Thought of the Day: May 2, 2018 – Financial Problems
What is your financial situation and are could you handle another recession?
On the news they tell us that the economy is improving. Sure it might be but look at your own situation. What does it look like for you?
If you get up and do the same thing every day then wonder why your financial picture is not changing, you may need to change something. You work hard and smart to make money so your picture should look better, right?
Money! If you have it or if you don’t, one thing is for certain in this world we need it to survive especially. The first two levels of Maslow’s hierarchy state that we need food/water followed by security.
Well money buys both.
Why else do you go to work every single day?
Yes, I agree you are looking to provide for your family and future generations. We all want nice things and want to create a second to none lifestyle.
But why aren’t we?
I believe many of us don’t understand money and can’t see we are being taxed to death by the same government we insist on trusting.
Look back to when you were first introduced to money.
As kids our parents give us money to buys things. They let us have their change. We might get a dollar under the pillow for losing a tooth. We save nickels and dimes in our piggy bank and one day we will have enough money to buy our first bike, toy or game.
As you grew up you watched your parents make good and bad decisions with money.
When you got to the age of 18, you were introduced to your first Credit Card. Buy now, pay later. But if you choose to pay later the interest is between 0% to over 20%. Credit card companies are happy with you making your minimum monthly payments.
An item that is $100 today can cost you much more if you don’t pay off your credit card.
Stats show most people do not make a lot of money after their higher education. The more education, the more debt. By the time most students have a diploma or degree they borrow between $50 and $150k+ depending on the career they chose.
As for your that student loans you don’t have to star to pay them for a few months after you leave college or university.Good thing is you can take that $50-150k piece of paper and hang it on your parents wall. Now that’s one expensive piece of art work! Click To Tweet
After your schooling, you look at buying a home. You don’ have the money, so you need a mortgage. A mortgage is just more credit being extended to you.
You purchase your first home ranging from $150k to $600k+. You can take a small loan at around 3% these days. (2018) When your done paying the loan you have paid close to double the original amount
You better hope the value of your home has double in the 25 year period just to breakeven. And don’t forget you just paid interest on money that does not exist!
Now that you have a home, you probably also met your spouse, you got married. How did you pay for that lavish wedding? Most people used CREDIT!
Some of you may have a few children and we it’s not cheap. Don’t believe me? Ask your parents!
Are you spending more than you make? Or are you doing well, with no debt and financial problems?
Whatever your answer, take control of your financial situation by understanding money. Focus on eliminating bad debt from your life and concentration on building long-term wealth.
Founder and CEO, Discover Your Life Today
Maveen has built his career in Banking, Insurance, Home and Automobile Sales. Providing exceptional customer service is his passion. Writing is a way to share his knowledge and help change the lives of million of people. Like the Facebook Page to support him.