America the Land of the Free?

America is often referred to as the land of the free. But most people in this country are not really free. They are tied to debt and a treadmill existence in terms of earning a living. At this moment, our federal government has promised future social benefits in excess of $50 trillion. That figure is approximately the same amount of the total personal wealth held by Americans. In the future, it is very likely that the government will not be able to provide the promised social benefits to our seniors. The typical household in the United States has a net worth of just over $90,000. That is about the same annual cost of a decent quality nursing home. Also, if home equity and equity in motor vehicles is netted out of the $90,000, then the typical household's net worth drops down to about $30,000. That is only about 60 percent of the typical household's annual income. Therefore, it should be every one's goal to provide for their economic future by being fiscally responsible. Otherwise they're most likely become completely dependant on their children when they are no longer able to work.

What should you do if you want to be act more like the rich and eventually become rich? The simplest way is to live below one's means. The typical household should be able to put away 5 percent of their annual income while they are in their 30s, 10 percent when they are in their 40s, and 20 percent when they are in their 50s. If you want to find true happiness and wealth, living frugally, below your means will get you there. It will also guarantee freedom from wage slavery so prevalent in the U.S. today. By continually converting earned income to income producing assets, you will find the road to true freedom in America.