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Four Obstacles to Your Financial Health

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High Taxes                  

Taxes are here to stay, Sales Tax, Property Tax, Estate Tax, Income Tax, Sin Tax and Payroll Tax.  You cannot seem to get away from them.  What can you possibly do?  

According to The Tax Foundation, the average American has to work until April 17th just to pay federal, state, and local taxes.  Back in 1900, “Tax Freedom Day” came on January 22nd.

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High Debt

 

For households that have credit card debt, the average amount of credit card debt is an astounding $15,799.

According to the credit card calculator on the Federal Reserve website, if you have a $10,000 credit card balance and you are being charged a rate of 13.10 percent and you only make the minimum payment each time, it will take you 27 years to pay it off and you will end up paying back a total of $21,271.

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Limited Income

 

There are but so many hours in a day and with such limited time, you can only make but so much money.  Many times one job or one source of income is just not enough. 

There are many Americans, that suffer from the lack of an adequate income due to todays unstable job situation.  Many find themselves victims of an untimely downsizing,

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Inflation

 

Inflation is one of the biggest problems that we face in our effort to build wealth.  It affects the value of our dollar which affects our standard of living

Inflation is the silent killer of wealth.  Inflation can rob you of your spending power, which means that you may have to pay more for the same good and services.  Retirees are the most affected by inflation, because they are now living on a fixed income, there are no more raises, bonuses or employer contributions.  Wage earners experience the same when their wages remain flat or if inflation grows faster than their wages increases.

Inflation can benefit you also if you were fortunate enough to have accumulated some assets such as stocks or houses before the price has risen.

When faced with inflation you can either curb your spending or borrow the extra funds to maintain your current standard of living.

Bureau of Labor Statistics CPI Inflation Calculator

 

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