It was clear that when President Obama took office, he didn’t know what he was getting himself into. Do you remember the look on his face when he came out of his first briefing? His expression said something like, “Whew, that was rough. I’m in trouble here.”
The financial status of the United States is not what it used to be. The U.S. national debt is currently $13.6 trillion (13,600,000,000,000.00) and climbing, and there seems to be no way out. We currently owe China $843 billion! Yeah, that sounds smart, let’s be slaves to China… Frankly, a lot of people share my current views; the U.S. has too much debt and rather than stepping up and making a plan to pay it off (by the way, good job United Kingdom), we choose to dig ourselves deeper and deeper.
At this point, I think we can all agree that the national debt has grown unreasonably large, but let’s scale the picture down for a moment. The median income for a Florida resident is $42,468. This person most likely has a home mortgage, a car loan (or two), and some credit card debt. This can easily total to over $250,000 in debts! Well, given this example, we are following in the footsteps of our government. The U.S. federal income is just over $2 trillion a year, meaning that they are in debt more than 6 times their yearly salary, which is precisely the ratio of the individual example!
This was a big eye-opener for me; I was glad that I dug into the numbers because now I understand that rather then ganging up on the government for a few poor choices, we should first realize that many of us as individuals may need some course correction as well. Let’s pull out that plank from our own eye before making an effort to grab at the sliver in the eye of our neighbor.
I am currently digging myself out of debt, and I’m actually enjoying it. It’s fun to purchase bargains and live responsibly. My views have changed dramatically, and although it may not be the “cool way to live”, frugality certainly is freeing; this smile hardly ever leaves my face.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.