30. Owning A Car They Can’t Afford
In the United States, we care a lot about cars. Whatever you drive becomes a status symbol and says a lot about you as a person. That puts pressure on people to get a nicer car. Public transportation is typically set aside for the poor. Even when people in the middle class need a ride, they often opt for ride-share apps like Uber instead of taking the bus or train. Unfortunately, this lifestyle is not sustainable for many people in the middle class. According to a report by The Washington Post, more than 7 million American people have fallen behind three months or more on their car payments.
In November of 2019, CBS This Morning investigated the situation and found that the vast majority of these cars repossessed are new, American-made trucks and SUVs, instead of used ones. It means that the middle class tends to overspend on their monthly car payment for the sake of appearance. Someone who is savvier with their money would either buy a used car or pay far less for a car made by a foreign manufacturer from countries like Japan and Korea. If you can afford to keep your car, you’re doing well compared to many other people.