GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’ve got the option to read more about oureditorial guidelinesand our products and servicesreview methodology.
These bad habits grow out of commonly held misconceptions that Americans have about theirfinances.
In a recentinterviewposted on Instagram, Sethi critiqued Americans for overspending on cars and houses.
However, homeownership is increasingly out of reach for many Americans.
Today, the median cost of a new home in the United States is $429,800.
But of course, its not as simple as that.
Car Buying
Housing isnt the only area where Americans overspend.
The average cost of a new car today is over $47,000.
If youre buying a used car, the average interest rate on the loan is a whopping 11.91%.
So why are Americans still taking out loans to buyexpensive, inefficient cars and trucks?
Sethi said it grows out of emotional reasoning.
Americans love cars, and it shows up in some peculiar ways.
The minute they have kids, whats the first thing they do?
And so we transfer all of our anxieties to our baby.
Huge mistake, he said.
Sethi said that pouring all that cash intohouse and car loansmay drain resources and cause a lot of unhappiness.
Spend too much on your house, and you may not have anything left over for little luxuries.
Dont ever make a big purchase just because it seems like the right thing to do.
More From GOBankingRates
Share This Article:
