If you listen to any old timer, your are more than likely going to hear the phrase “things are not like they used to be.” While we often dismiss sentiments like these from the older generation, in many ways they are correct. No, candy doesn’t cost a penny anymore and you would be hard pressed to buy a cup of coffee for a nickel, that’s the nature of inflation, but especially in a time where the economic inequalities between regular Americans and the recently dubbed 1% are so vast it is easy to see things have changed. According to leading economic theorists, the idea of what was initially termed the American Dream has radically shifted in the last 40 years making upward mobility harder than it ever has been. Recent studies have shown that American consumers are at an all time low in terms of their savings and are mostly in debt.
In the coming months two Presidential hopefuls will go toe to toe about the state of the economy and the equity of the capitalist playing field in America. While it might seem that there is little one can do in the way of saving theses days there is hope. There needs to be a re-envisioning of the act of saving. It is important to remember that investing your money is in essence investing in your future. Many times we get bogged down in the stock market, but there are smaller scale saving and investment strategies that we can do everyday to get in the habit of saving. By buckling down your finances you can reduce debt with the eventual goal of paying off your debt and focusing on a financially secure future.
Stop Investing Your Money in the Daily Grind
As an adult you are probably no stranger to creating a budget. The problem is the blind spots, the little things that you are investing your money into that have only short term rewards. As an example consider your daily meals. With the hassle of modern day life we can easily lose sight of how much money we are nickel and diming away at our budgets. In your typical morning, you probably rush out of the house with barely any time to make breakfast or, at the least, make a cup of coffee. Think about the eight dollars you spend every morning to score that quick cup of coffee and bagel from your favorite coffee shop. If you were able to take the time to actually make your own breakfast and coffee you could save hundreds of dollars every year. While eating out or buying the cup of coffee might give you temporary pleasure, it can have long term effects on your financial goals.
Make a Budget and Cut Out the Fat in Your Spending
Sometimes it’s easy to feel like the whole world is locked in one giant cycle of one upmanship. We all have those friends who get the newest clothes as soon as they hit the store, the newest phones and gadgets, bugs and all. The internet is rife with stories of fashionistas that are funding their lavish lifestyle by taking out loan after loan, essentially assuming a great deal of debt. For what? The media focuses on celebrities like the Kardashians who are celebrities only for the sheer fact that they are wealthy. This focus on unreality doesn’t help. There is an unrealistic attitude toward wealth that is pervasive in modern society. This is why it is important to keep in mind that you really do not need the fanciest goods to have a meaningful life. One of the best ways to reduce debt is by defining what is really important to you and diagramming the steps and things you need to accomplish them. Odds are you don’t need to have five houses and a private helicopter to live a good life.
There is an old saying that the best way of getting out of debt is either by winning the lottery or never getting into debt to begin with. It seems that the safer bet is investing your money in your future to avoid going into further debt. Don’t let money dictate your life, seek financial help today.