A 2017 report in MarketWatch showed that half of American households are living paycheck to paycheck. This is a very sobering fact in itself, but when you add to it that 19% of households have $0 saved to cover any kind of emergency expense and 31% have less than $500 in emergency savings. 49% of Americans feel nervous or scared about their current well being.
The scary, and what we consider normal, part of this is that low income is not always the reason for this. As a matter of fact, 1 in 5, or 20%, of American households fall below the $40,000 per year income level. Many of them actually earned $100,000 or more per year.
So what causes this debt effect to happen? I believe that it is a definite result of living beyond your means. That, my friends, is not rocket science and you are probably calling me Captain Obvious at this point, but there is really nothing complicated about getting out of debt and building wealth. It is a series of little common sense steps that anyone can accomplish.
Society, financial institutions, realtor, and even your friends make you feel perfectly normal for having this pile of debt. The first step is to change yoir mindset into one where you WANT to be debt free. Something will probably happen in your life where you will just be so tired of living this way that you will become so dedicated to turning things around.
In upcoming articles, I will outline the simple steps to getting out of debt and building wealth in real life.