The goal of this site is to prompt you to be weird beyond belief. And by that I mean wealthy. The average American is broke. Actually, the average American is worse than broke, they’re $100,000 in debt. According to Nerdwallet, debt is on the rise again:
The average credit card debt is $6,184. On top of this, add car loans, student loans, and mortgage debt to the mix and the average debt load in America is $99,835.73.
For some of you, this might actually seem low. Your mortgage debt alone probably totals more than $100,000. And if that’s the case, you’re worse than the average.
The Average Road
At one point in my life, I was $18,000 in student loan debt, a few thousand bucks in credit card debt, and I had a mortgage of $70,000. I was pretty much average according to the charts above.
Some of you are right where I was five years ago. You realize that you’re about average and that’s okay with you. You continue to piss your money away at restaurants, festivals, and concerts each weekend and think nothing of it….because after all, you’re doing alright. No worse than anyone else.
Do you realize where this mentality leads?
Ask anyone that has gone bankrupt before and they’ll tell you. They didn’t think they were out of control. They earned a good wage, paid all their bills on time. Life was good. And then something happened that turned their lives upside down:
- Job loss
- A tragic accident
- An unexpected tax bill
Suddenly the monthly bills become impossible to pay, you get behind, and there’s no catching up.
This is what being content with average gets you. And if you don’t believe me now, then you’ll likely believe me later…after it’s too late.
How to Get Off the Average Road
Something has to move you in this life. By that I mean something has to change either externally or internally to get you doing something different.
- The first was when the student loans came due and I realized I couldn’t make the monthly payment.
- And second, when I got divorced and owed my wife half of our estate.
You don’t want to wait around until some catastrophic event moves you like I did.
Realize that you’re in a bad spot. You’re in debt and you shouldn’t be. Life would be so much better if that credit card, those student loans, those car payments weren’t weighing you down.
Hopefully this simple post hits you hard enough to take action. I hope that being average scares the crap out of you.
If you’ve been thinking about tackling your debt and becoming better than average, then I would highly recommend Dave Ramsey’s book, “The Total Money Makeover“. Dave will teach you why to get out of debt, and then how to get out of debt. It’s so powerful a read that many people don’t put it down until they reach the back cover.
It could change your life forever, and I certainly hope it does. Best of luck to you all.
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.