[quote=AN]I understand what net worth and median mean. But, I’m still surprised that many people are spending more than they make.[/quote] I see your point, AN. People should save more, but so many are buried by credit card debt and student loans… and this is by choice, I might add. If people didn’t throw their money away on silly gadgets and consumer items, they’d have a far better financial situation.
The latest TIME magazine issue has a sob story about how we’ve become a less socially mobile society. As an example, they give the case of a 24-year old schoolteacher who earns $24K a year, but has over $35K in student loans, and is therefore “forced” to live with her parents to make ends meet.
Teaching is a noble profession, but it shouldn’t be done at the expense of your financial wellbeing. In this particular case, incurring debt to pursue a teacher’s degree was a lousy investment. Had she been smarter about it, she would have gone to state college in her hometown, stayed with her parents (to save on room and board), and pursued a degree in business.
She could have zero debt, income in the $50K+ range (or substantially more), and savings. But she chose not to.
