One of my favourite sayings is “if you do what everyone else does, you’ll have what everyone else has” and quite frankly, when I look around me, I’m not sure having what others have is what I want. Generally speaking, when it comes to money, most people are either in a ton of debt, have very little savings, have an insignificant income or a combination of all three. Again, this is not a position you, nor I, want to be in. As such, if we want to get ahead financially, we need to take the road less travelled and one way to do this is to invest unlike the rest. As such, let’s dive into how much you should be investing if you want to live a financial life well above the average!
As I just alluded to, most people’s financial situations aren’t great. The median American’s bank balance has just $5,300 in it meaning that they are one major car repair or broken fridge away from having their piggy bank’s fully depleted. Ironically enough, the average American credit card balance is also $5,300 which may not seem overly consequential to you until you realize that if you’re only making the minimum payments on your card, it would take you nearly 3 years to pay off and cost you an extra $1,400 in interest. Finally, recent polls show that the median income for a single American individual is just $36,000 a year. I don’t mean to offend anyone who makes this amount of money but I think we can both agree that making this income is not going to have your racing up the Forbes list any time soon. Therefore, as you can see, doing what everyone else does and having what everyone else has is not exactly what you want to aim for if financial abundance is your goal.
So far, we’ve talked about people’s propensity to save, manage debt and earn but the final piece of the financial pie we can’t overlook is investing. Now, let’s call it like it is, not everyone regularly invests. Some people are too scared to part with their money and would rather keep it “safe” in the bank. Others have no idea how to even execute a trade order and as such never give their money a chance to grow. Finally, we have those who don’t even have a dime in the bank to invest with therefore for them, investing is off the table.
Fortunately, over the past few years, more and more people have been taking an interest in investing and as someone who…