"What is the real cost of financial illiteracy?"
Posted on April 08, 2017 by Lee Menefee, One of Thousands of Career Coaches on Noomii.
The truth about financial freedom and retirement.
It’s extremely important that we understand financial literacy. If we think social security and a company pension will sustain our current lifestyle, think again.
If we think SSI will last forever, think again.
Its a fact, Social security is on life support and many pension funds are underfunded. Qualified funds such as a 401k are heavily taxed upon retirement or face huge penalties for early withdrawals. Also, you can’t save your way to wealth.
The harsh reality is that the poor and middle class families are under attack! A recent study cited that over 40% of Americans can’t handle a $400 emergency.
Credit card debt is out of control. And, please note that, paying the minimum on your credit card statement is designed to keep you in debt forever. Missing payments and poor credit scores result in higher interest rates.
We are spending money we don’t have and creating debt to buy things we don’t need and that’s not a good idea.
More households are living from paycheck to paycheck. The retirement age is moving to 70 versus 65.
Television commercials keep promoting mass consumption. This is morally irresponsible and motivated by corporate greed. Stop trying to keep pace with our neighbors to appear successful. Keeping pace is ridiculous and ruining your financial and personal health.
The biggest surprise of all is that, a vast number of American families have little or no savings.
The point of this article is to help you get your financial house in order.
Here are some of the questions you need to answer to help you breakthrough the craziness of financial illiteracy.
1. Do you put wants before needs?
2. Are you more concerned about looking good, that is, would rather buy a new car; boat or bigger house just to appear well-off?
3. Will you out live your 401k?"
4. If you stop working today, how long could you sustain your current lifestyle?
5. Are you positioned to leave your heirs something more than bad debt?
6. Are you carrying a 30 year mortgage versus a 15 year mortgage?
In closing, financial literacy is a must. Don’t be selfish, plan for the future because your family is depending on you!
