Living in a Cause and Effect World

Living in a Cause and Effect World

February 22, 2016 

Just like what the title says, we are Living in a Cause and Effect World. Most of us don’t give it a second thought, but everything we do or don’t do in life have consequences. Sometimes we don’t see what those consequences are for many years, but they’re there. And when it comes to our finances, it’s no different. In this week’s blog, we will go over some facts when it comes to our finances. It is my hope that just seeing these facts, will make you take a second look at what you’re doing with your finances and give you a direction in which to make any changes you feel need to be changed.

Financial Facts

The average household income in the U.S. is $50,000 per year. That means in a ten year period, that same average household will have made $500,000.

The average new car payment is $482 per month and $437 for a used car. If you were to invest those monthly payments from 16 – 65 years old, you would have between $13 to $14 million in an investment.

75% of the Forbes 400 (the 400 wealthiest people in the U.S.) say the best way to build wealth is to get out and stay out of debt.

The number one reason for college students dropping out of college is because of their overwhelming debt. Most of them having student loan debt to pay without a degree.

The number one reason people file for bankruptcy here in the U.S. is because of medical debt. Credit cards are number two.

As of May 2015; the average credit card debt is $15,609. Mortgage debt is $156,706. Student loan debt is $32,956.

45% of credit cards holders here in the U.S. make only minimum payments.

The formula used to create your credit (FICO) score has nothing to do with you winning financially. It does however have everything to do with your debt payment history, your debt levels, length of time you’ve been in debt, what kind of debt you have, and what kind of new debt you have.

This list can go on and on…

Conclusion

Folks, I hope you can see a continual theme here. Debt is nothing more than a thief that steals your future. It takes your hard earned money away from you so you can’t invest for retirement or even your kids’ college fund. The bad thing is, most people whole heartedly believe that they need some sort of debt in order to get the things they need or want and that’s just NOT TRUE!

So let me ask you, has this week’s blog opened your eyes just a little bit? Was it enough to make you think you need some changes in your financial life? I hope so. If you need some help dealing with your finances or just want a financial check up, give us a call at 616.454.2046 or email us at bunncapitalchoice@gmail.com

Comments

It was brought to my attention that people were wanting to make comments to blogs that are being posted, but had to jump through all kind of hoops to do it. I think I solved that problem. So please let me know if that is fixed. Thank you!