Part of the “American Dream” has always been to buy a house with a white picket fence. If you look at it realistically, what’s the point of buying a nice house with a white picket fence if you can’t afford it and you will be sinking deeper and deeper into debt with high interest rates and living hand to mouth just to make your mortgage payments? One must look at the crash of 2008 and realize that so many homeowner dreams were smashed when their home property devalued so much that to sell it would be at a loss. Need evidence? The 2008 20-city S&P Case-Shiller index, has posted losses for a staggering 27 months in a row. Home prices posted another record decline in October 2008, falling 18% compared with a year earlier. Granted it is 2015 but some places in the US have not recovered fully yet and some are still midway to recovery. So ask yourself, is it better to own a really nice home that you can’t afford and be in debt for the rest of your life or is it better to live within your means and buy or rent an affordable place to live?
According to CNBC, in 18 years the average tuition for a state university will be at least $41,228 a year. For a private university, it could be as high as $130,400 a year. No wonder many Americans are wondering how they can pay for their children’s education. Alternatively, a lot of parents are worried about their child taking on student loans and debt with these projections.
With Social Security a big question mark, uncertainty in the stock market, and rising inflation many baby boomers and seniors are quite worried about what the future holds. What happens if you have to work until you are 80? What happens if you are sick or disabled? All of these are valid concerns of people thinking about retirement.
The three above items are definitely real life issues to think about. The beneficial aspect is that once you are aware of these concerns, you can start making the appropriate actions to making these worries into a positive realty for you.