Apparently, 76% of American middle class families are no longer "financially secure." The most obvious culprit for this that comes to mind is the tendency of Americans to overextend themselves and save very little money. That's a very significant part of the reason why our economy is in the toilet right now. A lot of industries depend on Americans spending a lot more money than they are saving, such as the auto industry, restaurants and retailers. Some of the statistics on credit card debt depend on who is doing the measuring, but between car loans, mortgages and student loans, credit cards are often the least of a middle class family's worry.
Of all of the things that most middle class Americans spend their money on, college educations are often the biggest rip offs. Forget what they say about the average college graduate making more money over their lifetime than someone with just a high school degree. If your degree isn't in a lucrative field, it's probably safer to assume that that common refrain about college educations wasn't referring to you. For most people, it makes more sense to work during the day, go to community college at night and work out an arrangement with an employer for paying for the tuition for a bachelor's degree if one is actually required by the job.
The mortgage crisis too was predictable. In fact, after the dotcom bubble burst in early 2000, and many families lost their investments, they should have sobered up and realized that a similar thing was happening to real estate values. Whenever there are investors filled with irrational exuberance, there is trouble ahead. It's not a matter of if, but rather a matter of when.
Student loans and a car payment or two got you down? Buy a house you can't really afford to live in, and flip it for a cool $100K. That'll make you feel better.
The only way out of this is for people to learn to save a lot of money. That may mean that a lot of middle class families have to do without, but it'll produce more economic stability as the economy adapts to people adopting new habits like holding onto their cars longer, eating out less and buying more modest homes.
Of all of the things that most middle class Americans spend their money on, college educations are often the biggest rip offs. Forget what they say about the average college graduate making more money over their lifetime than someone with just a high school degree. If your degree isn't in a lucrative field, it's probably safer to assume that that common refrain about college educations wasn't referring to you. For most people, it makes more sense to work during the day, go to community college at night and work out an arrangement with an employer for paying for the tuition for a bachelor's degree if one is actually required by the job.
The mortgage crisis too was predictable. In fact, after the dotcom bubble burst in early 2000, and many families lost their investments, they should have sobered up and realized that a similar thing was happening to real estate values. Whenever there are investors filled with irrational exuberance, there is trouble ahead. It's not a matter of if, but rather a matter of when.
Student loans and a car payment or two got you down? Buy a house you can't really afford to live in, and flip it for a cool $100K. That'll make you feel better.
The only way out of this is for people to learn to save a lot of money. That may mean that a lot of middle class families have to do without, but it'll produce more economic stability as the economy adapts to people adopting new habits like holding onto their cars longer, eating out less and buying more modest homes.
I don't believe my Anthropology degree generated ANY sort of increase in my income stream since graduation. My wife who is absent the college sheepskin has also always made more money than me. Anyhow the house is paid-off and we don't have any debts - and still some good equity despite the current market...
Well, your pay check will go A LOT farther once you have your house paid off.
I need to get BACK to work, I have expensive hobbies! Since the eBook collapse I've been a househusband.