by OldGuy » 26 Nov 2024, 14:20
Apparently, most people do not know how to handle their own finances. A topic that should be taught in high school is completely ignored by the education system. People reach adulthood with no idea how to handle their own money and overspend right from their first paycheck.
According to posted data, 78% of all Americans are living “paycheck to paycheck”. In other words, they run out of money before the next paycheck arrives and experience the month end blues as a regular part of life. Any emergency or a missed paycheck would mean they could not even cover basic living expenses. Savings and investments are nearly impossible. It should be no wonder that so many are downright hostile.
Obviously, the first step is to get educated about how to handle your finances. Learn how to budget. Cut the extras so you can live within your means. Do you really need that 20th pair of shoes? Is it really worth paying $25 to have dinner delivered to your door when you can go get it yourself and pay less than $10? Learn how to cook at home and save half of what you spend at a restaurant. That kind of stuff is blowing your budget.
Americans are so deep in debt they just can't pay it off. A big part of that problem is credit card debt.
Quoted: “Americans owe $986 billion on credit cards, surpassing the pre-pandemic high of $927 billion. We owe $11.92 trillion on mortgages, $1.55 trillion on vehicle loans and $1.60 trillion for student loans.” (As of 2022; it has grown by billions since)
I suppose the only “good news” is that you are not alone in your misery.
On the other hand, I seem to be very alone but I am proof it can be done. Learn what it really means to be “frugal”. I live on about $5000 a year less than what the US Federal Government calls the poverty level which means I don't earn enough to bother with an annual income tax return. I do not have anything that even resembles “month end blues”. I have never experienced any late payments, never had any bounced checks, never hear from debt collectors, in fact have no debt at all. I've never even had a credit card, have no idea what my “credit score” is and don't care. I always pay cash for everything. If I encounter some major emergency, I have set aside more than enough to cover it without concern. I don't even need a life insurance policy. All my crating, shipping and my final hole in the ground are all covered by my investments with enough left over for my heirs to go out and party at my final farewell with some left over.
Point is, you can learn how to cut your expenses. Take some classes if you need to. Create a budget plan that will leave part of your income untouched. Get to the point it is easy to live within your means and cut the excess. The end of the month financial blues will evaporate if you work on it.
references:
Majority of Americans Live Paycheck To Paycheck – Forbes Advisor
https://www.forbes.com/advisor/banking/ ... tics-2024/Demographics of Debt
https://www.debt.org/faqs/americans-in- ... ographics/Apparently, most people do not know how to handle their own finances. A topic that should be taught in high school is completely ignored by the education system. People reach adulthood with no idea how to handle their own money and overspend right from their first paycheck.
According to posted data, 78% of all Americans are living “paycheck to paycheck”. In other words, they run out of money before the next paycheck arrives and experience the month end blues as a regular part of life. Any emergency or a missed paycheck would mean they could not even cover basic living expenses. Savings and investments are nearly impossible. It should be no wonder that so many are downright hostile.
Obviously, the first step is to get educated about how to handle your finances. Learn how to budget. Cut the extras so you can live within your means. Do you really need that 20th pair of shoes? Is it really worth paying $25 to have dinner delivered to your door when you can go get it yourself and pay less than $10? Learn how to cook at home and save half of what you spend at a restaurant. That kind of stuff is blowing your budget.
Americans are so deep in debt they just can't pay it off. A big part of that problem is credit card debt.
Quoted: “Americans owe $986 billion on credit cards, surpassing the pre-pandemic high of $927 billion. We owe $11.92 trillion on mortgages, $1.55 trillion on vehicle loans and $1.60 trillion for student loans.” (As of 2022; it has grown by billions since)
I suppose the only “good news” is that you are not alone in your misery.
On the other hand, I seem to be very alone but I am proof it can be done. Learn what it really means to be “frugal”. I live on about $5000 a year less than what the US Federal Government calls the poverty level which means I don't earn enough to bother with an annual income tax return. I do not have anything that even resembles “month end blues”. I have never experienced any late payments, never had any bounced checks, never hear from debt collectors, in fact have no debt at all. I've never even had a credit card, have no idea what my “credit score” is and don't care. I always pay cash for everything. If I encounter some major emergency, I have set aside more than enough to cover it without concern. I don't even need a life insurance policy. All my crating, shipping and my final hole in the ground are all covered by my investments with enough left over for my heirs to go out and party at my final farewell with some left over.
Point is, you can learn how to cut your expenses. Take some classes if you need to. Create a budget plan that will leave part of your income untouched. Get to the point it is easy to live within your means and cut the excess. The end of the month financial blues will evaporate if you work on it.
references:
Majority of Americans Live Paycheck To Paycheck – Forbes Advisor
https://www.forbes.com/advisor/banking/living-paycheck-to-paycheck-statistics-2024/
Demographics of Debt
https://www.debt.org/faqs/americans-in-debt/demographics/
