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Author: Vishesh Raisinghani

  • Here are the top 5 states in America most impacted by Trump’s new Social Security rule — do you live in one of them?

    Here are the top 5 states in America most impacted by Trump’s new Social Security rule — do you live in one of them?

    As the changes to Social Security continue, some older Americans may find themselves having to play catch-up.

    In March, President Donald Trump signed an executive order to stop issuing paper checks by September 30 and instead use direct deposit, prepaid cards or other digital payment options.

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    This move might seem inconsequential, but it impacts nearly half a million seniors nationwide. While the White House is determined to modernize the system, many retirees have yet to fully adopt new technologies, putting them at risk of missing essential benefits.

    According to the Social Security Administration (SSA), 485,766 beneficiaries received their monthly Social Security payments via physical check in April.

    With that in mind, here are the top five states where seniors are most exposed to this sudden change.

    Where the end of paper checks will be felt most

    There isn’t a state in the union that doesn’t have someone who still receives their benefits via the post. However, some states expect to weather the change better than others.

    For instance, in the District of Columbia, only 789 retirees received physical checks for Social Security in April. In North Dakota and Wyoming, that number is less than 940. Most seniors who rely on a more traditional form of payment live in one of the largest states or overseas territories.

    In U.S. territories such as Puerto Rico, approximately 6,785 individuals still receive their Social Security benefits through physical checks each month, rather than through direct deposit.

    Among the 50 states, California stands out with the highest number of residents still relying on paper checks for their monthly Social Security payments — exactly 51,649 people. Texas is a distant second with 35,504 recipients, while New York ranks third with 30,676 individuals.

    Despite the widespread push toward digital payments, tens of thousands of Americans remain dependent on traditional check delivery. Florida, often regarded as a top retirement destination for older Americans, is home to many seniors who still receive paper checks. According to SSA data, 30,016 Floridians continue to have their monthly payments delivered by mail.

    Finally, Ohio rounds out the top 5 with 19,769 Americans still preferring paper to digital payments.

    Still, many of these seniors may struggle to pivot to the Trump administration’s change in policy to online payments.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Barriers to modernization

    According to 2024 data from the Pew Research Center, roughly 10% of U.S. adults over 65 do not have an internet connection, which places them at a disadvantage.

    Although Trump’s executive order offers an exemption for individuals who do not have access to banking services or electronic payment systems, many seniors may not qualify for this exemption before the September deadline.

    Recent cuts to the SSA have seen field offices shuttered and staff reduced. That means beneficiaries who do not have internet or have mobility issues may have trouble connecting to the agency in person or by phone.

    Those impacted by the policy change are encouraged to call or visit the SSA to ensure their benefit payments are not disrupted.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Here are 7 ‘bad assets’ that could cause you to retire poor in Canada — how many do you own?

    Here are 7 ‘bad assets’ that could cause you to retire poor in Canada — how many do you own?

    You probably know the importance of retiring with a hefty, well-diversified portfolio of assets. But what if you’ve spent some of your money accumulating things that look like ‘assets’ but are actually hidden liabilities.

    Here are the top seven tempting, but deceptive money drains that many people trap themselves into before retirement.

    1. Brand new cars

    If you’re relatively older and financially secure, splurging on your ‘dream car’ can be the ultimate temptation. Why not buy the toys you’ve always wanted and resell them to someone else who’s just as passionate about motors as you?

    Well, the typical new car loses roughly 30% of its value within the first two years alone, according to Kelley Blue Book. The depreciation rate slows down after those initial years, which means buying a modestly used car at an affordable price is a better way to secure your financial future.

    2. Timeshares

    Spending your retirement on the beach in Cabo Verde is undoubtedly attractive for many people. But there’s a difference between buying a vacation home somewhere tropical and buying a timeshare.

    Unlike property ownership, timeshare ownership involves steep initial costs, recurring maintenance fees, low resale potential and rigid usage schedules.

    On top of that, the secondary market is notoriously poor, and many owners struggle to exit their agreements. Sales tactics can be aggressive, and the contracts themselves are often complex and difficult to navigate.

    Consider creating an annual budget for vacation rentals in your retirement plan instead of locking yourself into these bad deals — you can achieve these goals faster by using a travel credit card as well.

    3. Luxury collectibles

    Yes, there is an active market for luxury collectibles such as vintage cars, designer handbags and luxury watches. But a Rolex probably doesn’t deserve a spot on your retirement portfolio.

    Luxury consumers are a fickle bunch and what’s considered valuable today may not be as valuable by the time you retire.

    Diamonds, for instance, were a popular collectible, but have since seen prices decline by 26% in just the last two years, according to The Guardian.

    With that in mind, avoid the glamorous “assets” and focus on safe but boring investments like corporate bonds or dividend stocks.

    4. Buying a mansion or home upgrades

    It’s nearly irresistible to think of your primary residence as the bedrock of your retirement. Collectively, Canadians are sitting on an estimated $4.7 trillion in home equity, which is the largest pool of private wealth in the country, according to Clay Financial.

    However, it’s possible to go overboard with this investment. Buying a house that is far beyond your budget or too big for your needs can make it tougher to pay off the mortgage or maintain the property when you’re on a fixed income. It’s also a good idea to avoid excessive and frequent renovations to try and add value to the property.

    Instead, focus on minimizing costs and debt, and consider downsizing to tap into some of that built-up equity to make your retirement more flexible and comfortable.

    5. Lottery tickets or speculative investments

    Buying lottery tickets or pouring money into unproven and speculative investments is rarely a good idea, regardless of your age. But the risks are magnified when you’re older and approaching the end of your career.

    Instead of indulging in wishful thinking that a meme-worthy cryptocurrency or random penny stock is going to make you rich overnight, consider the safer path to retirement. Focus on blue chip dividend stocks, bonds or gold.

    6. Multiple or excessive mortgages

    Rental income from a robust portfolio of real estate is a great way to enhance your passive income in retirement. But if you’re at the end of your career and rely on a fixed income, you should recognize the fact that your capacity for risk is much lower.

    With this in mind, consider lowering or paying off all the mortgages on your rental properties. If you can’t, sell a few units to pay off the loans on others in your portfolio.

    As a retired landlord, you can’t afford a sudden housing market crash or interest rate volatility.

    7. Whole life insurance

    Despite what the insurance salesman has probably told you, whole life insurance isn’t an ideal retirement vehicle.

    These plans can be five to ten times more expensive than term life insurance, according to PolicyMe, and you have limited control over how the capital is invested.

    Instead, focus on relatively simple financial instruments that offer steady cash flow and greater control.

    Sources

    1. Kelley Blue Book: Car Depreciation Calculator

    2. The Guardian: Diamonds lose their sparkle as prices come crashing down, by James Tapper (Jan 25, 2025)

    3. Clay Financial: 7 Ways To Access Your Home Equity in Canada (Apr 18, 2024)

    4. PolicyMe: Term Vs Whole Life Insurance: What’s Better? (Nov 9, 2023)

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • A shocking 50% of America’s parents with adult kids still support them financially — to the tune of $1,500/month. But it’s having a disastrous impact on retirement plans. Do this instead

    A shocking 50% of America’s parents with adult kids still support them financially — to the tune of $1,500/month. But it’s having a disastrous impact on retirement plans. Do this instead

    The cost-of-living crisis has pushed many young Americans to rely on the bank of mom and dad to make ends meet.

    According to a recent report by Savings.com, roughly 50% of Americans with children over 18 provide regular financial support.

    On average, these young adults received $1,474 in monthly support, with the average Gen Z American expected to receive $1,813 per month and the average millennial expected to receive $863 monthly in 2025.

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    However, parents also face the same cost-of-living challenges as their children. Here’s how their efforts to support their adult children could be putting their financial future and retirement at risk.

    Risking retirement

    Savings.com also found that working parents who financially support their adult children spend more than twice as much on this support as they do on monthly retirement contributions. On average, these parents are setting aside just $673 for their nest egg, according to the report.

    Seniors across the country already face a retirement crisis. Nearly 20% of adults over the age of 50 have no retirement savings at all, according to AARP. Meanwhile, 61% of them worry about running out of funds after they leave the workforce.

    A shocking 80% of seniors across America are either financially struggling now or are at risk for economic insecurity in retirement, according to a 2024 survey by the National Council on Aging.

    Many parents risk becoming part of this cohort of struggling retirees by contributing more to their children’s lifestyle than their own savings and investment accounts. Here’s how you can avoid the same trap.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Setting boundaries

    Although you may feel obligated to assist your children, you also have an obligation to your future self. Balancing the needs of your retirement planning and those of your children is tricky, but essential.

    Talk it out

    It is a good idea to have an open conversation with your adult children and to set clear limits and boundaries on your financial assistance. For instance, you could set a hard limit on how much you give them to keep those monthly payments below that of your investment contributions.

    Conditions apply

    You could also offer financial assistance with strings attached. If your child wants to keep receiving monthly assistance, encourage them to look for new employment, side gigs or further education. You could also offer assistance as a loan with a fixed repayment agreement.

    According to Savings.com, 77% of financially supportive parents have specific conditions attached to their monthly payments.

    The cutoff

    Finally, you could also set an age limit for assistance. Cutting kids off at 25 or 30 seems reasonable, and a time limit could encourage your children to make arrangements for their economic independence.

    Savings.com found that while 18% of parents expect to continue supporting their adult children in perpetuity, most hope to wean them off within four years or less.

    Setting boundaries could require uncomfortable discussions with your kids. However, managing expectations is critical if you don’t want your plan for financial security to jeopardize your relationships.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • This Florida dad revealed shocking $1,400 price tag to take family to Disney World — for just 1 day. How the ‘outrageous’ costs add up fast (plus 5 smarter ways to spend your vacation cash)

    This Florida dad revealed shocking $1,400 price tag to take family to Disney World — for just 1 day. How the ‘outrageous’ costs add up fast (plus 5 smarter ways to spend your vacation cash)

    Walt Disney World is often called the “Happiest Place on Earth,” but lately it’s also looking like one of the most expensive.

    In a recent viral video on X, formerly Twitter, an unnamed father of three shared his family’s total expenses for a trip to the theme park, which left many users shocked.

    Altogether, the man says he spent $1,391 for a single day at the flagship park in Orlando. That doesn’t include the family’s expenses for traveling to the park since they live in Florida.

    “This place was my literal hell,” lamented the visibly tired father. For many, the video validated their choice to avoid the theme park altogether.

    “I’ve been fighting with my wife on this,” said one X user. “She wants to take the kids to Disney when they get older and I’m trying to tell her that it’s outrageous and it will NOT be fun.”

    Here’s why Disney’s rapidly escalating costs are driving away many potential visitors.

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    Higher costs squeezing out the middle class

    The costs of a typical four-day visit to Walt Disney World have surged 32% since 2020, according to Touring Plans, a theme parks data provider.

    Much of the spike can be attributed to new costs for add-ons that were once free, such as line-skipping, but Disney has also been raising prices for tickets at a rate faster than inflation, according to the Wall Street Journal.

    While two adults and two children staying at the park for four days can expect to spend $4,266, the typical middle class budget for an annual family vacation is roughly $2,000, according to a Touring Plan’s analysis of 2023 Labor Department data.

    In other words, families with low and modest income are getting priced out of the Disney World experience.

    In fact, they’re also losing out on other theme parks, as Universal Studios, Cedar Fair and SeaWorld have also been raising prices since the pandemic, according to WSJ.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    5 smarter ways to spend on vacation

    Whether you’re planning a trip to Disney World or anywhere else this summer, there are ways to minimize the costs if you plan the trip carefully.

    Traveling off-season, for instance, could reduce the overall cost of your family vacations. Visiting Disney World in September, January or February might involve lower ticket prices and cheaper hotel stays, but also comes with uncomfortable weather, according to Travel and Leisure.

    Seeking out loyalty points and discount programs is another way to reduce your family’s cost burden.

    According to the Disney Tourist Blog, “Summer 2025 marks the most aggressive discounts we’ve seen in a long time,” so it’s worth checking the website to see if you can snap up a good deal.

    Your family can also reduce costs by planning meals and carrying snacks. Restaurants and cafes at theme parks tend to be overpriced, so this could be the key to staying within your budget.

    Another way to safeguard your budget is to limit the number of souvenirs your family buys. Set a quota or dollar limit on how much each child can buy per trip and try to avoid the gift shop as much as you can.

    Finally, travel costs can be reduced significantly if you drive to the park instead of flying there or book flight tickets in advance. Using public transport could also eliminate the costs of parking.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘This is a tragedy’: Mark Carney warns the 80-year period of US economic leadership ‘is over’ — says America is no longer the anchor of global trade. Here’s how to survive the ‘new reality’

    Trump’s “Liberation Day” may be the first step in America’s exit from its role as the world’s economic anchor and trusted trade ally. That’s according to Canadian Prime Minister Mark Carney, who didn’t hold back in a press conference shortly after reciprocal tariffs on U.S. autos were announced.

    “The system of global trade anchored on the United States … is over,” Carney said during the recent announcement. “The 80-year period when the United States embraced the mantle of global economic leadership … is over. While this is a tragedy, it is also the new reality.”

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    As the former head of both the Bank of Canada and the Bank of England, and an Oxford-Harvard trained economist, Carney certainly has the experience needed to help Canada navigate this new reality. But his stern warning is rippling far beyond Canadian borders.

    According to the BBC, world leaders, including EU Commission Chief Ursula von der Leyen and Japan’s Prime Minister Shigeru Ishiba, say the ongoing trade war will have “dire” consequences for millions of people across the world and undermine the global trading system.

    Here’s why the chorus of concern continues to expand and how you can prepare for what’s to come.

    The world’s largest buyer

    The U.S. isn’t just the largest economy in the world, it’s also the largest consumer of goods and services.

    In 2023 alone, the U.S. imported goods worth $3.17 trillion in aggregate, according to Visual Capitalist’s coverage of World Trade Organization data. China, the second-largest economy in the world, is a net exporter, according to the Financial Times.

    As a result, the global economy heavily relies on American consumption, and any trade barriers, such as tariffs or embargoes, could have severe consequences for nearly every country.

    This is why Carney is warning that the Trump tariff policy could “rupture the global economy.”

    There are plenty of signals validating this thesis. Global stock markets have shed $9.5 trillion in total value since early April, according to The Street, while JPMorgan’s probability forecast for a U.S. recession this year sits at 60%.

    However, this isn’t the first time the world has faced an economic calamity, and there are ways you can prepare your finances for a tough road ahead.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Safe havens

    There’s no way to predict what the economy could look like a few months from now. But there are ways to protect your wealth and household budget right away.

    Recessions usually coincide with a sharp surge in layoffs and unemployment, so building up a larger-than-usual emergency fund could bolster your family’s finances if you happen to lose income.

    Cutting back on discretionary spending and adding a margin-of-safety to your annual budget could help you mitigate the added costs of these import tariffs.

    Estimates by the Yale University Budget Lab conducted after the “Liberation Day” announcement suggest that the typical American household could see an average purchasing power loss of $4,700 in 2024 dollars due to the trade war.

    For your investments, you could consider a safe haven asset such as gold to protect some of your wealth.

    Each ounce of the yellow metal has increased in price by more than 20% over the past six months, and some investors are retreating to it as a safe haven during market volatility.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Even Joe Rogan blasted Trump’s tariff war with Canada as ‘stupid’ and ‘ridiculous’ — urges America to ‘become friends’ again with its neighbor, dismisses ‘51st state’ rhetoric. Here’s why

    Trump’s escalating trade fight with Canada is sparking backlash in an unlikely place: his own fanbase. Joe Rogan, a high-profile Trump voter and supporter, slammed the economic standoff as “stupid.”

    ‘Why are we upset at Canada?” he asked fellow comedian Michael Kosta on a recent episode of his podcast The Joe Rogan Experience, “This is stupid, this over tariffs … We got to become friends with Canada again, this is so ridiculous. I can’t believe there is anti-American, anti-Canadian sentiment going on. It’s the dumbest f— feud.”

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    And it’s not just tariffs rubbing him the wrong way. The 57-year-old also took a shot at Trump’s talk of annexing Canada, quipping, “I don’t think they should be our 51st state.”

    Recent surveys seem to indicate that most Americans and Canadians share Rogan’s sense of frustration with the ongoing economic battle.

    ‘Dumbest trade war in history’

    Trump has imposed a 25% tariff on Canadian steel and aluminum imports, automobiles and any Canadian imports not compliant with the U.S., Mexico, Canada (USMCA) trade agreement. He’s imposed a lower 10% tariff on Canadian potash and energy imports, according to the Conference Board’s live tracker.

    Trump proposed that Canada could avoid the trade war by joining the U.S. Few people on either side of the border support this idea.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Angus Reid polled Canadians and found 90% of Canadians would vote “no” to joining the U.S. Meanwhile, 60% of Americans are against the idea, and 32% would only consider it if Canadians are onboard.

    The trade war is just as unpopular, with only 28% of Americans in favor of tariffs on Canadian imports, according to a survey by Public First. These economic moves are so unpopular and unjustified that the Wall Street Journal labeled it “The Dumbest Trade War in History”.”

    Whether this growing chorus of criticism convinces the Trump administration to dial back trade tensions remains to be seen. For now, consumers and investors must deal with a volatile economy.

    How to prepare

    It’s probably a good idea to make strategic moves to protect your budget and investments for the foreseeable future.

    The stock market has plummeted in response to the administration’s trade policy, prompting some investors to seek a safe haven. The price of gold is up 13% over the past six months as more investors add exposure to this hard asset.

    Meanwhile, consumer behavior is shifting in response to tariff threats. If tariffs push prices up, nearly half of shoppers say they’ll buy less often.

    Another 40% are ready to swap for cheaper brands, and half are open to secondhand or local alternatives, according to a poll by Smarty, a shopping rewards app.

    The survey also found that many consumers are adopting a “buy now before prices spike” approach to major purchases, such as cars and home appliances. Moving up big purchases and buying essentials in bulk could be a great way to avoid or minimize the costs of this trade war.

    Over the long term, if this economic battle persists you may need to add a margin of safety to your annual household budget. If you assume auto parts, clothes and food will cost roughly 25% more in the future, you can bolster your personal finances even if this trade conflict is resolved and the price hikes don’t materialize.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘You’ve made a colossal mess’: Dave Ramsey left speechless after Seattle man borrowed $80K from in-laws for trailer parked on their ‘dirt’ — now things are awkward. 3 crucial takeaways

    ‘You’ve made a colossal mess’: Dave Ramsey left speechless after Seattle man borrowed $80K from in-laws for trailer parked on their ‘dirt’ — now things are awkward. 3 crucial takeaways

    Jeremy from Seattle, Washington, believes his recent purchase of a recreational four-wheeler was a “dumb decision.”

    Speaking with finance guru Dave Ramsey on a recent episode of The Ramsey Show, the young man said his new “toy” is irritating his parents-in-law because they want him to focus on repaying $80,000 he borrowed from them to buy a manufactured home that sits on their property.

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    Ramsey quickly pointed out that purchasing the four-wheeler isn’t his biggest mistake: “You have a $80K trailer and you don’t own the dirt? Oh god, wow,” he said. “You guys have made a colossal mess.”

    “You’re playing Russian Roulette and there’s three bullets in the gun — not one,” Ramsey said.

    He offers three reasons why Jeremy’s deal with his family is a brewing financial disaster.

    1. Leaving collateral on “someone else’s dirt”

    Jeremy’s housing situation is precarious because he doesn’t have control over the land on which his home sits.

    Millions of Americans live in manufactured homes across the country, according to the Pew Charitable Trust, and 35% of those who financed their purchase have a “home only loan.”

    That means they owe money on something that almost always depreciates in value compared to a house. And on top of that, they lack control or ownership over the land, which is typically an appreciating asset.

    “You do not have control of the situation,” Ramsey explained to Jeremy. He points out that if anything were to happen — like say the in-laws were to cause a car accident and face a lawsuit as a result — the dirt under their trailer could be taken from them.

    “They have no control over that and you have no control over that. So you have set yourself up. And I’ve seen this a thousand times in 30 years of doing what I do — not owning the dirt under your trailer is a massive mistake.”

    2. Pitfalls of borrowing from friends and family

    Jeremy’s situation is exacerbated by the fact that his loan was borrowed from his family.

    Nearly 37% of recent homebuyers in the U.S. financed their purchase with some financial assistance from their parents or grandparents, whether that be co-buying, gifting them the deposit or allowing them to live rent free to save up for the purchase, according to Compare the Market.

    However, a study published in the Journal of Consumer Psychology found that borrowing money from loved ones complicates the relationship and can lead to feelings of animosity.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Jeremy is certainly feeling the strain in his relationship with his in-laws, which is why Ramsey recommends getting out of the deal. He wants Jeremy and his wife to sell the manufactured home (even if they’re to take a loss on it), repay their debt and start over renting somewhere else.

    “Borrowing 80,000 from your in-laws for anything for any reason is a massive mistake,” says the finance guru.

    3. Setting clear boundaries in every deal

    Unwinding Jeremy’s messy housing and financial situation could take some time. In the interim, Ramsey recommends having an open conversation with his in-laws to set clear expectations and boundaries.

    “You just sit down and say, ‘I thought our deal was I pay you monthly payments and you’re happy but now it’s I pay you monthly payments and I have to check with you before I buy anything and that’s not a deal I’m okay,” he recommended.

    Getting on the same page should help stabilize the relationship. While Ramsey doesn’t agree the in-laws were right about their indignation that Jeremy chose to indulge in a $6,000 toy as long as Jeremy was upholding his end of the deal, he does point out he put himself in this precarious position.

    Ramsey’s cohost Ken Coleman then piped up to offer Jeremy some “salve” after Ramsey’s scorching advice.

    “Walk away from this to realize it could have got a lot worse, and this thing can get nastier if you don’t fix it now. And I could not say that enough. You can dig out of this but I would start digging quickly.”

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • The US car market is bankrupting Americans — and it’s only going to get worse. Here’s how to save thousands of dollars if you want to buy a car soon

    The US car market is bankrupting Americans — and it’s only going to get worse. Here’s how to save thousands of dollars if you want to buy a car soon

    The U.S. car market faces a perfect storm that is rapidly engulfing ordinary car owners across the country. The clearest sign of this is the rising rate of auto loan borrowers who are falling behind on their monthly payments.

    As of January this year, 6.6% of subprime auto borrowers were at least 60 days past due on their loans, according to a report by Fitch Ratings.

    This is the highest rate since Fitch started collecting this data in the early 1990s. And things are not expected to get better. The report says the subprime segment of the auto loan market faces a “deteriorating outlook” for the rest of 2025.

    Don’t miss

    This is alarming given the size of the auto loan market. At the end of 2024, households collectively held $1.66 trillion in auto loan debt, according to the New York Federal Reserve.

    Not only is that larger than the outstanding student loan balance but it’s also the largest source of non-housing debt for all households in aggregate.

    Here’s how our cars transformed from symbols of freedom to symbols of unsustainable toxic debt.

    How did we get here?

    The foundation of today’s crisis was laid five years ago during the pandemic. Supply chain disruptions and factory closures at the time created strange dynamics that pushed car prices higher.

    In January 2022, 80% of new car buyers paid more than manufacturer’s suggested retail price, or MSRP, according to Edmunds. Used car prices were rising faster than new car prices at the time, according to Cox Automotive.

    In other words, car buyers paid too much for their cars. Now, values have declined while many owners have seen a steady rise in interest rates. This shift has pushed many car owners underwater on their purchase.

    In fact, 1 in 5 vehicle trade-ins near the end of last year had negative equity of $10,000 or more, according to Edmunds. The situation is grim and the outlook is just as bleak.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    What comes next?

    While the auto market is dealing with rising interest rates and dropping prices, it’s now also facing the additional challenge of President Donald Trump’s trade war.

    Roughly 50% of the cars Americans purchased in 2024 were imported from other countries, usually Canada, Mexico, Japan and the EU, according to the Trump administration.

    Even domestic car makers rely on auto parts from other countries, which is why the administration recently stepped in to offer some rebates to domestic producers.

    Nonetheless, vehicles and auto parts currently face a 25% tariff. As a result, most cars under the price of $40,000 could see a price hike of roughly $6,000, according to Kelley Blue Book.

    Since the price hike comes at a time when consumers are already feeling squeezed, it’s unlikely that manufacturers can pass these costs along to them. Instead, many are cutting costs and reducing their workforce.

    Hundreds of General Motors and Stellantis autoworkers have been laid off already, while Ford CEO Jim Farley has also warned about potential layoffs ahead.

    Potential car buyers and owners need to prepare for this tough market.

    Protect yourself

    According to Kelley Blue Book, if you’re looking to buy a new car in this market it’s probably better to do so before the tariff impact trickles down to the price tag.

    However, given where interest rates and prices currently are, try to stick to a tight budget while shopping.

    Buying a relatively cheap used car or leasing one if you can find a good deal is probably a good idea.

    If you’re a car owner struggling with auto loan debt, consider trading it in for a cheaper model to reduce the burden. If you own multiple cars, it might also be a good time to sell one to reduce your loan exposure.

    It’s also worth considering refinancing or shopping around for a better auto loan interest rate. Locking in a good deal with attractive terms today could shield you from the volatility that potentially lays ahead in the car market.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘Where the flip are you people spending money?’: Dave Ramsey couldn’t believe this LA couple who earn $300,000/year — but still drown in $119,000 of debt. Here’s where their income goes

    ‘Where the flip are you people spending money?’: Dave Ramsey couldn’t believe this LA couple who earn $300,000/year — but still drown in $119,000 of debt. Here’s where their income goes

    Amber and her husband have successfully reduced their non-housing debt burden from $160,000 to $119,000 in just one year.

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    For most people, that would be a massive achievement. But for personal finance celebrity Dave Ramsey, this rate of progress and the outstanding debt burden is “embarrassing.”

    That’s because the Los Angeles-based couple both work as engineers and earn a combined annual income of $300,000, much higher than the median household income for the city, which is $87,760.

    Surprisingly, their monthly mortgage payments are just $5,000, which means the house isn’t the root cause of their financial trouble.

    “It takes $60,000 a year to pay your house payment, so if you were to live on $200,000, you would be debt-free in a little over a year,” Ramsey told her on a recent episode of “The Ramsey Show.” “Kind of sounds absurd when I say it that way, doesn’t it? Where the flip are you people spending money?”

    Digging into the details, he discovered how easy it is for high-income households to slip into bad spending habits and unnecessary debt.

    Reckless spending habits

    Since the monthly mortgage payments are not outrageous, Ramsey suspected Amber and her husband have a reckless spending problem that’s preventing them from paying off their debt. “Your lifestyle is eating you alive somewhere,” he said.

    Amber said they had several unexpected expenses recently, like needing a new AC, furnace and fence around their property, and she also admitted they like to take vacations since their work is taxing. Her husband even had to sell one of his cars to pay off a contractor to fix a leak they had.

    But Ramsey wasn’t convinced. “A furnace doesn’t throw this thing off as far as it’s off. We’re off $100,000 a year.”

    Their situation highlights how many high-income households succumb to lifestyle creep. About 36% of Americans who earn more than $200,000 annually report living paycheck to paycheck, according to a 2024 study conducted by PYMNTS.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Despite their high income, many individuals in this bracket seem to struggle to build savings or get ahead financially.

    Among these high earners, 17% cited poor financial habits as the main reason they do not save.

    To manage the debt, Amber said she’s considering a Home Equity Line of Credit (HELOC) that could consolidate the remaining $119,000 balance. However, Ramsey is convinced that’s a bad idea.

    Debt consolidation is a "con"

    Consolidating consumer debt with a HELOC may be considered a savvy financial move by some. After all, HELOCs tend to have lower interest rates than many forms of consumer debt and it’s easier for most people to make a single debt payment rather than manage multiple different forms of credit every month.

    However, Ramsey isn’t a fan of this financial engineering maneuver. “No you should not try to borrow your way out of debt,” he bluntly told Amber. “It’s a con, because you don’t change a person in your mirror, your habits are still there. You’re going to go right back into debt.”

    Instead of consolidating, he recommended cutting back on spending to start setting aside $8,000 a month to pay off the debt.

    Although it’s difficult to shift spending habits overnight, if Amber and her husband can manage to do so they might be able to achieve debt-free status in just 15 months.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Warren Buffett has a ‘big worry’ over the US dollar ‘really going to hell’ — warns fiscal policy is what really scares him in America. Here’s why (plus 3 ways to protect yourself now)

    Warren Buffett has a ‘big worry’ over the US dollar ‘really going to hell’ — warns fiscal policy is what really scares him in America. Here’s why (plus 3 ways to protect yourself now)

    With a whopping $348 billion in cash on his company’s balance sheet, it’s easy to assume Warren Buffett has no worries at all.

    But in a recent meeting with Berkshire Hathaway shareholders, the legendary investor admitted that he’s worried about the eroding value of the currency in which that cash hoard is held.

    Don’t miss

    “We wouldn’t want to be owning anything that we thought was in a currency that was really going to hell, and that’s the big thing we worry about with the United States currency,” he said candidly.

    Here’s why the Oracle of Omaha is getting anxious about the future of the greenback.

    Dollar’s decline

    Buffett’s concerns about the value of the U.S. dollar stems from his observations of the government’s spending under President Donald Trump.

    Despite the Trump administration’s efforts to curb spending, the government spent $200 billion more in the first 100 days of Trump’s term than in the same period last year, according to CBS News analysis of U.S. Treasury data.

    At the same time, Trump is proposing tax cuts.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    “Fiscal policy is what scares me in the U.S.,” Buffett said. “All the motivations are to do things that could cause a lot of trouble.”

    The U.S. dollar index — a measure of the currency’s value against a basket of foreign currencies — has already dropped more than 8% since the start of the year.

    The Bipartisan Policy Center notes that a higher national debt (which could result if the government spends more while at the same time reducing income taxes) undermines U.S. creditworthiness and devalues the dollar.

    Any further erosion in the dollar’s value could impact your purchasing power. There are ways to protect yourself.

    3 ways to protect yourself

    If you’re worried about the value of the U.S. dollar and its impact on your portfolio, there are assets that could insulate your wealth.

    1. Gold is a good option. Investors tend to see the yellow metal as a safe haven in times of uncertainty.

    This year, the asset class is certainly living up to its reputation. An ounce of gold is up more than 20% in the past six months, currently trading for over $3,300.

    You don’t need to buy bullion to add exposure to this asset class. Instead, consider an ETF like SPDR Gold Shares (GLD).

    2. Add exposure to real estate through a real estate investment trust, or REIT. [Realty Income (O)](https://www.realtyincome.com/ is a REIT with 15,600 properties in all 50 U.S. states, the U.K. and six other countries in Europe.

    The stock is up 6.76% year-to-date, which means it has outperformed the S&P 500 over the same period. The stock also offers a 5.66% dividend yield, which is an added bonus for investors.

    3. Consider niche hard assets to bolster your portfolio. Digital Realty (DLR) is a real estate trust that focuses exclusively on data centers across the world.

    The firm manages a portfolio of over 300 data centers across more than 25 countries. Although the stock has lost 5.88% of its value year-to-date, its 2.9% dividend yield buffers some of those losses.

    The company is also likely to benefit from the growing need for data centers to power the AI revolution, which should minimize the impact of U.S. dollar weakness.

    Like Buffett, taking a cautious and defensive approach to your portfolio could help you sail through the ongoing volatility.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.