Americans are bad savers????

We’ve all heard this before: “Americans are bad savers.” Have you ever heard ANYONE say they don’t want to save money? Have you ever heard ANYONE say; “ah, saving money is for the birds?” Probably not: so why are we not good at saving our money like we should be? Maybe it’s because THERE IS NOTHING LEFT AT THE END OF THE MONTH TO SAVE! Why is that? Is it because you don’t make enough money? Is it because you spend too much money? Or do we listen to the pundits that say you are just fiscally irresponsible? Maybe you aren’t building a ‘rainy day’ savings account because you are contributing as much as you can into your 401(k) or IRA. It’s funny how those accounts are not really considered savings vehicles. They are considered your “retirement” accounts. Maybe it’s because you can’t have that money without paying exorbitant penalties prior to reaching a government-determined-appropriate age to make withdrawals.

You don't have to live a life of scarcity to save and get ahead. You can live a life of abundance, which you derserve, if you do it right.

I have seen the financial profiles of literally thousands of Americans and I can tell you exactly why Americans are not good savers; diversification of debt. That’s right. If you look at the economic profile of most Americans in this country their mortgage debt, credit card debt and vehicle debts are scattered throughout the land with just as many lenders as there are debts. One or two mortgages, both with different interest rates and different terms of repayment. One to three credit cards, all with different interest rates, no terms of repayment and monthly payment demands factored on the monthly demands of the card issuer. Vehicles are the same; a couple car loans with different interest rates with varying payments based on repayment terms (5-7 years these days). Each one of these debts takes their own piece of your monthly pay check. Combine that with the average monthly requirement for basic needs, approximately $2500 per month and you end up with a few nickels dropping out of your wallet at the end of the month. Get the picture? Is this you?

THIS IS WHY AMERICANS ARE BAD SAVERS…CONVENTIONAL PRACITCE AND CONVNETIONAL METHODS OF PERSONAL FINANCE ARE KILLING OUR ABILITY TO SAVE!!!!!

So what’s the solution? Consolidate your debt into a financial vehicle where there is only one interest rate, one monthly payment demand and terms you have control over.

Let’s assume your debt is diversified like most everyone else and to service those debts on a monthly basis it costs you $3000 to keep everyone happy. Now let’s assume you could consolidate that debt into a more favorable environment and your monthly servicing obligation was only $1000. This would improve your cash flow AND your ability to save by $2000. Would you not take a serious look into this new environment?

Wait a minute…this proposed environment is new. It’s not being offered by our trusted banker or any other bank or mortgage company in the country. It sounds too good to be true and nobody you know is doing it. If it isn’t main stream then it must be a scam. Is Bernie Madoff involved?

Let me bring you back to the real world…YOUR WORLD.

You have a 30 year mortgage that will pay the lender well over what you originally borrowed and you won’t actually own your home for 30 years. Not to mention, everything you have paid back goes into their tightly guarded coffers. (A 15 year mortgage is just as destructive.) Who is scamming who?

You use a checking account. Within the next 5 years you will deposit $100,000 - $500,000 or more into this account. You will just pay your bills from this account, but the bank is going to invest the majority and return to you virtually nothing. Who’s getting the short end of the stick here?

Your credit card company, much like your mortgage holder, will continually take more in finance charges out of your payment then principal. As well as, change rates, features, etc at their will. Who is controlling who in this environment?

So what is the point of this rant? If you want to save you HAVE to break the status quo. You have to come to the realization that just because we’ve been “instructed” to live our lives this way DOES NOT make it the RIGHT way. You need to challenge the status quo. You have to challenge the mortgage culture and the banking culture. You have to put yourself in a position to win, to put yourself in a position to save if you want to save. Here’s a little hint: Your home is the BEST savings vehicle you have. You just need to learn how to use it to your advantage.

If you want to improve your financial condition without sacrificing your lifestyle, your relationships or the life you have spent a life time trying to build I recommend you investigate a new model. You can’t get there by continuing to play the same old game.

The Truth Is In The Proof!