Last night as I was teaching a budgeting class, I was reminded how much your income really is your greatest wealth building tool. Did you know that the average annual income in this country is right around $50k? That means that for the average working adult making an average income over the course of a 40 year working lifetime will have about 2 million dollars pass through their hands. 2 million dollars! Imagine how much more that is when you make more. That's a lot of money to go through and have nothing but Social Security to live on. I don't know how many retired or nearly retired people I've met who look back at their financial lives with deep regret of what could have been.
If the money comes in on payday and then all goes right back out in the form of payments, will you really be able to effectively reach your goals? Even after the great financial losses of 7 years ago, today's world is still one of easy credit. Banks advertise, "If you have the dreams, We have the money!" That's the irony of it. Have you ever noticed the skyline of just about every city in America? It is dotted with big, tall buildings, even skyscrapers. In nearly every case, those skyscrapers are owned by banks. They make billions and billions of dollars annually all because we as a culture are not willing to save up to buy things ourselves. Instead we use their money and build their wealth, not our own.
So my advice today is to stop. Stop borrowing money to finance your "dreams". Stop mortgaging your future on the whims and fancies of today. There is great satisfaction and peace in saving up and paying for something with your own money. Cars drive differently. Furniture feels better. The grass truly looks greener when it doesn't have a payment attached.
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