Mount Jackson, VA (PRWEB) November 15, 2007
Mike Peterson sees lots of individuals and families of every income level who simply don’t have enough money. Peterson is the co-founder of The American Credit Foundation and author of the recent book “Reality Millionaire: Proven Tips to Retire Rich.”
According to a survey published by Pew Research Center in September 2006, more than three quarters of today’s workers (77%) expect to work for pay even after they retire. This expectation contrasts strongly with the experiences of people who are already retired – just 12% of whom are currently working for pay (either part or full time), according to the Pew survey.
“I see people everyday who are absolutely miserable because they don’t make enough money,” says Peterson. “What might shock you is that when you look at their incomes, they range from as little as $ 20,000 per year up to as much as $ 250,000 per year, yet they all have the same problem. Not enough money.”
Two of the big problem causes that Peterson sees is that not enough people are in control of their finances and that not enough Americans in particular understand what credit and debt really mean to their futures.
There are two main factors with the first problem. Oftentimes with a married couple, one of the partners handles the finances and the other is blissfully unaware of either their current standing or their future outlook. Also, according to Peterson, “The average American Family cannot account for 10-15% of their income.”
Credit really is a misnomer, warns Peterson. If the common term ‘credit card’ were switched with ‘convenient debt trap’ people might be a little less excited about using (or more often, misusing) them.
People are lured into debt with the idea of instant gratification and a lack of understanding of how the numbers work against them.
In his book, “Reality Millionaire”, Peterson uses an example of a stereo system purchased on store credit that will cost the buyer more than three times its price tag ended 37 years. That’s a long time for even a top of the rimming stereo system to remain in working condition.
Peterson has identified a few of the mindsets he believing are part of the trend of increasing financial problems causing seniors to forego retirement: