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WHY AMERICANS ARE GOING BROKE:

This article starts by saying that despite rising interest rates, high inflation, and shrinking savings, consumer spending has not slowed down – instead, it’s skyrocketed higher. Americans spent 5.8% more in August than a year earlier, airline revenue boomed, and the experience-economy was better than ever, with sites like Ticketmaster selling 18% more than they did in 2022.

As they say: “A tough housing market has more consumers writing off something they’d historically save for, while the pandemic showed the instability of any long-term plans related to health, work or day-to-day life. So, they are spending on once-in-a-lifetime experiences because they worry they may not be able to do them later.” 

This is also compounded by 5 main reasons:

1. A Robust Job Market.
By all measures, the jobs market has almost completely returned to pre-pandemic levels, with businesses less desperate to fill a large number of open positions as a result of worker shortages.

2. American’s Are Playing With “House Money.”
It’s reported that “Americans collectively pocketed about $280 billion from tapping the equity in their homes and saved about $120 billion from refinancings,” allowing them to spend a lot more money than they would, otherwise.

3. Excess Savings
This refers to all the “extra money” that Americans were able to accumulate from staying home, not spending money, receiving stimulus checks, collecting unemployment, and otherwise seeing a surplus being deposited into their bank account.

4. The “Buy Now” Approach
For the majority of products, prices have risen each and every year since 2020. This has caused people to take the approach that – it’s better to buy today before prices have a chance to go higher – so, they’re spending upfront in an effort to save.

5. New Outlook On Life
For a lot of people, the shut down forced them to view their life and mortality in a different way; it made them appreciate what they were previously missing out on, or just how quickly situations can change, so they’re deciding to live it up today, while they still can.

THE BEST WAYS TO SAVE:

“The Dave Ramsey Zero Budget Method”
With THIS strategy, the goal is that – in the very beginning – your monthly income and monthly expenses should equal absolutely $0, so that way – every single dollar is accounted for and gets allocated for a specific purpose.

The 50/30/20 Rule: 50% Needs, 30% Wants, 20% Savings
Half of your overall budget should go to the absolute necessities that you can’t possibly live without. From there, 30% is allocated towards “wants” – which, is another word for optional, discretionary spending. And finally, 20% gets allocated for savings and investments.

HOW TO START:

1. START IMMEDIATELY
You have the most momentum when you’re initially excited about the idea of trying something new and ONCE you start, you’ll be much more likely to keep it going.

2. ITEMIZE YOUR EXPENSES
All you need to do is make a free account with any money-tracking platform – and from there, you can see exactly how much money is going into and OUT OF your accounts every single day.

3. SCALE BACK SPENDING
Here are the top 10 categories that are easiest to cut back:

4. PAY YOURSELF FIRST
I’m running out of space to write more in the description, so watch the video all the way through – enjoy!

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*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice….(read more)

LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

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HOW TO INVEST IN SILVER: Silver IRA Investing

It seems that Americans are spending like there’s no tomorrow. With the rise of consumer confidence and a strong economy, people are opening their wallets and emptying them out at a rapid pace. From extravagant vacations to expensive luxury goods, it seems that the American consumer is not holding back.

According to recent reports, consumer spending has increased significantly in the past year. In fact, the Commerce Department reported that consumer spending rose 0.6% in May, the largest increase since December. This trend is not limited to just one area of spending. Americans are shelling out money on everything from cars and houses to dining out and entertainment.

One of the driving factors behind this surge in spending is the strong job market. With unemployment at a 50-year low, people are feeling more secure in their jobs and are therefore more willing to spend. Additionally, wages have also been steadily increasing, giving Americans more disposable income to play with.

The increase in spending can also be attributed to a change in mindset. After years of frugality following the 2008 economic crisis, Americans are now more willing to indulge in luxuries and experiences. Many are adopting a “you only live once” mentality and are prioritizing living in the moment over saving for the future.

Furthermore, the rise of social media has had a significant impact on spending habits. People are constantly bombarded with images of glamorous vacations, designer clothes, and high-end dining experiences, and as a result, many feel pressured to keep up with the Joneses. This has led to a “fear of missing out” culture, where people feel compelled to spend money in order to keep up with their peers.

While the surge in spending has certainly contributed to a robust economy, it is not without its drawbacks. Many Americans are going into debt in order to fund their extravagant lifestyles. According to a recent study by Northwestern Mutual, the average American has roughly $38,000 in personal debt, excluding mortgages. This has raised concerns about the long-term financial stability of many households.

In conclusion, while the surge in consumer spending is a sign of a strong economy, it is important for Americans to be mindful of their financial habits. Overspending can lead to debt and financial insecurity in the long run. It is crucial for individuals to strike a balance between living in the present and planning for the future. As tempting as it may be to spend like there’s no tomorrow, it is important to consider the consequences of such actions.