The Financial Deception in America

By: Peter Beckinsale

Recent research shows that for every $100 the average American brings home in earnings, they spend $101 of it. This means that the savings rate of Americans is negative, and this rate rivals the savings rates of Americans during the Great Depression in 1933. If this information doesn't scare you, it should. While the United States is commonly thought of as the richest country in the world, this savings rate shows that we aren't nearly as rich as we would like to make out.

The typical American is what I would like to call "credit rich." We are rich in the sense that the banks and credit card companies will loan most of us money. Therefore, we are able to pay for homes, cars, electronics, and the many other goods we use on a daily basis. Because of the possessions we have, many people both inside and outside the U.S. believe that we are rich. In reality, much of the things we own are paid for by borrowing from the lending companies. It only "seems" like we're rich. It is this phenomenon I refer to as the "Finance deception in America." Americans have been indoctrinated in what I will call the credit based system.

We have been lead to believe that we must borrow in order to be financially independent. If you want to go to college, you are told to get a student loan. If you want to start a business, you are told to get a business loan. If you want to buy a car, you are told to get an auto loan. You see, our entire society is based on credit. The problem is, when you borrow money, the odds are not in your favor. The odds are always in the favor of the person or entity that lends money to you. Many Americans talk about living in a "free country," but most of them cow tow to the likes of credit card companies, banks, and car dealers. It is hard to say you live in a free country when the average American owes more than $10,000 in credit card debt.

When you borrow money, you will always dance to the tune of the lender. In America, everyone borrows, including the Federal government! Is it any wonder that Americans are so strapped for cash? Is it any wonder that the cost of everyday goods continue to increase? If you want to put yourself on the path to financial independence, you must first get past the financial deception in America. You must see things for what they are, and most importantly, you must act on it. Once you do this, you will find that the secret to wealth is not as complicated as you might think.

To get past the financial deception that so many people have fell for, there are two things which you must do. First, you must realize that "having" money is much more valuable than making it. Second, you must understand that the borrower always loses, and the lender always wins. To learn more about my financial philosophy, please visit my homepage at the link below.

Finance Wars - Because saving money is the true foundation for wealth.

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