Running our homes like the federal deficit?
If you had to guess, how much would you say the average working American makes during his/her lifetime?
The answer is about 2 million bucks. That’s about 50k per year, for 40 years! 2 million dollars, not counting taxes….Now, for the million dollar question. What is the average person’s net worth when they hit retirement? $66,000-88,000 depending on the source you use. So let’s do some quick math 66,000 divided by 40 years is about 1,650 per year (or 138.00 per month) saved, that includes growth on that money (assuming there is some growth). Most Americans cannot survive on $138.00 a month.
It’s long been a principle of wealth that if you want to become financially secure you need to be saving 10 percent of your income. So what most Americans have here is a MASSIVE savings deficit. Instead of the recommended 10% we’re scraping along at about 1-3%…meanwhile paying a large chunk of our monthly income to debt and interest payments. Car payments, mortgages, credit cards, home equity loans, etc…Why is something so simple as saving just 10% so difficult for us to do?
It’s not so much a factor of us not knowing what to do, but rather a factor of us not having the right TOOLS to do it correctly. For example, we’ve all saved some money before…and what happens to it? We are saving just to spend it on something else down the road. We’re saving to spend, not saving to save.
Studies of finances have shown that most of us end up spending the money because it’s too accessible, to easy to access. We all know the phrase “Money burns a hole in your pocket” it’s easy to spend what we have in our pocket, easy to spend what we have in our bank account…but if it’s not there, it’s not so easy to spend if it’s not readily accessible.
That’s why putting it away…into a place where it’s not easily spent can be the best and smartest way to save. That’s where a 101 Plan can serve you. It does allow access to your funds, but it’s not burning a hole in your pocket every time you login to your bank account.
If you would like to know more information about the 101 plan please give me a call at 323-750-5441 Ext 86 or log in at…Safe Money Millionaire today!
