Houston…we have a problem!
In Friday’s Wall Street Journal, there was an article indicating that the Financial Health of Americans has improved. The article indicates in a survey that “A total of 70% of respondents said they were either “living comfortably” or “doing okay,” up from 62% when the question was first posed in 2013.” A tad further, the article goes on to say:
While most respondents overall reported their household finances modestly improved last year, 44% said they would struggle to cover a $400 expense in an emergency, according to the Fed survey. That is down from 46% in 2015.
Well isn’t that something special? In two years – things have gotten so much better that now 44% of American households can’t come up with $400 buck to cover an emergency while in 2015 46% couldn’t. I’ll be frank – this is a serious problem. If you can’t come up with $2,500 in an emergency – that’s a problem as well – but $400 – well that’s really bad. The bigger point is that this should not be the metric to measure financial health. It’s akin to defining health based on a 2% decline in the number of people that died of heart attacks. Financial health should be measured based on whether a household is on track to meet their financial retirement goal – and that goal in simple terms needs to be to have sufficient funds to live comfortably for the remainder of your life while not working. Similarly, we should define our physical health based on our life expectancy and ability to live a quality life.
I know we are coming up to the warm months (though the 85+ days may have disappeared for a bit) and there’s a tendency to focus on bar-b-ques, baseball, summer camp, golf, etc. – and I totally agree with that – but you also need to push forward on taking the steps needed to secure your future. As JFK was known to say, “If not now, when?” When should be now – and trust me – addressing issues will not interfere with summer fun – it will actually make the time “more fun” because you will know you’ve taken the critical step of eliminating you from the statics of articles like the one cited in the Journal.
Here’s what you should do – sign up for our FREE Seminar this coming Wednesday evening, “There’s No Better Way to Enjoy Summer than to Become Debt Free.” I hope to see you there and most of all – to help you realign your financial well-being so your financial future is secured.