The US populace has become addicted to consuming (= buying “stuff”). We buy a lot of “stuff” that we don’t need – because it’s cheap, it’s available, and just because we CAN. It is easier than ever to buy things thanks to the rise of online shopping. Americans buy over twice as much clothing and footwear and three times as much furniture now as they did in the 1990’s.
Americans are literally drowning in their “stuff” and the resulting credit card debt. One result is overflowing basements and rented storage units. Self-storage continues to be one of the fastest growing businesses in the US. A storage unit costs on average $151/month ($1800 annually) and people end up renting them for years.
The biggest costs of accumulating stuff are often not measured in dollars. Couples have to postpone moving in together, unable to afford a big enough place to accommodate their combined belongings. Once they are cohabitating, tensions arise over clutter and spending. Older adults looking to downsize are often horrified by the volume of stuff they have to get rid of. Emptying aging parents’ homes and dealing with their stuff can be a huge stressor on middle-aged offspring.
Our consumption obsession has driven the US Personal Saving Rate to under 4% from 12% in the 1970’s. Many people are living paycheck-to-paycheck with high credit card debt and no savings for emergencies. This is unhealthy in so many ways.
So how can America transition from its “get it now!” instant gratification mentality to a healthier one of NOT buying every single thing we think we want or need and instead putting money aside for the future? How do we learn to enjoy living within our means?
I have just the solution! See my “Financial Independence” series to learn more.