Tic toc, tic toc, it’s time for TikTok again. One of our favorite things to do when there is a little bit of downtime at TARTLE HQ is to go through comments on our TikTok videos and interact a bit with our audience. This is our fourth go around with our TikTokers so let’s jump into it.
Debt was a big topic of conversation this time around, with some calling for regulations on the amount of debt one should be allowed to take on, some taking issue with our stance against mortgages, and some pointing out that debt is actually a pretty important tool for business.
First, let’s be clear, debt in general is not good. Anytime you owe money to someone else, they have something they can hold over you. When you have a debt you have to pay, that means you are tied into making enough money to ensure you can pay it. That’s true whether you have $4000 in credit card debt, a $400,000 mortgage, or a $4,000,000 loan to start a business. It’s just a good recommendation for people and businesses to have as little debt as possible. That applies to countries as well but that’s a whole other ball of wax.
As for regulations on the amount of debt you can have, that would be a huge knot of legislation. Different people can afford different levels of debt, and as someone pointed out debt is actually a tool used in business. Whether that’s good or not is, once again, another conversation entirely. Not to mention, too tight a regulation would get in the way of the person who has a great idea to get a new business started and just needs a start-up load to get it off the ground.
Mortgages are a bit different. Renting lets you be flexible, but owning a home is still preferable for a lot of people who want their space for their projects or those with families. Again, just don’t take on more than you can handle. It’s undeniable that a lot of people take on far more house debt than they can really manage. The powers that be suggest up to 25% of your monthly income for a house payment. That’s nuts. One, that doesn’t necessarily take into account property tax, two, that’s just too much of your income when there are still other bills and emergencies. Aim for a lot lower and get that thing paid off as quickly as possible. Then, in addition to all the benefits of owning a home, you get most of the benefits of renting since you can sell for a lot less if you need to pull up stakes quickly.
The point is, don’t take on debt unless you need to. Definitely don’t do it just so you can have stuff that you don’t need. Are you taking out a loan for a $50,000 car when you could pay $8000 in cash for a used one that will do the job just as well? If the answer is yes, definitely reconsider.
Enough on that. Another commented on automation being big in the future, especially in farming. Soon, the tractor will be going around the field on its own, harvesting crops without needing a bathroom break. We’re actually closer to that than many think. We already have Teslas with autopilot and other automated cars are well into the testing phase. Automated farm equipment is not a huge leap from there.
Going back to money related issues, plenty of you commented on the scam known as the credit system. Could not agree more. It is something designed to incentivize consumerism and debt. It hurts individuals, families, society, and the planet. If you have a card – and you practically need one these days – pay it off every month. Trust us, it’s a lot better.
That will wrap things up for this visit to TikTok. Keep the comments and questions coming and we’ll be back soon.
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