Todd Kunsman is a 29-year-old who started his FIRE journey 3 years ago. His story is an inspiration to many who are looking to follow in his footsteps. His previous guest posts include 8 Steps To Financial Freedom and 5 Steps To Start Saving.
One of the most important numbers you should calculate and track consistently is your net-worth, which is your total assets (those things worth money like your house and any investments) and your total liabilities (what you owe money on like credit card, mortgages, and student loan debt). If you paid off all of your debts, your net worth would increase. It’s important to keep track of your net worth because it’s a good indicator of your financial health.
Assets – Liabilities = Net-Worth
Net-worth will go up as your investments grow and you pay down debt. It’s important to keep an eye on your finances, as this will help you understand where you stand financially. It is essential to invest while paying back your student loans. By investing while paying back your student loans, you can increase your financial security and reduce the stress of loan repayment. Ever since I started my financial journey I’ve been tracking my net worth using free tools like
In This Article
Median Net Worth in the United States
A friend and I were talking about a stat from an article. The statistic that we were talking about was was from an article in Business Insider from Jim Wang showcasing the average net worth for the different age groups of Americans.
Given that the average savings rate in the United States has fallen to a 7 year low at only 2.9%, it’s not really surprising, but incredibly disconcerting to see that the members of my age group (under 35) have a net worth of less than $6k. That’s
The 35-44 age group has a net-worth of $35,000. That’s crazy considering
- Average price for a car in the United States is a whopping $34,968
- Average student loan debt is $34,144
- the higher cost of living
This is a recipe for disaster. The consequences could be dire if not addressed quickly. There is a bleak picture of Americans and the hole is getting bigger to get out of. We need to act now to make sure future generations don’t have to deal with the same debt burden. It also doesn’t get any prettier for just millennial net worths either based on a more detailed analysis on The College Investor:
I was asked by my friend why I thought more people in our age group were stuck at a certain net worth. The cost of living, lack of financial literacy, and access to resources make it difficult to make a change. Then he asked, “Was it that hard for you to change your situation?” The answer is yes and no. It depends on the situation.
Top 5 Money Excuses Holding You Back
There are a few common excuses people make about money that keep them from saving and investing. Taking the time to understand your own financial situation and create a plan that works for you is the best way to overcome these excuses. These are the same money excuses that are keeping people from pursuing (and eventually achieving) financial independence.
Send this to your family or friends who are making excuses and need to start saving money. Online budgeting tools can help you keep track of your spending and make sure you are saving enough each month. All of our futures are dependent on it. We need to come together to ensure a brighter future. Get those net worths up! Today is the day to start planning and investing.
Excuse #1: “ I don’t have time to budget and look at my personal finances”
One of the most common excuses I hear from my friends, colleagues, and others is a lack of time. It’s important for us to make the most of our time and be aware of how we spend it, because time is a precious commodity. Everyone has busy schedules whether it be school, work, family, or kids. Finding balance between all of these commitments can be a challenge, but it is possible with some careful planning and perspective. A majority of people are busy. It can be hard to find time for leisure activities.
I bet most people find time to play sports, watch sports, and go shopping. Many people find time to engage in hobbies such as painting, reading, cooking, and learning new skills. Americans watch an insane amount of television each week. Older Americans watch an average of 5.14 hours a week while the average young person watches 26 hours a week.
It is easy to take 30 minutes a month to plan and manage your finances. By taking the time to do this, you can make sure that your finances are in order and that you are making the most of your money. That isn’t much time. We don’t have much time left, so let’s get started right away. It takes less time than you think. It can be rewarding if you give it a try.
There are tons of free tools out there like Mint and
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