Report after report indicates that people in the United States still live paycheck to paycheck. Just google ‘statistics on paycheck to paycheck’ and you’ll find that there is no shortage of information on the topic. From the poor (average median income $21,000) to the middle class (average median income $41,000), everyone appears to be months, weeks, or even a pay period away from a personal economic disaster.
Bankrate.com reported that roughly 75% of Americans who do live hand-to-mouth also have very little saved for emergencies, like a job loss or an unexpected medical expense. 50% of people have less than a three month savings cushion, and 27% of people have no savings at all.
Economic researchers and analysts from Brookings, dove deep into what is really happening with the mentality and spending of 1/3 of all Americans. In short their theory commentated on how there is really no difference between the “rich” and “poor” living hand-to-mouth because the rich might have assets, but cannot readily access the liquid of those assets; versus the poor who use cash for their immediate survival. (CNN Money)
Using Life Insurance to get Ahead
These statistical findings on paycheck to paycheck living is what makes using Whole Life Insurance and the infinite banking strategy so valuable. Because whole life insurance offers you an asset in which you can have access to liquid at any time, it is as good as a savings account – if not better.
Your money is more valuable to you today than tomorrow because of inflation and taxes. If you can leverage your money – and lifestyle security – through an insurance policy, regardless of the unexpected personal economic disasters you may face, then you have awarded yourself with an unbeatable financial platform.
Listen to President and CEO, Patrick Donohoe talk to Rich Dad Advisor, Andy Tanner on The Wealth Standard Radio Show, to learn how everyday people can fight the battle against obstacles that keep them, as income-earners from true wealth.