Lets take a look at five stupid money moves Americans should stop making. The Knot 2014 Real Weddings Study reveals couples spend an average of $31,213 just to begin their marriages, not including the honeymoon. In fact, average wedding costs in the northeast range from $34,409 in Baltimore to $76,328 in Manhattan.
As Forrest Gumps mama would always say, Stupid is as stupid does.
Declaring your love to the world no matter the costs may sound reasonable at first, but you have to do the best with what your bank account gives you. The Knot 2014 Real Weddings Study reveals couples spend an average of $31,213 just to begin their marriages, not including the honeymoon. In fact, average wedding costs in the northeast range from $34,409 in Baltimore to $76,328 in Manhattan.
Americans are veering off-course when it comes to affordable transportation. TrueCar.com reports the estimated average transaction price for light vehicles in the U.S. hit $32,957 in 2014, up $778 from a year earlier, and more than half of the annual income of the median U.S. household. Making matters worse, consumers are using debt to fuel their fancy wheels. The average loan amount for a new vehicle jumped $950 year-over-year to a record high of $28,381 in the fourth quarter of 2014. Even used vehicles haul an average loan amount of $18,411.
Making yourself house poor with a McMansion you can’t really afford is a stupid, costly mistake for Americans. The housing bubble collapse tried to treat the McMansion pandemic of yesteryear, but animal spirits are alive and well as the majority of Americans claim to be living in an inappropriate-sized home. According to a new analysis from Trulia, only 40% of respondents say they are living in a home that’s their ideal size, and 43% believe their dream home is somewhat or much larger than their current residence. Several factors influence whether people desire a different-sized home, but every generation as a whole shows a bias toward a larger home.
Some forms of debt are stupid, while others are eye-popping stupid. For example, 12 million Americans are trapped every year in a cycle of 400% interest payday loans. These last-resort loans are so popular, there are more than two payday lending storefronts for every Starbucks location, and rake in an estimated $27 billion in annual loan volume. Repeated payday loans result in $3.5 billion in fees each year. 5 Foolish Things Americans Should Stop Doing With Money