upworthy

Learning

Learning

In two sentences, finance guy crushes the idea of buying a new car. But people disagree.

Here's why people are still doing it.

via Canva/Photos

A woman gets the keys to her new car.

There are many reasons to be squeamish about spending money in today’s economy. Interest rates are high, trade wars may drive inflation, and financial experts say we may be headed for a recession. That comes after the post-COVID period, when the process of everyday necessities, such as rent and groceries, went sky-high.

There’s a lot of economic uncertainty out there, but that won’t stop some of us from needing a car. And, of course, those are getting more expensive, too. The average car cost $49,740 in January, nearly an all-time high. Part of that is inflation, but it’s also because Americans love buying nice cars, and more are choosing luxury models. So now, to purchase a new car at $49,740, with zero dollars down and a 5-year loan, would cost over $950 a month. That’s a lot of money for something that will only decrease in value.

Real estate expert and author of “Retire FIlthy Rich,“ Ravi Sharma, wasn’t shy about sharing his thoughts about buying a new car on TikTok. The post received over 1.2 million views.

"Controversial topic: That $50,000 car loan that you finally paid off after 5 years cost you $62,000 (due to interest). That car is now worth $20,000 due to depreciation. Losing $42,000 in 5 years would be seen as a bad investment, yet people are still buying new cars. Thoughts?"

@personalfinancewithravi

Controversial Topic - What’s your thoughts about this? 🤔 #personalfinancewithravi

Is it financially smart to buy a new car?

Sharma’s logic is hard to argue with. A car is a depreciating asset that will lose its value over time. In fact, according to Kelly Blue Book, the average new car loses 20% of its value after the first year. That number grows to over 60% after five years. So, why not buy a car that’s five years old, costs less money, and is significantly cheaper to insure?

Strangely, most people in the comments pushed back against Sharma’s logic. "You forgot to factor in the benefit of owning that vehicle and the pleasure of driving it. For most, it's priceless. Not everything in life is about making money," Patty wrote. "I have 3 bad investments and loving them. We only live once. Enjoy,” Rich added. Others noted that even though the car's value goes down, you got use out of the vehicle so it's not a total loss.

new car, finance, ravi sharmaA woman inspects her new car. via Canva/Photos

There were a few people who agreed with Sharma. "Yes! Car payments are one of the top wealth killers. I have always bought used and paid cash,” a commenter wrote. "Amen. I’ve never purchased a brand-new vehicle. If you want to be a millionaire, don’t live like one,” another added. "Just driving the new car off the lot depreciates it by 20-25%. Buying pre-owned, someone else took that depreciation. Don't believe me? Buy a $50k new car then try to sell it tomorrow,” a commenter wrote.

Many people pushed back against Sharma because buying a new vehicle gives them joy. But the real question is, how long does that last before it just becomes your everyday car and no longer has the wow factor it had when you drove it off the lot? Further, going back to our car that cost $49,740 and about $950 a month, what if you bought a car for half the price and invested the $475 a month of the payment in a sensible mutual fund? After 5 years at 6% of growth, that would amount to over $32,000.

new car, finance, ravi sharmaA woman gets the keys to her new car.via Canva/Photos

With the constantly rising cost of living, it’s good to consider what it really means to make a big purchase and whether the joy of something new is worth the loss that comes with spending versus investing. Ultimately, the decision comes down to one’s values and financial priorities. Is short-term satisfaction worth the long-term cost when opting for a used car means more financial freedom tomorrow?

From Your Site Articles
economics
Education

Never know how to answer the 'What do you do' question? This simple formula can help.

How many times have you been asked, "What do you do?" and not known what to say?

Photo credit: Canva

Let's face it, our answers to this question are usually a bit blasé.

We’ve all been there. The moment we’re face to face with a stranger and the ice breakers begin rolling in. During this little tête-à-tête, one question is sure to be as inevitable as Thanos himself: “What do you do?”

Even for the most skilled small talkers among us, this is not always a particularly easy question to answer. Not without sounding overly vague, sterile, or, yes, even dull. But as CNBC contributor and author Jessica Chen will tell you, there is a tried-and-true method that not only provides an answer for the “What do you do?” question but inspires authentic connection with others.

Her formula, which is included in her book Smart, Not Loud: How to Get Noticed at Work for All the Right Reasons, is pretty simple and definitely gives you more to work with than just saying your job title, which, barring any astronauts or Grammy award winners reading this, can sound pretty bland for most of us.


Hex Astronaut GIFfrom Hex GIFs

Without further ado, here are the 3 points to hit in your answer, according to Chen.

1. Talk about the issues you solve

This can help paint the picture that anyone can relate to, even if they have zero familiarity with your industry. Chen advises putting this in the form of a rhetorical question.

Examples:

  • “You know how cyberattacks are getting more frequent and sophisticated?”
  • “You know how you see ads when you scroll through a news story?”

2. Share the solutions you offer

Now’s your chance to clearly explain how your work addresses the issue you set up in step one. Chen notes that it’s important to think about “real-life implications" of what you do every day:

Examples:

  • “What I do is create software systems that alert companies when a suspicious user tries to access their platform.”
  • “What I do is research the best places to put ads so that they have maximum visibility.”

3. Drop some proof

This is where you tie it all together, using a story or other pertinent company details, in order to solidify your credibility.

  • “In fact, our organization is one of the largest cybersecurity companies in the world with clients like [well-known company].”
  • “In fact, the click-through rate of our ads is around 3%, which is much higher than the industry average.”

Put all those together and you’ve got: “You know how [talk about issues you solve]? So what I do is [share the solutions you offer]. In fact, [drop some proof].” Badda bing, badda boom, a concise, yet well-thought out and impactful answer that actually provides a snapshot of what you do for a living. Side effects might include nods of interest and response in the form of, “Wow, cool!”


Oh Wow You Dont Say GIFfrom Oh Wow GIFs

If you’re struggling with all things small talk, having a go-to approach, much like this one, isn’t a bad idea. Having things like the FORD method, which is essentially a list of ice breaker questions that will get virtually anyone talking, in the back pocket can really help offset any social jitters that get in the way in the heat of the moment.

Basically, it’s totally okay if you don’t naturally have the gift of gab. But since you will likely have to engage in conversations throughout a good chunk of your life, it might behoove you to find ways to make it less stressful. And even for those of us who are extroverted and can chat with anyone, there are ways in which we can make our communication more impactful.

From Your Site Articles
mental health
Education

8 classes that should be required for all students before they hit adulthood

If we want to prepare kids for adult life, we've got some glaring gaps to fill.

Photo by Sam Balye on Unsplash

Why aren't we teaching students the things they really need to know as adults?

I remember sitting in advanced algebra and trigonometry class in high school wondering if I was really ever going to use any of what I was learning. Math at that level meant nothing to me in a practical sense. I planned to study English and education to become an English teacher, so I couldn't imagine why I'd need to learn the ins and outs of trig.

As it turned out, some of what I learned came in handy in the functions class I was required to take to fulfill my math requirement in college. But again, I found myself sitting in class with zero idea of why I was learning this level of math and suspecting that I was never going to actually use that knowledge in my adult life.

Now I'm a middle-aged adult and I can say with absolute certainty that I was right. In 27 years, I have not used anything I learned in functions. Not once. Not even a little bit. I agonized my way through that class to eek out a B-minus and to promptly forget everything I'd learned because it was utterly useless to me.

To be clear, higher math isn't useless—it's amazing. It was just completely useless to me.

You know what would have been useful? Learning about financing a car or a mortgage or understanding how and why and where to invest money. In all that time I was doing trigonometric proofs and calculating polynomial functions, I could have been learning all the various real-life math-related decisions I'd have to make as an adult.

I see the same thing happening with my kids in high school and college. It totally makes sense for students who are interested in going into math and science fields to take math beyond basic algebra and geometry, but for those who aren't—why bother? There are so many more valuable things for them to take the time to learn—things that every single person really needs a basic knowledge of, such as:

Basic Psychology/Mental Health Maintenance

Every one of us has a brain and mental health is an issue for a huge percentage of people. According to the World Health Organization, 1 in 4 people globally will be affected by a mental health disorder at some point in their lives. Even those of us who don't struggle with mental illness benefit from learning about how our minds work, gaining strategies for managing our thoughts, emotions and behaviors, and understanding why people do the things they do.

How many people would have been saved by learning how to spot a narcissist before getting into a relationship with one? How many people could mitigate an anxiety spiral right when it starts because they learned to recognize the signs earlier? How many people would appreciate the support and understanding of everyone having a basic understanding of their mental health disorders?

Basic Sociology/Human Behavior

Similarly, every one of us lives in a society. Understanding social connections, relationships, and group behavior might just come in handy. If we don't understand the causes and consequences of human behavior, we're going to be confused by society at best and allow or enable atrocities to occur at worst.

From learning how cults and conspiracy theories work to recognizing how our prejudices can blind us to reality, sociology has useful knowledge we all need to internalize.

Media Literacy

If we're going to be bombarded with media 24/7, we'd better know how to process it. Understanding how journalism works, what makes a source credible, how information can be skewed and how to recognize misinformation and disinformation is vital. What is bias and how can it be mitigated? How can we recognize when an outlet values accuracy?

So many of the problems the U.S. is facing currently are due to people watching or listening to dubious news sources. Mandatory media literacy courses would (hopefully) go a long way toward changing that.

The Stock Market and Other Investments

I underestimated how much I'd need to know about the stock market when I was younger. None of that economic stuff interested me, but I wish I understood it better now.

But really, it's investing in general that we need to understand more about when we're younger, especially since starting young is the No. 1 best advice any financial advisor will give you.

How Banking, Credit, and Credit Cards Work

Every single one of us uses a bank or credit union and credit is a huge part of adult life. And yet, most people I know have had to piece together how credit and credit cards actually work through advice from friends and family and good old trial and error, sometimes with devastating consequences.

Taxes

Good gracious, right? Not just how to do taxes, but what taxes get used for.

Financial literacy is what I'm saying. We need mandatory financial literacy classes. (In 2022, Florida became the first state to require personal finance education to graduate, so yay Florida.) I think I was required to take economics in high school, but it was much more high-level economic theory than personal finance. We need personal finance first, then the bigger picture.

First Aid/Safety/Self-Defense

Most of us probably got some first aid and/or CPR training in health class, but how comprehensive was it? Did it include infant CPR? Do we know how to recognize if someone is having a stroke? Signs of infection?

What about basic everyday safety, like why you shouldn't leave a car running in a garage or common household fire dangers or how to spot asbestos?

Self-defense seems like a no-brainer. Basically, a "How to Stay Alive and Keep Others Alive" course that includes most everything you need to know to protect yourself and your loved ones on a daily basis.

Navigating our Healthcare and Health Insurance System

Ugh. I've been an adult for almost three decades and everything about our healthcare system confuses and frustrates me. Maybe if we required schools to teach young people how it works, it would shine a big spotlight on how ridiculously and unnecessarily complicated it is because no one could possibly explain it in a way that's understandable. Maybe that would push lawmakers to actually do something about it, because honestly, it's just a gigantic mess.

There are surely others, but those are the major subjects that come to mind as vital after being an adult for a long while and seeing what my own kids need to have a decent grasp on as they make their way into the world. And honestly, there are some classes that adults should be required to take well into adulthood. Parenting classes, for example. Or local government and voting.

All subjects and courses have value to some people, but if we want students to be prepared for adulthood, we should make sure they are given the vital knowledge and skills every person actually needs and will use.


This article originally appeared three years ago.

From Your Site Articles
life skills
Education

The effortless trick neuroscientists say will help you pick up any new skill a lot faster

It's a passive hack that works wonders.

via Andrea Piacquadio/Pexels

A woman learning how to play guitar

Learning a new skill, such as playing an instrument, gardening or picking up a new language, takes a lot of time and practice, whether that means scale training, learning about native plants or using flashcards to memorize new words.

To improve through practice, you have to perform the task repeatedly while also receiving feedback so you know whether you’re doing it correctly or not. Is my pitch correct? Did my geraniums bloom? Is my pronunciation understandable?

However, a new study by researchers at the Institute of Neuroscience at the University of Oregon shows that you can speed up the processes by adding a third element to practice and feedback: passive exposure. The good news is that passive exposure requires minimal effort and is enjoyable.

"Active learning of a... task requires both expending effort to perform the task and having access to feedback about task performance," the study authors explained. "Passive exposure to sensory stimuli, on the other hand, is relatively effortless and does not require feedback about performance."

listening to music, learning a skill, woman in bedA woman listening to music in bedvia Andrea Piacquadio/Pexels

So, if you’re learning to play the blues on guitar, listen to plenty of Howlin’ Wolf or Robert Johnson throughout the day. If you’re learning to cook, keep the Food Network on TV all day to absorb some great culinary advice. Learning to garden? Take the time to notice the flora and fauna in your neighborhood or make frequent trips to your local botanical garden.

If you’re learning a new language, watch plenty of TV and films in the tongue you are learning.

The scientists add that auditory learning is especially helpful, so listen to plenty of audiobooks or podcasts on the subject you’re learning about.

Researchers learned the tremendous benefits of passive exposure after conducting a study with a group of mice. They trained them to find water, using various sounds to give either positive or negative feedback, like playing a game of “hot or cold.” Some mice were passively exposed to these sounds when they weren't looking for water. Those who experienced this additional passive exposure and their active training learned to find the water reward faster.

gardening, learning a skill, nueroscienceA woman reading a book about house plants.via cottonbro studio/Pexels

“Our results suggest that, in mice and in humans, a given performance threshold can be achieved with relatively less effort by combining low-effort passive exposure with active training,” James Murray, a neuroscientist who led the study, told University of Oregon News. “This insight could be helpful for humans learning an instrument or a second language, though more work will be needed to better understand how this applies to more complex tasks and how to optimize training schedules that combine passive exposure with active training.”

The great news about the story is that in addition to giving people a new way to approach learning, it’s an excuse for us to enjoy the things we love even more. If you enjoy listening to blues music so much that you decided to learn for yourself, it’s another reason to make it an even more significant part of your life.


This article originally appeared last year.

From Your Site Articles
learning
Trending Stories