If you tell the average American that they’re one of the wealthiest people in the world, you might earn a chuckle. Surely that can’t be true?
Actually, it is. The Global Rich List, drawing upon data from the World Bank and global wealth statistics, has determined that an American worker earning an annual salary of $75,000 is among the top .11 percent in the world. What feels “average” to us, would actually be considered extravagant wealth in much of the world!
Yet, even though we are comparatively wealthy, many Americans are technically still “broke”. One third of our workers earning $75,000 or more annually report that they live paycheck to paycheck, with no savings in the bank. Only 37 percent of people aged 45 to 54 feel that they’re saving enough for retirement.
Clearly, even those of us with a relatively “average” income have great financial potential. So what’s holding us back, and why haven’t we stashed more in our Thrift Savings Plans or other forms of savings?
You aren’t budgeting. When is the last time you gathered a month’s worth of debit and credit card statements, to analyze your spending? Some expenses are set, like your mortgage payment, but most of us are spending way too much on unnecessary purchases each month.
You haven’t committed to a plan. Have you ever committed to a savings goal, or established a spending plan? Most of us just spend our paychecks as we earn them, and that’s a mistake.
You haven’t been making contributions to your TSP. Are you taking advantage of this saving opportunity? Have you increased your contributions throughout the years, as you received raises?
You haven’t sought professional guidance. You wouldn’t think twice about visiting a doctor for a check-up, or consulting with a mechanic over that funny noise your car is making… But have you met with a financial advisor to craft a long-term financial plan? Schedule an appointment with us, and we can help you analyze your rate of savings, set retirement goals, and begin taking full advantage of your relative wealth.
