The average household owes 20 percent more than it makes each year. The personal savings rate is in negative territory. Record numbers of Americans are losing their homes to foreclosure, and millions more are struggling to keep up with their monthly bills and obligations. And the nation’s economy isn’t in much better shape. The Treasury Department has estimated that, with the added costs of the economic stimulus plan passed by the House of Representatives this week in an effort to avoid a recession, the federal deficit could rise to as much as $400 billion this year.
I would say why Americans are going broke is pretty simple: they buy loads of stuff they can’t afford and don’t need. And the political leaders promote this get another credit card mentality of “budgeting”. This stuff is not that tricky. Don’t borrow what you can’t afford. Save money. Don’t buy frivolous stuff that you can’t afford and don’t really provide you value.
Related: USA Federal Debt Now $516,348 Per Household - Saving for Retirement - Financial Illiteracy Credit Trap - Earn more, spend more, want more
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[...] Failing to save is a huge problem in the USA. Spending money you don’t have (taking on personal debt) and not even having emergency savings and retirement savings lead to failed financial futures. Even though those in the USA today are among the richest people ever to live many still seem to have trouble saving. Here is a simple tip to improve that result for yourself. [...]