Why do more people file bankruptcy now more than ever? Even when they earn more than ever before?
One, the proportion of housing price to total income has increased; we’re paying more for our houses.
Who buys these houses? Families with children – meaning in an effort to send their kids to better public schools, we have engaged in a bidding war to buy homes in the best school districts.
Solution: create a voucher system where any student, living anywhere can get a fully funded voucher to attend any school, anywhere based on merit.
– Create a public preschool system, rather than a voluntary, paid preschool.
– College tuition is increasing at a ridiculous rate. Implement a tuition freeze?
– Although we spend more on a second car, these cars last longer and are safer than older ones. There is no need for the Suburbans.
Since middle-class families do not have a government-funded “insurance” policy or welfare safety net, the self-imposed insurance policy is a stay at home parent. This “part-timer” can come in from the bullpen if needed to work when the other isn’t and provide for the kids when the other parent is working.
– live well below your means, especially when it comes to your mortgage; however, these “sensible” purchases like houses, education, and health insurance require extremely long-term financial commitments that cannot easily be backed out of.
– have a healthy savings/emergency fund account
– buy that extra disability insurance
Why are so many credit card home offices based out of South Dakota or Delaware? Because they can charge any interest rate they want and dole out cards to any people regardless of their financial standing.
-avoid credit card debt
-avoid subprime mortgages