In the strictest sense of "paycheck to paycheck," I agree, but I wasn't surprised by this statistic:It was just said on the news that about 60% of all Americans now live paycheck to paycheck. That seems high to me. If it is true, thats depressing.
Well, another thing to consider is that it says "net worth". Im pretty sure that includes your home too and other valuable assets. Im 52, so according to this my net worth would be around $90,000. That means that most people my age dont have much equity in a home at all.In the strictest sense of "paycheck to paycheck," I agree, but I wasn't surprised by this statistic:
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This is some abysmal saving. And except for the lowest income earners, it's not what you make: it's what you spend relative to what you make. Who will be richer in 20 years: a guy making $50k/year and saving 10% or a guy making $100k/year and spending $100k/year (if not spending MORE than that by going deeper into debt each year).
You're right. Years ago I was in a bank and there was a poster of a Hawaiian scene. The advertisement? FOR A HOME EQUITY LOAN!!! I'm sorry, but if you have to borrow against your house to go on vacation, you're "retirement" is going to suck.Well, another thing to consider is that it says "net worth". Im pretty sure that includes your home too and other valuable assets. Im 52, so according to this my net worth would be around $90,000. That means that most people my age dont have much equity in a home at all.
Man, thats terrible. Id cringe if I saw that. Some folks do it I suppose. Only way I would do it was if I was single and only had a year or so to live. No dependents.You're right. Years ago I was in a bank and there was a poster of a Hawaiian scene. The advertisement? FOR A HOME EQUITY LOAN!!! I'm sorry, but if you have to borrow against your house to go on vacation, you're "retirement" is going to suck.
"May the last check bounce"Man, thats terrible. Id cringe if I saw that. Some folks do it I suppose. Only way I would do it was if I was single and only had a year or so to live. No dependents.
Well, another thing to consider is that it says "net worth". Im pretty sure that includes your home too and other valuable assets. Im 52, so according to this my net worth would be around $90,000. That means that most people my age dont have much equity in a home at all.
Watch the wolf of wall streetReally appreciate everything single reply. Thank you. Now I know a starting point. Any books you trust anc recommend, even just to get me familiar? Thank you again.
Yes, ive seen the stats on credit cards. With inflation at a 40 year high now I am afraid credit card debt is probably higher than ever. I got in a pretty good habit because my first credit card was back around 1989 or so, and it was an American Express. Back then their policy was that you pay off your debt each month and not carry a balance, so thats what I did. Later on I had another card where I did carry some debt, but it never got high. I still feel foolish now for paying interest on that. We just paid off our only car loan, it was only for about 2 years. We just have to finish paying off the house now. Hoping too much crap on our house doesnt need replacing. My plan was to sell it before we have to get a new roof and heater. We built it back in 08, so its about 14 years old now. These new roofs are junk. They are supposed to be 30 year shingles, but most of our neighbor's roofs only lasted half that at most.Banks and lending companies encourage home equity loans and the majority of home owners are taking out all the equity in their homes. I read the other day that the American's average credit card debit is $8,000... that's per card!!! Their saying that the average American have 4 credit cards which would be $32,000 of credit card debit.
Banks and lending companies encourage home equity loans and the majority of home owners are taking out all the equity in their homes. I read the other day that the American's average credit card debit is $8,000... that's per card!!! Their saying that the average American have 4 credit cards which would be $32,000 of credit card debit.
The problem with most folks is that if the get a home equity loan and pay off their credit cards, they end up just building up even more debt on the cards again. In the end they have even more debt. Now they have credit card debt and a heloc.This isn't necessarily bad if you understand interest rates and debt ratios. For example, if you can get a HELOC for 5% and use it to pay off your credit card debt thats probably at 25-30% interest, you are saving a ton. Also, if you are an investor and have a reasonable conservative investment that will get you 7-10% per year, by all means you take the 5% heloc loan and invest it, especially when the market is pulled back.
You are correct about the heloc turning into more debt for people. But that's not a heloc problem, thats just a personal finance problem.Our mortgage rate is 2.85%, and we will pay it off early.
I don't like being in any kind of debt,especially when retirement is only a little over 10 years away. We don't really need the loan.You are correct about the heloc turning into more debt for people. But that's not a heloc problem, thats just a personal finance problem.
As for your 2.85% financing, why would you want to pay that off early? You EASILY can make double that interest rate in an I-bond ETF, and probably almost 4x that investing into a SP500 fund. Everyone's financial situation is different, but paying off low interest debt early is usually a common mistake.
Really appreciate everything single reply. Thank you. Now I know a starting point. Any books you trust anc recommend, even just to get me familiar? Thank you again.