Why Most People Can’t Afford A Home & Car

Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.

Thanks for watching, I appreciate you!

[thomaschew]

"Banks are not your friend"

This is one of the top rules of life, once you get that life becomes so much more enjoyable.

[DKNY]

The problem isn't the interest rate, it's that the median price has gone from 250K to 440K.
Interest rates were over 10% before and people could still afford a house.

[johnmiller]

After my wife went back to work our income with 3 kids was $50, 000 a year. We bought a $145, 000 house and it was hard to keep up with the maintenance. Something is wrong with our Country with most young people unable to buy a home

[leisureblank]

Always compare the price of a new car with the price of a used car. At my Toyota dealer, the price of a used and new Corolla were pretty comparable every time I have bought a car. I am older…65. In the 70s when the price of gas skyrocketed the manufacturers went to smaller cars, and that is what the public demanded. It seems like now people demand the top of the line whether they can afford it or not.

Here is a secret you should know. The Jones’s have their 3rd bankruptcy on the horizon. I don’t need to be the Jones’s cause I am just fine on my itty bitty pension. Cause I learned through out my life to live comfortably and below my means.

[stevemelby]

When I was younger I bought cars that I shouldn't have which also led to higher and higher credit card debt. For 8 years I drove around in beautiful cars but those years are now filled with regret. I turned things around and set a limit of 25% DTI for ALL expenses to make up for lost time and continue to live that way today, 20 years later. I learned that true freedom wasn't driving around in a convertible with the top down. It was having the peace of mind knowing I was financially sound.

[brandon]

Erin! Most important comment here… thank your husband and your commitment to service! 👍👍

[donjohnson]

A car and housing are the two biggest expenses, but, you cannot leave out the “expense” of wealth creation. By keeping your transportation and housing expenses low, you have more money for wealth creation (through investment). Time is on your side if you start early in life and live well within your means. The saddest sight is seeing someone needing to work well beyond retirement.

[ironuckles]

I feel completely hopeless about home ownership. I make a good salary but the prices in my area have increased so much in the last 2-3 years along with rates more than doubling, there is almost literally nothing I can afford. At the same time, there is also not much inventory available which is partly what keeps prices so high. I don't know if people are going to own homes in the future unless something major changes.

[lowstringc]

My rule tends to be “DIY as much as possible, and do a balance of quality and cheaply or don’t do it”. If I cant, then I content myself without (not that hard to do because contentment is a state of mind, not a state of being…). My house is paid off and my car was bought cash and I’m saving as much as I can while still being able to live a little and enjoy the little “luxuries” I can afford.

[southbound]

If one value's their wealth then NEVER NEVER NEVER buy a German car used or new. As a technician I know. You've been warned.

[cheesemaster]

this eats away at me every day, washington needs to stick up for the little guy. Instead we have every rich person and investment company picking up these houses for inflated prices to flip them for a profit or to rent them out...enough is enough

[kensporalsky]

When they can’t sell 2500 sq foot homes. They will go back to building 1200 sq foot homes. All of the sudden homes look a lot cheaper. The typical home is to big. So quit thinking that way. My first home was 1000 sq feet. Was great.

[mashort]

That was really interesting, thank you. I’m convinced that the best financial decision my wife and I ever made was buying our condo. It was a scary proposition at the time but my grandfather sold it to us in 2014 for $210K, which was about $25K below market value at the time. We have a very affordable mortgage payment, we’re in an excellent community and have plenty of space as presently constituted. Our home has enabled us to build our wealth in ways we otherwise never could have.

[jezzarisky]

Generally with a paid off car there is still two things to consider: Either the amount needed to cover upcoming costs to maintain and repair it down the line, or towards replacing it when the current car feels too expensive as parts need to be replaced(of course this 'car payment' benefits you mildly as you can gain interest on these payments/savings). This is often cheaper than buying a new car certainly, but you're never really saving money by having a car(even a paid off car), and especially by driving it.

[larrykramer]

Another piece of advice is once you pay off your car, keep putting that same monthly payment into a saving account so you can pay cash for your NEXT car and never have a car payment again!

[markhalstead]

The average American is over their head on their vehicles. I see full size trucks and full size SUVs as being very prevalent on the roads. Next up is the smaller SUVs. Sedans are at the bottom of the list as far as numbers, but yet they are probably what most should be buying.

[sergiosantana]

And inspite of being able to qualify for that 30year loan with the front end income to debt ratio of 28% many followed Dave Ramsey's advice of not to buy until you can qualify for the 15 year loan.
Following this advice kept many from buying a house with a low fixed intrest rate and turned them into lifetime renters with the rent payment eating away 35/40% of their income .

[larrykramer]

We are becoming a nation of renters as the cost of housing rises faster than inflation. I couldn't afford the buy the house I live in now that I bought in 2016. It has gone up over 400k in value and interest rates are much higher today. I have a 30 year 2.875% rate until 2050 so I cannot afford to move even though I would like to.

[tonyflaminio]

Not sure we knew any of these rules when we were first married. But we stayed in our first house for 24 years and we only bought used cars or kept new ones for at least 10 years.

Great video Erin!

[jayafow]

Everything is based from gross income I think that is a mistake should be based off of net because federal and state taxes, medical, ss are taken out. Then you have a more accurate picture