With the current state of economy – not only in the US, but also in other countries – the average families are left in bad financial situations and force them to go frugal. How bad is it in the US?
In the US, the average American families are in dire danger – they have limited savings in such a way that there will be no room for error. Alas, things happen, and the bad economy amplifies the effects.
Check out this infographics from VisualEconomics.com on the American Family’s financial turmoil.
The big picture of average American family:
- As you can see, the average American family only has $3,800 in the bank. Even worse, 25% don’t even have any savings whatsoever.
- 50% American households don’t have any form of retirement account.
- The house is worth $160,000 on average, but the family owes $95,000 on it to the bank (household debt: $117,951.)
- They make $43,000 annually, but can’t seem to be able to manage to pay off a $2,200 credit card balance.
- 40% Americans in the workforces don’t save for retirement.
- And here’s the highlight of all: Less than 40% of American adults have an emergency fund as a safety net against financial disaster.
Pretty bleak picture, but that’s the reality.
How to get out of the lingering problems?
If you are one of the average American, or in similar situation in wherever you live right now, there is still hope – and the hope should NOT be put on the Government.
Take action – stop depending on the Authority and start controlling your financial future. Let the Government do their own thing, and you do your own thing. This way, everybody does his/her own role in improving the personal finance, and eventually the nation’s economy.
The best tip I can give is for you to increase your financial IQ. You don’t need to go to college for this; just read financial publications, even if it’s a back issue sold before or even thrown away by others. Also learn to use the Internet, as knowledge is at your finger tips – search for ways to be better financially and you’ll be presented a wealth of information – mostly available for free. Find mentors – don’t you know that there are people ready to help you out without asking for something in return?
Learn, learn, learn – there’s no such thing as, “well, finance is not my thing, and getting rich is only a dream.” Well, keep on dreaming, and finance is actually not as difficult as you might think.
I heard stories of people having problems in school (being dyslexic, for example) succeed in their financial life because of they learn from others. Copy from them – personal finance is not a rocket science.