Mortgage Law, Mortgage Modification, and Foreclosure: How Money Works Part III
What do you think the price of a loaf of bread was 40 years ago? The average price for a loaf of bread 40 years ago was .10 cents. Today it is about $2.50. Any guesses what it will be 40 years from now? Over $16! No way you say? Don't you think that's what people would have said 40 years ago if you told them they would be paying $2.50 for a loaf? That's what inflation does and it is going to continue to happen. So again, what does this have to do with consumer debt? The answer is here in part three of my series on winning the money game. You CAN NOT win the money game while you are in debt.
Let's take the same folks 40 years ago. What do you think somebody aged 65, with social security had to save to retire with a meager; but middle class retirement? 40 years ago they could have retired with $75,000 and a social security benefit. But what if you were 25 years old back then and you are getting ready to retire at 65 today? How much would you need along with social security to retire in a meager, yet middle class lifestyle? Today you would need $400,000 and that social security check. Well guess how many people who retire today have saved up $400,000? Less than 10 percent. Guess how many have saved up $75,000? Over 90 percent. Do you see the problem here? People didn't adjust for inflation. Do you know how much you will need in 40 years to retire middle class? $2.5 million! Don't think social security will be there either. So are you ready to do something about that debt?
