QUICK FACTS
- Two thirds of Americans have less than $1000 to pay for an emergency, according to The Associated Press-NORC Center for Public Affairs Research.
- Less than a quarter of millennials have basic financial literacy, according to National Endowment for Financial Education
- Almost one third of Americans pay the minimum repayment due on their credit card each month, according to FINRA’s National Financial Capability Study.
- The average total debt for millennials rose to $80,000 in 2019, according to a study done by Experian Credit Score Checker.
- But only 1 in 5 people facing financial hardship fall below the poverty line and make less than $40,000 per year, according to a study done by Experian Credit Score Checker.
And the same pattern appears in almost every developed western economy. People aren’t managing their finances properly. They’re living pay check to paycheck.
What's causing the financial hardship?
The two biggest reasons why people find themselves in financial hardship.
- They have debt they do not know how to manage properly.
- They live an unstainable lifestyle for their income level.
There are many reasons a person may find themselves in debt, most are avoidable with healthy financial attitudes towards spending, but others feel like they’re institutionally unavoidable.
Such as student loans or a mortgage.
For Americans, the biggest cause of financial hardship is related to education. Be it student loans, or having limited career prospects due to the lack of education. Most Americans find themselves locked into an unfavourable financial situation because of it.
The cost of higher education in USA has increased 8 times faster than wages as of 2018 and this trend doesn’t seem to be changing anytime soon. This ultimately means, not getting a degree can limit your income potential and getting a degree will mean crippling life-long debt.
But even without the troubles of expensive education, the cost of living has also increased faster than wages across every developed country. It means, you don’t have to be splurging irresponsibly to find yourself in debt. It could be as simple as eating out a few times too often or having a car that you have to constantly send to the garage for a fix.
How to stop living paycheck to paycheck
Although student debt suck and real estate markets feel like a pipedream for many, only 1 in 5 Americans fall below the poverty line. But 2 in 3 Americans have less than $1000 saved.
Obviously something is missing. And its financial literacy.
Here at MDW, I aim to help you do 3 things when it comes to having better financial health.
- Learn the basics of financial literacy. This means, how to create an emergency fund, a budget you can keep to start saving money every month and important banking know-how you wish you got taught in school.
- Learn the right money attitudes you need to start creating wealth in the long term. This means adjusting your spending habits, and learning how to handle debt in a way that benefits you.
- Learn how to invest your money and make it work for you for a secure retirement, because no one became rich from a salary alone.
who am i?
I’m just a normal person facing all the same problems as everyone else, but reached financial freedom in 2017 because I decided to approach life differently than most.
I live a location independent life with 6 income streams, 4 of which are passive income I make online. I live debt free and most importantly, stress free because I don’t live paycheck to paycheck.
But I didn’t do it all on my own ingenuity. My parents gave me a great financial education since I was young and taught me everything they know about handling money. These same parents of mine retired in their 40’s to travel the world.
And now I’m on schedule to meet my own retirement goal of retiring at 35. Let me help you do the same.
