America's Debt Problem

Many of us learned this lesson the hard way... [Wealthy Retirement]( SPONSORED [SHOCKING: $100 Billion Surging Into the 5G Market]( [Closeup $100 Bills]( What do Verizon, AT&T, T-Mobile, Dish Network, Charter Communications and Comcast have in common? According to Barron's, they're all participating in "secret bidding" to secure as much as $100 billion worth of 5G spectrum. The big winner in all of this frenzied spending? This little-known tech stock, which trades for less than $20 a share. [Get the scoop here...]( [FINANCIAL LITERACY]( The Facts Behind America's Debt Problem Jody Chudley, Contributing Analyst, The Oxford Club [Jody Chudley] When I think about how I built a successful career and put myself in a comfortable financial position, it is clear to me the role my parents played. They helped pay for my university tuition, making it an easy decision for me to pursue a secondary education. They also let me live at home while I went to university. That further eased my financial burden and let me focus on my studies. And they were excellent financial role models. Most importantly, they taught me to [never live beyond my means](. That saved me from digging a debt burden for myself early in life that was hard to get out from under. A good friend of mine was not so lucky. Everything I had, she didn't have. She had next to no support from her parents. There was no help financially for school. Once out of high school, she was expected to get a place of her own to live in. As financial role models, her parents could not have been worse. They lived big and saved little. Sent out on her own with no financial guidance, role model to emulate or financial assistance, my friend did what many young people do... She moved away from our hometown, and instead of adjusting her lifestyle and living within her limited means, she did the opposite. She started enjoying life. And in the process, she rang up credit card bills that became impossibly big for her to handle. With her never having much money, when she got her first credit card, it felt like she had won the lottery. For her, it meant she could buy everything that her heart desired. She wasn't being greedy - she was just a kid who didn't know any better. By the time she learned how ruinous the 20%-plus interest rates on credit cards could be, it was too late. She had dug a financial hole that she couldn't escape. I'm gutted thinking about it. I was on the other end of the telephone more than a few times after she realized that she was trapped. The happy, optimistic person I knew was gone. It cost her the ability to pay for university. It unquestionably changed the course of her life. It was sad to watch because she was hardworking and smart. The only difference between her and me was that I had been blessed with parents who helped me out and were great financial role models. I sent her some money a couple of times to help, but my pockets weren't deep enough to make a difference. If I could go back in time, I would send more. I didn't know how inescapable the hole was that she was in. I haven't talked to her in years, but I fear she lives a life full of regret. She had plans for a career and the smarts to achieve it. It doesn't seem fair that 18 months of financial foolishness at a very young age destroyed those plans. Had just one person taught her the dangers of credit cards before it was too late, her life would have been completely different. SPONSORED [Bill O'Reilly's Back! (But Who's His Co-Host?!)]( [BOR and ? Co-Host]( [You'll be SHOCKED when you see the guy Bill O'Reilly teamed up with for his new project!]( Uncle Sam Has Also Gone Down a Dangerous Path I thought of my old friend when I saw the chart below. The chart compares the amount of income that the United States federal government brings in with how much it spends. [Chart - U.S. Federal Spending and Income]( The chart shows how, relative to the past half-century, the degree to which the federal government has outspent its income over the past year is staggering. From 1982 to 2005, the federal government pretty much lived within its means. With the financial crisis in 2009, spending started exceeding income by a pretty wide margin. But what has happened since the outbreak of the pandemic last year has taken things to a whole new level. Last year, the U.S. government collected $3.42 trillion of revenue. It spent $6.55 trillion. The country has lived more than $3 trillion beyond its means. Now, I'm not criticizing anyone. I don't know what the perfect solution to an unexpected pandemic is. What I do know is this... My friend learned the brutally hard way that there are consequences for spending far more than she was bringing in. Let's hope the consequences for the U.S. government doing the same thing aren't as severe. Good investing, Jody [Leave a Comment]( MORE FROM WEALTHY RETIREMENT [The Highest-Yielding Stocks With Insider Buying]( [Avoid Companies That Take Liberties With Your Capital]( [Keep Your Eyes on the IPO Prize]( [Facebook]( [Facebook]( [Twitter]( [Twitter]( [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AMany%20of%20us%20learned%20this%20lesson%20the%20hard%20way...%0D%0A%0D [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AMany%20of%20us%20learned%20this%20lesson%20the%20hard%20way...%0D%0A%0D SPONSORED [(Now Available): Pre-IPO Shares in Tech's Biggest Story of 2021]( [Initial Public Offering]( One small company is about to disrupt a $1 TRILLION market... It's set to IPO just months from now. You CANNOT buy this company's shares on the NYSE or Nasdaq today... [Yet we've just uncovered an easy "backdoor" way to get in RIGHT NOW.]( [The Oxford Club]( You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. [Privacy Policy]( | [Whitelist Wealthy Retirement]( | [Unsubscribe]( © 2021 The Oxford Club, LLC All Rights Reserved The Oxford Club | [105 West Monument Street](#) | [Baltimore, MD 21201](#) North America: [1.800.589.3430](#) | International: [+1.443.353.4334](#) | Fax: [1.410.329.1923](#) [Oxfordclub.com]( The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. We expressly forbid our writers from having a financial interest in their own securities recommendations to readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of printed-only publications prior to following an initial recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, 105 W. Monument Street, Baltimore MD 21201.