Does it seem to you that there is always more month than money? This is the the standard state of affairs for most middle income families in North America. There is a reason for it.
Why is there More Month than Money?
Have you ever heard about the old adage, “Go to School, get good Grades, graduate, and get a good job”? I did. I heard it from my parents. You know what, to them, it was true. There was a time when that advise actually had some relevance. Companies were big. Everyone had a pension. They worked for the company all their lives (40 
years), and the company took care of them with an indexed pension until they finally kicked the bucket. About 40 years ago, this wasn’t much of a problem for the corporations because the average working person died after about 3 years of retirement.
You see, this plan educates us that we are supposed to make so much money and have some left over. That left over money is supposed to pile up in a corner. We’re supposed to use the left over money to buy all the things we ever wanted – New cars, a house, take a cruise. That’s how the program was supposed to work. So here’s the big question……
How’s your pile of money coming?
Do you have all that extra money in a pile in the corner of your living room? Perhaps you’re finding that your pile of money is non-existent. As a matter of fact, maybe you don’t have a pile of money, you have a hole of debt. You’ve lost hope. All those things you had planned and dreamed of seem so far off. How are you going to afford them? So you decide to buy that car anyway – on payments. You decide to take the vacation – on credit. You buy that home – with only 5% down.
Inflation Impacts your Income
According to the US Census Bureau, the median household income in the United States has stalled. In 1967 it was $6,155. According the rule of 72 which determines how long it will take to double your income, if the average inflation rate over the first 30 years was about 7.2%, your income should double 3 times to $49,240 in 1997. The actual median income was only $36,477 in 1997. As of 2014 that median income is only $53,013. Even if you allow for 3% inflation since 1997, it should be close to $100,000 by 2017. I remember when I graduated from University (College) in 1988, the starting pay was $28,000. My daughter just recently graduated 25 years later and guess what her starting salary was – $35,000. Wait a minute. Shouldn’t it be at least double? According to the rule of 72 if inflation was only 3% averaged over the last 25 years, her starting salary should be $56,000. 
This is the real reason your pile is non-existent. We are now earning less, in real dollars, than we earned in the 1960’s. Houses cost more, cars cost more, food costs more. Since 1999 the actual inflation adjusted median household income has dropped from $53,252 to $49,445 in 2010 – Ouch!
This is why you have more month than money. So what do you do about it.
Stop buying into the old system
Going to college has no correlation to your income. If you doubt me, just go to the local Starbucks or cell phone store and ask the person behind the counter, “what’s your degree and where did you go to school”.
Become your own boss
The only way to keep up with the ever increasing cost of living is to create your own economy by starting your own business. Notice I didn’t say get a second job. That will only burn you out and you will never make enough money to keep up.
Leverage
Find a way to leverage your time and efforts. Don’t just become a self-employed painter or carpenter. You have find a business that will allow you to leverage your time and efforts. The best options for this are businesses with systems: like a franchise, or a network marketing business.
The good news is, if you’re willing to open your mind, and your willing to even consider some alternatives that may not be in your comfort zone, you don’t have to settle for the "hole" of debt. You CAN create a pile of extra money, keep your dreams alive and eliminate the "More Month than Money" problem.
Get Wealthy,
Wealthy 'n Free Academy
