Category: Finances

Financial Uncertainty Is a Certainty

There are many unknowns in life, but there are also many other things that we can count on occurring.

One is financial uncertainty.

Last Friday, after the U.K. voted to leave the EU, the financial markets took a nosedive, and many people lost money.  How long and how vast the effects will be are unknown.

But financial uncertainty is…well…a certainty.

Are you prepared for it? Continue reading “Financial Uncertainty Is a Certainty”

Are You Gambling with Debt?

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As of September 2015, the total outstanding revolving debt in the U.S. (i.e. from mostly credit cards) was $925,200,000,000.1 That’s almost a trillion dollars! According to recent statistics, the average U.S. household owes $7281 in credit card debt….yes, just credit card debt. That doesn’t include mortgages, car loans, student loans, and other installment debt. What’s worse is that after you remove those families who do not carry any revolving balances from the statistics pool, the average household then owes $15,609.2 According to a prediction by CardHub, by the end of this year, Americans will be $60 billion more in debt then they were at the end of 2014, which they conclude as “putting us perilously close to a tipping point at which balances become unsustainable and delinquency rates skyrocket.”3 If that were not enough for concern alone, the U.S. public debt is now 105% of its GNP, which is the highest it has been during peacetime. This led a couple of economists to state that “[t]he persistence of high debt has moved the US into uncharted territory.”4

The American economy, it seems, is like a giant house of cards just waiting perilously for the next breeze to just blow it down.

Americans are gambling with debt.

Are you?

Continue reading “Are You Gambling with Debt?”

Financial Preparedness

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This week’s current events in Greece should highlight the importance of being prepared BEFORE something happens. As ATM’s ran dry, as the banks closed for days, as citizens scrambled to stock up on needed supplies such as food and fuel, the events have illustrated just how easily everyday life could plunge into near chaos.

What is interesting about these events, however, is that the crisis was not brought on by a natural disaster, physical warfare, or a health epidemic. It was brought on by simple economics…and all of us are at risk of the same fate.

So…how have you prepared for an economic emergency?

Emergencies of an economic nature can be on a large scale, such as what we are witnessing in Greece, or they can be events which just affect you and your family. It all depends upon the occasion. Whether it is a bank collapse, too much debt, or a job loss, any economic crisis can greatly affect you. However, the more you are prepared, the better position you would be in to be able to weather the storm.

So what should one do to prepare for an economic emergency?

Continue reading “Financial Preparedness”