Yesterday I highlighted an article from Money Magazine called Confessions of a Compulsive Shopper. It featured the story of Kristine Rogers, a 36-year-old suburban mother of four who is a shopping "addict" who ran up $50,000 in credit card debt.
What I didn't comment on was the chart to the side of the article that listed the Rogers' net worth. A summary:
- Assets: $19,000
- Liabilities: $77,000
- Net Worth: ($58,000)
Just a few comments on this:
- This is for a couple that makes $102,000 per year. What do you think the problem is -- too much spending or not enough income. I think the answer is obvious.
- While not as bad, these numbers are a reflection of America as a whole. Yes, it's true that most Americans don't have the problem with clothes spending like this couple does, it's also true that many Americans spend well more than what they make. And those who don't spend it all spend almost as much as they make. How else can you explain the low net worths out there today?
- If you don't want to be a statistic like this, start applying suggestions like the ones found at Free Money Finance and other financial sites and blogs. Make a little progress each day and over time, your net worth will grow and grow.
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