Based on U.S. Census data, workers in the average household will earn $52,000 annually and make approximately $2 million over their lifetime. Of course if you are a CPA, you will earn double that or more. A trial attorney will make over $12,000,000 in their lifetime. But I want to look at averages to make a point: that most people do not process their money efficiently, regardless of how much they make!
Census data also shows that at retirement, the average household will have less than $60,000 in total assets including their home. How is it possible to make $2 million in a lifetime and barely have $60,000 left to show for it? And why are 92 percent of all retired people totally dependent on Social Security income?
Refer to this picture of a funnel and I will answer the question of why most people can’t seem to manage they income and payouts. First, we make $2 million in a lifetime. The first thing that happens are taxes are taken out. Second, we have to live, so we buy food, clothing, other living expenses. Third, we pay our debts, a mortgage, car payments, credit cards. After all of these obligations are paid, historically as a nation, we are finally able to save 2 to 3 percent. This example shows that the average person does make a lot of money over a lifetime, but that a great portion of it goes to taxes, living expenses, and debts.
After a lifetime of working, what we hope to end up with is a nice little “nest egg,” or a large amount of our earnings set aside in the form of savings. But let’s take a look at what happens to our “nest egg” after we have managed to put some money into it.
Several events can drain off a substantial portion of our savings. For example, we could make bad investments, or the economy could experience inflation. Perhaps we get laid off from our job, experience sickness, or we feel the effects of technological changes. We might go through a divorce. Fifty-two percent of the people in our nation are divorced. This can be very financially challenging, let alone emotionally challenging. Impulse spending draws off another substantial portion. Twenty-five to 50 percent of all purchases are unplanned. More taxes, job lay-offs, technology changes, and any or all of these types of events could occur over a life time. So it is little wonder that we find it hard to get ahead and keep our “nest egg.”
Money Mastery is all about how to stop this inefficient processing of money. It will show you how to systematically stop the transfer of your money away from you and get it back under your control. It will also show you how to maximize the amount of money you will have at retirement, and get out of all debt, your mortgage included, within 10 years or less.
For more information about how you should really be managing your money (contrary to what all the so-called financial “experts” are telling you), contact me today: peter@moneymastery.com.
Census data also shows that at retirement, the average household will have less than $60,000 in total assets including their home. How is it possible to make $2 million in a lifetime and barely have $60,000 left to show for it? And why are 92 percent of all retired people totally dependent on Social Security income?
Refer to this picture of a funnel and I will answer the question of why most people can’t seem to manage they income and payouts. First, we make $2 million in a lifetime. The first thing that happens are taxes are taken out. Second, we have to live, so we buy food, clothing, other living expenses. Third, we pay our debts, a mortgage, car payments, credit cards. After all of these obligations are paid, historically as a nation, we are finally able to save 2 to 3 percent. This example shows that the average person does make a lot of money over a lifetime, but that a great portion of it goes to taxes, living expenses, and debts.
After a lifetime of working, what we hope to end up with is a nice little “nest egg,” or a large amount of our earnings set aside in the form of savings. But let’s take a look at what happens to our “nest egg” after we have managed to put some money into it.
Several events can drain off a substantial portion of our savings. For example, we could make bad investments, or the economy could experience inflation. Perhaps we get laid off from our job, experience sickness, or we feel the effects of technological changes. We might go through a divorce. Fifty-two percent of the people in our nation are divorced. This can be very financially challenging, let alone emotionally challenging. Impulse spending draws off another substantial portion. Twenty-five to 50 percent of all purchases are unplanned. More taxes, job lay-offs, technology changes, and any or all of these types of events could occur over a life time. So it is little wonder that we find it hard to get ahead and keep our “nest egg.”
Money Mastery is all about how to stop this inefficient processing of money. It will show you how to systematically stop the transfer of your money away from you and get it back under your control. It will also show you how to maximize the amount of money you will have at retirement, and get out of all debt, your mortgage included, within 10 years or less.
For more information about how you should really be managing your money (contrary to what all the so-called financial “experts” are telling you), contact me today: peter@moneymastery.com.
