This week, I heard some interesting statistics on Public
Television. A few years ago Japan suffered through a deep
recession for almost 10 straight years, while America had
relative boom times. During those ten years, the following
occurred:
Japanese citizens saved 27% of their income; Americans
saved essentially nothing.
The average Japanese family has a net worth of $177,000;
the average American family has a net worth of less than
$3000.
The average American family has almost $12,000 in consumer
debt -- in other words, many of us actually have a negative
net worth!
We make more money than any other nation on earth; and we
spend about 103% of what we make. This makes no sense!
The key to creating wealth is NOT simply in making more
money. The key is understanding how money works, saving a
bit every month, and using compound interest to your
advantage. This is not complicated. It is not very exciting
or difficult, but we seem unable (or unwilling) to do it.
Read a few good books on how money works. Find tools and
resources that can help you. Spend a bit less than you make
and invest the difference. You'll be glad you did!
Television. A few years ago Japan suffered through a deep
recession for almost 10 straight years, while America had
relative boom times. During those ten years, the following
occurred:
Japanese citizens saved 27% of their income; Americans
saved essentially nothing.
The average Japanese family has a net worth of $177,000;
the average American family has a net worth of less than
$3000.
The average American family has almost $12,000 in consumer
debt -- in other words, many of us actually have a negative
net worth!
We make more money than any other nation on earth; and we
spend about 103% of what we make. This makes no sense!
The key to creating wealth is NOT simply in making more
money. The key is understanding how money works, saving a
bit every month, and using compound interest to your
advantage. This is not complicated. It is not very exciting
or difficult, but we seem unable (or unwilling) to do it.
Read a few good books on how money works. Find tools and
resources that can help you. Spend a bit less than you make
and invest the difference. You'll be glad you did!
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