Reason & Realty

The United States is now burdened by the most debt of any nation in the history of human civilization. USA total debt, including, personal indebtedness, real estate debt, consumer debt, credit card debt and government obligations amount to a mind numbing 47.9 Trillion Dollars. A collective debt that continues to raise by billions every day.

In short America is in deep financial trouble. Why? For the same reason so many of our citizens, young and old, find themselves on the financial edge ... failure to live not just within our means, but prudently beneath our means. Failure to do so, be it as a nation or household, has enormous downside consequences.

                                                                                           Roger L. Caron

 Wealth & Water

 

 

A reservoir will only fill when there is more water flowing in than flowing out ... Well what on earth does this have to do with money management, and the answer is everything. In like manner when payday rolls around, dollars flow in and dollars flow out. It's the same principle in a different suit of clothes.

The analogy begs an important question ... Where are  you  in regards to managing your financial reservoir? Many believe that if they just had more income their money woes would end. When in truth people go bust everyday at income levels both high and low.

                                                                                          Roger L. Caron

Golden Years … Maybe Not

The average senior citizen has a very small retirement income. In fact the median income for those age 65 and up is only $2000 a month, according to the Social Security Administration, with the most common retirement income level being between $15,000 and $20,000 annually. While Social Security is an important retirement benefit, with upwards of 90 percent of folks age 65 and older drawing benefits. However the amounts received are at best minimal when one considers today's ever escalating cost of living.

                                                                                             Roger L. Caron

Alarming Numbers

This just in from the Consumer Federation ... two in five American households have no savings, emergency fund or retirement account. Additional data compiled by the banking industry indicates one half of U.S. households have insufficient funds to cover three months of living expenses. With only a third of households saying they feel comfortable about their current financial situation.

                                                                                    Roger L. Caron

Food for thought

According to recent estimates, there are approximately 58 million American workers between the ages of 50 and 64. The median retirement savings for this group is only $26,000. To give you an idea of how miniscule $26,000 will be when combined with Social Security benefits, nearly half of these middle-class workers could well be living on a food budget of $5 per day.

                                                                                         Roger L. Caron

Plan & Prosper

Only one third of Americans have a financial plan, whether of their own making or with the assistance of a financial adviser. More shocking is that 38% of Americans workers now live paycheck to paycheck. And fully half, have little or no money saved for their retirement years.

To succeed financially requires serious thought about money matters, regrettably many Americans prefer not to think about the future until it arrives.

                                                                                Roger L. Caron

Money Mentor

Finding a knowlegable Money Mentor can be a big challange, as the topic is both personal and sensitive. In fact most folks are more apt to be forth coming about their sex lives than there financial circumstance. Conversely people who excel in money matters are not as easy to identify as one might expect.

Those who make a big show of affluence through possessions are often those who pursue the perception of wealth, rather then the pursuit of actual wealth. A point well documented by author Thomas J. Stanley in The Millionaire Next Door. A great book as it both enlightens the reader and provides insight on what a good money mentor might look like.

                                               Roger L. Caron

 

Trash vs Treasure

In our consumptive oriented society it is not uncommon for  people to toss out unwanted goods when they are no longer of personal  use. In doing so they just might be missing out on a valuable tax deduction. Local charities are happy to take such donations, which in many cases could be used to reduce their taxable income. There is truth to the adage ... one person's trash can be another person's treasure.

                                                         
                                                           Roger L. Caron

 

Credit & Debt

Credit can be an effective financial management tool, however absent prudence it can lead to economic bondage, both on an individual level and as a nation. Within a matter of decades America has moved from being World Creditor to World Debtor. Living beyond our means, be it on a personal level or as a nation, should be cause for serious concern. Because when expenses exceed income, it is only a matter of time before overhead leads to downfall.

                                             Roger L. Caron

          7 Keys to a More Prosperous Future

1. Live beneath your financial means regardless of source or size.
2. Avoid non productive debt as though it were the plague.
3. Put your surplus resources to work through prudent investment.
4. Allow your investment returns to compound and grow over time.
5. Expend your labors in ways that generate on going returns.
6. Financial security trumps the appearance of high social status.
7. The outcomes of your future are determined by present decisions.

                                                          Roger L. Caron