JW’s Financial Coaching Podcast Lesson #117-Don’t Be Average 2016 Edition

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  • The average US household financial stats
  • What these stats say about your economy
  • What to do to be better than average
  • Motivation to not be financially average
  • Quote of the lesson from Steve Siebold

The JW’s Financial Coaching Podcast_117

When I first started the blog and the podcast, one of my most popular posts that gained some traction was the Don’t be Average blog post. In this post I shared some average financial statistics on income, debt, and savings which I tried to paint a picture that the average financial situation in America isn’t all the great. Since the original post back in 2010 I updated it for 2011 and did one of my original podcast lessons on the same topic.

But I realized I hadn’t had an updated version since 2011 so on today’s lesson we’re going to cover the average financial stats in America for 2016. Among some of the statistics discussed in the show:

  • The Median Household income is $53,657 [1]
  • 38.1% of households that have a credit card have a balance at the end of each month with an average debt of $16,000[2]
  • The average car payment is now $503(!) over 68 months[3]
  • The average car lease payment is now $400 [4]
  • 2016 college graduates had an average student loan balance of $37,000[5]
  • For all households that have a student loan, one in seven, the median balance is $13K[6]
  • The savings rate is currently 5.3%[7]
  • 50% of Americans would have to borrow or sell something to pay for a $400 emergency[8]
  • 1 in 7 Americans have a negative net worth [9]

We go into depth more on each stat and explain why these are troubling statistics.

But we also explain why it can be used as motivation to get out from under the rut of being at or below average and what you can do to having a good personal economy.

This is just a great reminder that we can’t go through life taking advice from “He said, I heard, and everybody does.”

Other resources mentioned in today’s show

Today’s quote of the lesson is brought to you by Audible.com

“Average People live beyond their means. Rich people live below theirs. ” ~ Steve Siebold

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[1] http://www.deptofnumbers.com/income/us/

[2] http://www.valuepenguin.com/average-credit-card-debt

[3] http://www.cnbc.com/2016/06/02/us-borrowers-are-paying-more-and-for-longer-on-their-auto-loans.html

[4] http://www.cnbc.com/2016/06/02/us-borrowers-are-paying-more-and-for-longer-on-their-auto-loans.html

[5] https://studentloanhero.com/student-loan-debt-statistics-2016/

[6] https://www.brookings.edu/research/the-typical-household-with-student-loan-debt/

[7] http://www.tradingeconomics.com/united-states/personal-savings

[8] http://www.federalreserve.gov/econresdata/2014-report-economic-well-being-us-households-201505.pdf

[9] http://www.whig.com/20160808/household-debt-concerns-economists-lenders#

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