Member-only story
Life Hacks and Tips in the Modern World
31 Lessons You’ll Instantly be Able to Implement Into Your Life
If you can’t buy it outright, then you shouldn’t finance it. This always sounds like straightforward advice, but the numbers tell a different story. The typical American household today carries an average debt of $137,063. That number was $50,971 in 2000. The total credit card debt in America is around $1 trillion, or about $8–9,000 per household.
Find an S&P 500 tracking fund or a Russell 2000/3000 tracking fund and just keep adding your disposable income to it. A lot of people out there talk about funds and active management. Financial jargon is just that — jargon. Over half of fund managers underperform the S&P 500 index after a year. After 10 years, over 90% of the funds underperform the index.
If your monthly expenses are pushing over half of what your monthly income is, then your expenses need to come down. Bad times happen. They’re real. Here is a chart showing the change in homeowner equity over the years.
