Every week I devote several hours of research time perusing personal finance-related websites, blogs, magazines and books in order to stay abreast of the latest news and sentiment (i.e. tax reform, health care costs, retirement research). Otherwise I risk doing my readers an injustice by not providing relevant and topical material – or so goes my thinking.
As I conduct my research, occasionally, I come across articles that add value and expand my knowledge base or expand my thinking in new ways. But when analyzing mainstream personal finance advice, one thing becomes abundantly clear: mainstream personal finance advice primarily targets average Americans – the target being: when it comes to personal finances: most Americans.
Average personal savings rate among active workers stands at just 5% (although millennial personal savings rates may even be negative), with only $5,000 saved in retirement savings for active workers at active workplaces on average (17K in credit card debt, $182K mortgage debt, $30K auto debt and $50K student debt being held as debt).
55% of American’s live paycheck-to-paycheck, and one unexpected expense can put them over their limit and into debt.
Status Quo in Personal Finance for Americans can be pretty dismal, and in order to protect their jobs from comment troll haters (something I fervently support these days), media outlets must offer aspirational advice for the average American. For instance:
Spend less than you earn to save, following mainstream advice of 10% savings rule; establish 3-month emergency fund and spend three months salary on engagement ring; place 20% or less down payment on home; save 10X ending salary as retirement fund contribution and use cash or debit cards instead of credit cards to make purchases and payments; buy collision insurance on every auto.
Work until at least age 70
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