The Forces Working Against You

There are invisible ‘forces’ working against you and your finances that result in you having to working harder and harder just to ‘save a buck!’

To win this battle you must first understand these forces.  Second you must turn the tables on them and either make them work for you or mitigate the damage they are causing to your finances. .

The four negative financial forces we must all overcome.

  1. Bad Debt. Paying interest on ‘bad’ debt is hurting Americans, and in fact, as much as one THIRD of the average American income goes to Interest Payments!  Bad debt is any consumer debt that does not generate income or generate future appreciation of an asset.
  1. Taxes. As much as a THIRD of the average American income goes towards the payment of TAXES! When you add up all the different taxes you pay, income, social security, Medicare, sales, telecommunications, gas, energy, vehicle, and so on, it easy to see how 1/3 of the average American’s income is spent on taxes.

Just with hidden forces 1 and 2 combined, That’s 2/3 of the average American income going to either the government in taxes or a to financial institution in the form of interest.

  1. Inflation. Inflation is a form of tax, and is probably HIGHER than most think it is, and HIGHER than the government tells us it is. In recent years, the U.S. Bureau of Labor Statistics has modified what products it uses to calculate the CPI, for instance, using their substitution methodology, if a family is purchasing steak and the price of steak goes up, it is assumed that the family will start purchasing the lower cost hamburger instead of the higher priced steak.  By using the lower cost substitute, the CPI remains relatively unchanged.  But if the family continues to purchase steak, the effects of the higher price (inflation) are reflected in the families finances
  1. Interest Rates. In many cases low interest rates are good for the economy, however it’s terrible for your conservative investments, low interest rates paid on savings, money markets or bonds might not keep up with the rate of inflation, reducing the purchasing power of each dollar you have.

So what can you do about it?

You can choose to do nothing and continue on your current financial path.


You can choose to understand these forces, how they influence your finances, and find ways to make them work to your advantage, or mitigate them.  The wealthy have conquered these forces; use their success as a model to improve your situation. It starts with financial literacy, and understanding how money works in our economic system.

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