The U.S. economy reached another milestone last week, which went almost entirely unnoticed by much of the country. The U.S. debt level reached $21 Trillion. The fact that we have achieved this level of debt is only outdone by the rate in which the debt is increasing.
US Debt Rises Even In A Strong Economy
It was only last September that we cleared the $20 Trillion level. That’s right, in a little over six months, we have increased the debt level of this country by 5%. What really makes this worrisome is that this is occurring at a time when the U.S. economy is performing at its best in over a decade. If you want to see a scary website, check out www.usdebtclock.org. (Note: look at it on a laptop or a desktop, it doesn’t show well at all on a mobile device).
What’s The Concern For?
Why should this concern each and every one of us? Remember that this is the same federal government that promises to take care of us in our old age with Social Security payments. The bigger the debt level, the more difficult it will be for the government to keep making (and increasing) Social Security payments. Additionally, higher interest rates mean that the government is going to have to pay more in the future to borrow money. This means the deficit will likely increase at an even faster pace moving forward.
How To Avoid Living Off Social Security
According to the Social Security Administration, the average Social Security check in February 2018 was $1,291.46. That’s an annual run rate of $15,497.52. Do you want to have to live on less than $16,000 per year? That’s why Daniel’s first rule of financial living (You and you alone are responsible for your financial future) is important. The more money you can save today, the more you will have when you are ready to retire so that you don’t have to rely on the government for your sole source of income.