We Earn Millions But Lose it to Debt
Did you realize that most people make over $2 million during their working lifetime? Since most people earn more than $50,000 on average according to the My Budget 360 website and work from about age 22 to age 62, that ends up being $2 million! That means we are all millionaires in the making – (before debt and taxes). But then why do so few of us ever end up with millions of dollars in the bank? I mean, we have 40 years to invest our money, so its not like we have to save half of it just to come out to $1 million.
Nothing is Certain – But Debt and Taxes
So where does it all go. Well, for most of us, 27% of our income is lost to taxes and another 20% goes to debt throughout our lifetime! That means over $400,000 is lost to debt alone for the average worker. We spend our entire working lives making the banks rich! But that still leaves us with over $1 million. And the sooner we manage our credit and eliminate our debt, the smaller the percentage we will lose to debt payments and finance charges. That leaves more money in our own pockets. Money we can use for our families, vacations, sending the kids to college and investing in our future so we can have a comfortable -> or even an awesome retirement.
Your goal then is to keep more of your money. How do you do that? Seek advice from the right types of experts – such as The Money Professors :). Don’t get your advice about money from friends who are broke. So many people I know refer to what their friends tell them makes the most sense. Then when you press a little further, you find out these friends are all in the same situation. While I understand that misery loves company, it is success that creates real relationships. You also must be aware of how those who are helping you are being compensated. Be careful when you get your advice from banks, creditors, insurance companies, etc. Many of them are paid sales commissions, which means you have to carefully consider whether their financial advice is about your wealth or theirs.
Get a Plan for Your Debt
Now that you understand your potential – (and if you read Got Debt? So Does Everyone Around You – you will also see how the wealthy view money vs. the financially disadvantaged), you can see that making a plan for your money is the best approach to doing the most with it. Think of three things you are going to do make sure you get to enjoy your money, instead of allowing circumstances to take it from you. Now write those three things down, or better yet, put them in the comments below!