“Experienced real estate investment and financial service professional, Carlos Aguirre, demystifies financial independence and teaches financial freedom in his new book titled “The Wealth Taboo”. Carlos Aguirre is a financial service and real estate investment professional with over two decades of …”
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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.
Some people might think, I wonder how you do it, go from… well, us, to them?” That’s the timeless puzzle, isn’t it? How do we go from scraps to riches, to attain financial freedom? Without winning the lottery, or running a Ponzi scheme, how do we get rich?
That eternal question is a case in point to the education system not covering the financial history of our society, or even how our banking system works. Accumulating wealth or becoming a self-made millionaire requires persistence, patience, focus and—most of all—a wealthy mind, a growth mindset, and a mind-shift!
Unless you understand the past, you will never write yourself a decent future. Past events, whether good or bad, leave a path, footprints that allows you to understand the reasoning of why something was created, and the needs, wants or desires that led to such creations.
When you understand the ‘why’ of something, or how something works, you can make changes or improvements to your place or role you play in the system. Otherwise, you will never make the changes necessary to write your own story, and will thus continue being part of the system of things that influence your life.
Understanding the world banking system, in order to leave you a trace or path to follow, is crucial to your wealth-building strategies, as I have stated from the beginning of this book. Most importantly, the system has proven, over time, to be successful.
Although there have been changes, such things are necessary to operate within regional socio-demographic structures. These structures, however, are influenced by cultural idiosyncrasies, due to the international expansion of banking models in the world.
Further, the need to protect consumers and banking institutions, as well as setting up international laws and rules to facilitate and support international trade across borders between nations, also requires modifying necessary laws to keep the system working.
However, the implementation of a world monetary system, as its name implies, has repercussions on nations and citizens globally. The consequences of changes in major players’ economies, like the USA and China, also influence global economies in a domino effect.
Irrespective of its flaws—and the possible collapse of the current monetary system—you are part of it. Even if changes are forthcoming (such as Cryptocurrency), such change will take time, and the implementation of a tremendous lateral transitional system to prevent global economies collapsing will be necessary.
However, successful banking methods remain in place. In the meantime, you must know, understand and be able to play the system, rather than continuing to allow the system to play you.
Although there have been changes, such things are necessary to operate within regional socio-demographic structures. These structures, however, are influenced by cultural idiosyncrasies, due to the international expansion of banking models in the world.
I believe that everything is a state of mind, a growth mindset. However, considering current socio-economic trends, the new generations are doomed if they do not understand how to work the financial and banking systems to their own advantage.
Our education system fails to teach the youths of our society practical ways to build wealth, and do not explain the processes of the banking system. Nor do they inform students of ways to prevent generations of people from falling into the banking system’s trap.
Since the beginning of time, both the concepts of love and money have been misunderstood, and for many people, they are an incomprehensive subject. Most people think that money is created or printed by their national mint or government, which is partially true. However, this is a smokescreen.
Why doesn’t the educational system explain this? School teaches you about the monetary system, about how economic scales are manipulated, and the effects it has on your pockets, but it doesn’t teach you how that money is made, or the darker side to the system.
