This is a guest post from Joseph Hogue.
As a financial advisor, I’ve seen the frustration Andrew talks about when he hears people just don’t have money to invest.
It doesn’t help that wages have barely budged over the last decade. The cost of healthcare and education are rising faster than paychecks and many families struggle to pay the bills, let alone have money left over to invest.
Andrew shared some great ideas on finding a little extra to start investing, from starting a side business to developing new skills and creating a budget.
There’s another problem though that is keeping people from the financial lives they deserve, an emergency that most families feel powerless to overcome.
The average American is drowning in debt. Like drowning, we struggle and flail about but just can’t seem to keep our head above that tsunami of bills washing over every month.
Saving your financial life means not just learning how to tread water in all that debt but how to get back to dry land. Only after getting out of the sea of debt will you have enough to invest and reach your financial goals.
How Bad is the Debt Crisis in America?
According to the Federal Reserve, total household debt in the U.S. surged to $12.84 trillion in 2017, jumping by more than half a trillion in just one year. In fact, the average American household owes more than $52,500 not including a mortgage.
It costs the average household a dollar of every $5 earned just to make these monthly debt payments. [click to continue…]