How do we measure success and the American Dream anymore? To own a home and have a safe and secure future with a retirement?

The stark reality is, for most Americans this is just out of reach. Just look at how the average American is spending their hard-earned paychecks:

24% is all we get to live on…..

33% of every dollar we earn goes to interest payments

41% of every dollar goes to taxes spread over all forms of taxes

Only 3% is going to savings!

How on Earth are we supposed to save enough to enjoy our retirement years or cover the cost of inflation? This is while we see 55% of Americans now behind $700 or more on their utility bills. In fact, in a recent article, JPMorgan predicted  "Consumer Cash Pile May Be Exhausted By Mid-2023."

So, what is to be done? If we cannot save more, then we have to spend less or spend smarter…

Let me ask, when was the last time you saw real interest being paid to your checking or savings accounts? The Bureau of Labor Statistics reports the current Consumer Price Index, or the inflation guage, is 7.1% over the past year. The CPI for all items rose 0.4% in October, primarily due to major hikes in shelter, gasoline and food.

In October, the Consumer Price Index for All Urban Consumers increased 0.4%, seasonally adjusted, and rose 7.7% over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.3% in October and was up 6.3% over the year.

Did you read that? 7.7%! What is your bank or savings account paying you? 0.01% Maybe you are lucky and get 1%. Whatever little amount you are being paid, the reality is the same. If you don’t earn interest, you are a net payor of interest.

Quick math lesson on the rule of 72. This is the formula to see how quickly your money doubles but it can also tell us how long until the buying power of your dollar is cut in half. So, at a 7.7% rate of inflation, 72/7.7= 9.3506 years. This means in 9.4 years the value of your money is going to be cut in half and only buy you half of the goods and services it used to.

So here is our problem: How are you going to double your income in 9.4 years just to keep up with the cost of goods?

Logically we have 3 options:

1. Earn more money

2. Live on less

3. Free up more of your existing money to make up the difference

So what is your solution?

Option 1# I know most people are trying to get the highest paycheck they can but are limited for a variety of reasons including Location, Education and Time.

Option 2#Can you live on less than you already are? Can you get by on 23% of your income for food and lifestyle choices? This the number #1 reason people rarely stick to budgets.

So that leaves us option number #3 Free up more of your existing money to make up the difference.

How do you do this? Become debt free! There are a variety of ways to do this, the most important factor is taking a hard look at, and possibly adjusting, your lifestyle and comfort.

If you choose an option that makes you live on PB&J for the next 5 years you will probably not stay on track.

There are other options that use a variety of tools to enhance your savings. These debt elimination programs, in my humble opinion, are superior. I have used both options over the last 20 years, and I can tell you the second is much easier to implement.

Programs like Control Your Assets can help you earn as much as 25% more money to pay off your debts and typically you can become debt free in 7-10 years, Or right around the time you will need the extra money!

My favorite part is you don’t need to spend more money than you already are to accomplish this. To learn more about your options and receive a complementary Debt Evaluation go to www.mydebtcloud.com and sign up for a free 1-hour educational session with a debt specialist and learn when you can become debt free too.
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Mario Henry (www.housevisors.com), a former National Football League player, is a financial services professional with 18 years of experience in the industry and author of How to Hire Your House, an innovative guide on how to create a tax-free pension and sustain sufficient income through retirement. Mario also is a licensed insurance broker and a national motivational speaker. He was a wide receiver with the NFL’s New England Patriots and a scholarship football player at Rutgers University.