A Guest Post from Crystal –
The level of debt amongst ordinary American citizens suggests that few are really good at managing money. While no one is suggesting it is always easy there are a few pointers that might be able to help you whatever your age. The tendency for people to spend what they earn each month and sometimes more makes saving and investment alien to a whole section of the population. You should resist that and start to pay more attention to your circumstances, present financial position and the future.
Some increase their assets relying on real estate. It has been a good way to build up money though the recession was a period when values dropped, sometimes alarmingly. In the medium to long term real estate however should always be a good investment. There are other alternatives. The S&P 500 has shown average growth since 1871 of over 10%. A single dollar invested in 1871 would now be worth $2.25 million, well ahead of inflation don’t you think? The figure is even better over the last 40 years. Even if you have no financial expertise you can expect good growth if you invest, the earlier in your adult life the better.
If you had started with only $500 in your first year and put aside $250 each year for investment over the next 30 years, that $8000 at 8% would have grown to over $35,000! The amounts involved are easily affordable are they not? Compound interest produces considerable growth over a long period.
It is a message that more young people seem to be getting rather than turning exclusively to student loans and the credit cards they can first obtain at the age of 18. The picture is still poor however with two thirds of students still needing to borrow at least 25% of their education costs knowing that it can take up to 10 years to pay off the loan. Figures show that this year’s graduates with student debt owe on average $35,000.
NerdWallet tells us that the average US household owes $15,000 or so with interest paid on credit cards reaching a massive $90 billion. Frightening, isn’t it? The picture doesn’t look good, yet compound interest results in money growing quickly. The smallest amount set aside will grow. The secret is to get rid of debt so that you can start to set it aside.
The terms of a student loan are not onerous but the interest that is added to any balance on a credit card every month could be described as penal. Some students who have used their first card for normal daily living will be paying a high price. It is one that many US households seem to be paying as well.
As the US Economy improves after the years of recession unemployment figures are encouraging. Job are being created month on month and unemployment levels are back down to the level when the economy was buoyant before the recession hit. Those people that have a regular pay check coming in each month can look for an escape from expensive debt in today’s online lenders network at realisticloans.com that look at personal loan applicants and approve loans based upon the concept of affordability rather than credit score.
The application is quick and simple. All you have to do is to decide to act to sort out your financial problems. If you don’t the chances of building up a fund as illustrated above are minimal. Online lenders deal with applicants in this completely online process within hours of the email being sent. They require employment and bank details from applicants. If the sum being sought can be justified by the figures the money will be transferred electronically very quickly. A loan that can completely remove credit card debt is good news. The caveat is that you do not build up a balance again; there may not be an escape route.
Whatever your age you must think about the future and not rely on the Social Security System as your ultimate savior. The sooner you address any financial difficulties you have the better. Retirement years should be ones of comfort not sacrifice. They can be if you are proactive and don’t simply think the future will look after itself.