Mo Money's Building Wealth Blog

Do you ever get the feeling that everyone around you has more money than you do? I mean just look at all their nice cars, new clothes, big houses, expensive jewelry, lavish vacations, spa treatments, etc. And if you dwell on it long enough it might just throw you into a deep depression. But like anything, looks can be deceiving.

If you could take a view into the finances of your family, friends, or neighbors there is a very good chance you might be very surprised. The fact of the matter is that Americans everywhere are maxed out on credit – including car leases and loans, home mortgages, student loans, and most importantly credit card debt. Debt has somehow worked its way into the social fabric of our society. And, living beyond your means and racking up excessive debt has somehow become acceptable. Sadly, people seem to be more concerned with trying to appear rich than they are with trying to get rich.

In 2023 The Motley Fool stated that the average credit card balance was $6,501. Also in 2023, a Bankrate survey indicated that almost 50% of all credit card holders were carrying a balance. At an average interest rate of 25% the rough math says that on a yearly basis the average cardholder is losing $1,625 in interest alone not to mention any late fees.

So, the moral of this story is that most people around you who appear to be rich are actually maxed out on credit. Many in reality are living paycheck to paycheck. The best thing that you can do is concentrate less on them and more on your own financial health. Specifically, reduce or eliminate your own debt and adopt a lifestyle that allows you to live within your means.