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.

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Rich Uncle EL

Can People Avoid Disrespecting Money

Can People Avoid Disrespecting Money
How many singles can you count?

Hey it’s that time again to discuss all the great and fun things about money. For starters never love or obsess about money, but love the freedom and usability money can bring. How can people avoid disrespecting money? Well it’s quite simple and it is basic personal finance mumbo jumbo we have all heard in the past.

I will dig into this topic and reveal all the ways regular folks are disrespecting money everyday. Do you want the best use of in-flow and out-flow for all your income? Well if the answer is yes then you can continue reading because I will instill a few nuggets of wisdom in this blog for all of you. Disrespecting money can happen in many fashions and it is up to you to put a halt to it once and for all. This is not a post about the irresponsible football player who goes bankrupt or about someone making over 200K and still living paycheck to paycheck. It is about simple ways anyone can stop disrespecting money and begin using it for the tool that it really is.

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Making Side Money

 

Making Side Money
Ben Franklin knew how to make Side Money!

Did you know that making side money can help you achieve money goals faster? I believe anybody can do it on a part time basis. Do you have some debt that you detest? Do you want to save up for a home down payment? Do you want to finally establish a business? The side money you can possibly make will help you attain the things you want if your cash flow is not sufficient enough. What are some of the things you can do to build up the savings? Well jobs are available if you are willing to serve others.

I know some of you are already fed up with working 40 hours a week and cannot even think it will be possible to fit in another 15-20 hours for a side money work. But I have done it in the past and I do not mind doing it again in the future. I try to find jobs that fit in with my personality and schedule. The pay does not have to be substantial, but it definitely is a factor that you must predetermine before you begin applying and accepting offers. I will offer you a few examples further in the post as to give you some ideas how to make side money. These side jobs should only be considered if you do not have over time opportunities in your day job or if you desire to do something different.

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Is it worth it to spend 90 dollars a month for Internet

 This is what I am currently spending a month to access the internet now a days. It consists of two cell phones with data and home based internet usage. This gives me access to surf the web on my cell phones whenever I desire too, and at home on my computer. 

The question I am proposing is, is it worth it to spend 90 dollars a month for internet?

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Cash Flow

These two words have been on my mind for the last month now and the reason why its been on my mind is because I am in the process of graduating from my master’s degree program with a sizable loan on my hands, when the six month time frame is up my cash flow will take a major hit. What could I have done to avoid this dreadful scenario:

-Budgeted a bit better the last two years I attended school and paid down my loans 
-I could have applied for grants to assist with tuition expenses
-Used 100% of my Tuition Refund money to pay down loans

There you have it even me a person who is constantly thinking about finances and money, I still find myself making emotional financial mistakes that will cost me a few dollars in interest charges. So to conclude this post, use the advice I have provided you to do better for yourself and always remember to watch your money!