EL

Is Shopping Americas Biggest Addiction?

The biggest threat to anyone’s retirement is the amount of consumption happening in the daily lives of all Americans. We spend almost 90 % of discretionary income buying an immense amount of stuff we probably could live without. Is shopping Americas Biggest addiction, I believe it is and the numbers behind it easily back this up. If we look beyond the needs of the average person it goes to show that living the American dream is definitely misguided in todays society.

Overall consumption is basically hurting the planet, robbing our future, making people addicted to a so called shopping thrill, and setting up the next generation for an epic failure in the future. In contrast the government loves to report the increases in GDP which is fueled in part by our shopping and spending behaviors. The Gross Domestic Product figure in 2018 will probably be at an all time record high of 20 trillion dollars. IF I’m not mistaken that figure has doubled in the last 10 years since 2008. It is projected to reach 24 trillion by 2021. What does this say about where we are spending the good old Benjamin’s?

I have a shopping mall about 10 minutes away from me and on any given Sunday it is full by 10 am. The parking lots are overcrowded with cars by people aimlessly shopping inside the mall for unnecessary things. Its hard to fathom that everyone who is in attendance at the mall on the weekends is in search for a need. NO they are searching for wants and the list of wants gets bigger every year to coincide with the GDP growth.

Is Shopping Americas Biggest Addiction?

Gambling in the United States is a severe problem and only getting worse as in 2016 the amount of legalized gambling was 116 billion dollars as reported. Just imagine the amount of illegal gambling added to the amount above. Now contrast this with the amount people spend shopping 10 trillion dollars. Granted a vice like gambling compared to the amount spent on consumption is not a fair comparison due to the fact that not everyone gambles but everyone consumes something. Putting aside the total consumption figure and seeing the effects of hyper buying, low savings rates (5%) and the lack of recognition that an overspending problem exists is a red light on our American way of life. This is why I believe spending addiction is greater than gambling addiction. We are rolling the dice in the next few decades and things need to change for the positive.

The fact of the matter is that this spending trend cannot be sustained any longer and the first step is to admit that a majority of people have a spending addiction. If you make 50K a year, spend most of it on housing, transportation, and taxes. The last small percentages go to debt, food, and vices. The trick is that we must reverse padding the companies pockets and instead increase the personal savings rate to 15% at a minimum, once the debt is managed or eliminated.

The real cure is finding what is causing the overspending, which will help to heal the unhappiness occurring either at work or home. Once you can trace it to the root of the problem then you can come out feeling more confident with finances. When you feel the urge to shop or spend unwisely begin to do your most enjoyable hobby. For example you can read a book, walk, watch a movie, go to visit family. Join me in sharing and participating in a new challenge #Save>spend. Savings is always greater than spending.

Comment on your thoughts regarding Is shopping Americas Biggest Addiction?

Rich Uncle EL

Motivating People to Reach a Million Dollars

I listen to a podcast called the million dollar plan. It is a 1 on 1 interview style show where the host discusses the finances of a featured guest. The gist of it is to reveal when the interviewee will reach a million dollars. That million dollar day could be 4 decades in the future, but the host (Pete) discusses with them how to speed up that process and reach a million dollars sooner with several action steps. Motivating People to Reach a Million Dollars is necessary to any money coach. Because when clients succeed everyone wins.

Now with this topic about finances fresh in your mind, do you have any idea when you will reach a million dollars, or if you even have a plan to reach it? Many people in the media now days always put off a million bucks like it’s not enough. But believe me a million bucks far supersedes the investment accounts of most baby boomers. The average boomer over 60 years of age has about 2ooK in retirement accounts as advertised in the same media outlets that say a million is chump change.

Continue reading Motivating People to Reach a Million Dollars

Side Hustle During the Holidays For Extra Money

Hello readers I want to share with you a tactic you can implement this year to help you make some extra money in 2018 and beyond. These tactics can be used during the holidays only, as there is a ton of ways to make extra money. The only real way you can make this work is if you save most of your vacation days throughout the year, to be used in the last two weeks in December. The reason to do this is to make extra money, while still getting paid from your regular employer. The only difference is you will not be sitting on the couch watching TV, but you will be out there hustling to make at least 2-4 thousand dollars in 2 weeks. That’s why you should find a Side Hustle During the Holidays For Extra Money.

Depending how much energy you have you can really actually make this much extra money. The purpose for the extra money is for you to get some traction with debt, emergency fund money, avoid living paycheck to paycheck, and maybe adding some vacation fund money. The point is to, Make Money, not make it rain on Amazon wish lists. The consumption during the holidays is staggering, and guess what if you’re working you will not be consuming. I have found that I spend more on days off, than on days when I’m working. So work while still young and able, and get a head of all these crazy money goals you should complete today.

Continue reading Side Hustle During the Holidays For Extra Money

Give Back Story

What’s going on my friends today we will discuss charities and why I find it important to give back? So I usually give to charities every year because giving makes me happy and so far this year I’ve given the most ever. I hope that the amounts donated have made an impact on those organizations and the people they support. That truly is what charity should be meant for, to make a difference in the lives of others. Keep reading below to find out why my give back story changed this year for the better.

On a random weekday morning I get an email for J. Money over at Budgets are sexy and he goes on to say that he is looking for a group of 20 bloggers who will help spread joy and cheer by donating 100 dollars to cause important to them. I immediately jumped on it because it is the season of giving and since it rings true with my beliefs. I come from a middle class family and my parents encouraged giving back to those less fortunate, because it was the right way to live.

So the task began to find 3 organizations that we can help with their cause this holiday season. After thinking it over for a few days, something clicked and I thought why not support 3 organizations that are present in my life right now and that I have never been a contributor before. The 3 organizations I picked were the Les Turner ALS Foundation, The make a wish organization, and last but not least the Havasole organization. The reason why these 3 entities were chosen is because each one has a special meaning in my life right now.

Continue reading Give Back Story

How to Retire Comfortably

There is no trick involved in retiring comfortably. It’s often difficult to accept that you can obtain extraordinary results by ordinary means, but our desire to rely on a wing and a prayer can have devastating consequences on our retirement savings. Understanding the basics of your finances and investments can be as easy as reading a few finance and investment news articles on a regular basis.

The key factors to financial security in retirement are time and commitment. Here are 5 tips, which will help you pave the way to a comfortable retirement:

Always have a plan

The first step is to identify your goals. As a rule of thumb, you should aim at saving approximately 17 times your pre-retirement salary by the time you retire. This is, however, based on a certain set of assumptions: Therefore you may have to adjust your savings plan if your investment returns and spending habits deviate from the assumptions. It is important to note that the sum you are required to save to meet your goal will increase as you near retirement if you don’t start saving early enough. The earlier you start, the longer you have to benefit from compound interest.

You must account for inflation

Inflation erodes the buying power of your money; therefore your returns need to compensate for this effect. Risky, high-return investments can fluctuate wildly over the short term, but the key here is to remain calm. Instead focus on taking a long-term approach: Look at the returns over a 3 – 5 year period, since short-term fluctuations typically smooth out over time.

Continue reading How to Retire Comfortably

Finding Financial Purpose

What’s your financial purpose in life? Do you feel finances drive other areas of life? I would imagine it does because money affects life in many ways. Does the financial purpose intermingle with your life’s overall purpose? To me I believe it doesn’t, but then again it can. Purpose is defined as an outcome or idea that is the object of an action or effort. Finding financial purpose is your task by the end of reading this post because without it you will be lost in 401K Sea.

Someone’s life purpose might be to become a nurse or a lawyer, but how does that correlate to finding financial purpose. Think of it as what is the objective of your hard earned money you will earn in that profession? The activities and choices pursued today, will ultimately help you have unbelievable freedom later.

Continue reading Finding Financial Purpose

Forget the Side Hustle

What’s going on my friends? Today we have a great topic on the blog, and it is to renounce the side hustle mentality. Why would I, a personal finance junky tell you to forget the side hustle? Because 1- it is a bit overrated, and 2- because you really do not need it if you focus on the personal finance basics from an early age.

Let me explain a bit more before some of you go crazy in the comments below. The side hustle is only needed if you are in need of cash to cover you for a variety of financial stresses. Like paying off debt, saving for a down payment, or to finally build up an emergency fund. Obviously the side hustle is important if you are facing a scenario I just mentioned, but keep in mind it will take away from much needed free time.

Life is a balance and if you work 40 hours a week at the full time job and then clock in another 20 hours per week at the side hustle it will diminish all the fun things you can be doing to live life. Granted if you are a single person and have gobs of free time then by all means go at it and hustle your heart away. Keep reading below to fully understand the meaning of forget the side hustle.

Continue reading Forget the Side Hustle

Life and Goals

For me I find life rewarding when I’m constantly pursuing a goal. For this blog Let’s focus on financial goals because that’s why we are here. What Life and Goals do you want to pursue? Think about this before reading the post.

My current finances are in decent shape, so I believe it’s imperative for me to tailor my goals to how Good or bad my fiscal status is. Can they be improved, of course and this is the reason why I stay pursuing goals. How can you go about improving financially?

Income is the Key!!!

If you have a big chunk of discretionary income left over every month, I assume you can knock off bigger goals faster. The opposite scenario is if you have less funds left over, then goals like debt payoff might take a bit longer.

Continue reading Life and Goals