\u2019t afford today.<\/p>\n<div class=\"fdrlst__b89e9-393cace9514eee4eed0377c8cca6b5c3 fdrlst__b89e9-paragraph-10\" id=\"fdrlst__b89e9-393cace9514eee4eed0377c8cca6b5c3\"><\/div>\n<h2 class=\"wp-block-heading\"><strong>Stop Overspending<\/strong><\/h2>\n<p>In some ways, the TikTok video represents a microcosm of our federal government\u2019s problem, spending too much money we don\u2019t have on politicians\u2019 promises that we cannot afford. It\u2019s why interest on the federal debt now <a href=\"https:\/\/thefederalist.com\/2024\/02\/15\/congressional-report-washington-drowned-americans-in-a-sea-of-red-ink\/\">exceeds<\/a> what we spend on our national defense, and Medicare is already functionally insolvent.<\/p>\n<p>Ultimately, Washington and our TikTok user need to understand the same message: They cannot keep spending more than they take in, for to do so will be the ruination of their family \u2014 and the nation.<\/p>\n<div class=\"fdrlst__b89e9-079f44236ffefb26b921885041c69119 fdrlst__b89e9-after-post-content\" id=\"fdrlst__b89e9-079f44236ffefb26b921885041c69119\"><\/div>\n<hr class=\"wp-block-separator\">    \t\t\t\t\t   \t\t\t\t\t\t\t\t\t<\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A viral video spotlighted extravagant spending habits, revealing a TikTok user&#8217;s frustration over paying $3,000 monthly for two household vehicles. This sheds light on financial issues often criticized in Washington. Such examples emphasize the need for better fiscal discipline and awareness<\/p>\n","protected":false},"author":521,"featured_media":2212694,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/04\/carpayment.png","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[],"class_list":["post-2212693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/04\/carpayment.png","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2212693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/521"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2212693"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2212693\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2212694"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2212693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2212693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2212693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}