Are You Part of The Statistics?
If so, what are you doing about it, do you have a solution?
The hard reality of the average American family is devastating. I think at one point or another we all have been there and if you have not, are you able to prevent it? I see it and hear it every day when talking to customers, especially, the ones of retiring age. Let me share with you some of the most resounding and scary facts. I am sure you know of someone, whether a friend or a family member, that is part of these stats.
A Market Watch’s article published on May, 19 2017 states, “Nearly half don’t have the cash to pay for a $400 emergency, Fed survey finds”.
Here some key points from the article:
➜ As per Fed surveys:
➜ Most Americans don’t have the median out-of-pocket expense of $1000 for major medical expenses that may crop up.
➜ 2016 survey: Money will have to be borrowed, said 44%.
➜ 2015 survey: 46% would have to borrow money. Not much of a change from 2016.
A year before, USA TODAY on Oct. 9, 2016 also published an article that said: “Nearly 7 in 10 Americans have less than $1,000 in savings”
➜ The personal saving capabilities of Americans in July 2016 was just 5.7%.
➜ In 1967, when the unemployment rate was 3.8% and the dollar value was 6.39% higher than current levels, personal savings capabilities were double that of the current rate.
➜ Funny, the recommendation was to save between 10% and 15% of your annual income, yet current real inflation rate is 10%, thus just barely keeping up with inflation.
➜ GoBankingRates surveyed 7,052 people and encountered that, whether peoples’ income was $24,999—or even for the 29% making over $150,000 a year—no one could save $1000 a year.
It’s not surprising that on June 27, 2017, Money US published: “Half of Americans are spending their entire paycheck (or more)”
➜ The Center for Financial Services Innovation reported that almost 50% of Americans live paycheck to paycheck.
➜ Their expenses are equal or greater than their income.
➜ Most of the income is going to housing and transportation expenses.
➜ Expenses continue rising while income remains the same.
➜ A major contributor to this economic situation is variable income. 40% of earners have monthly incomes which fluctuate month to month.
To say prevent it is easier than doing when it is too late. It is about being proactive and developing a plan beforehand to prevent falling into or becoming part of such detrimental stats. You must start with the end in mind. What are you trying to accomplish? Where do you want to be financially in a pre-determined age bracket? What kind of lifestyle do you want to achieve during your golden years?
Once you are aware of your goals, develop a plan to follow. Seek information that will give you the knowledge and tools to execute your plan. Invest in yourself, polish or develop new skills to convert into assets to generate residual income or generate additional income by working smarter to invest and reinvest the profits into passive generating income assets for future enjoyment.