The New American Dream: Financial Security

Homeownership has always been the heart of the American Dream. But is that really the dream of most Americans? If we take a moment and a step back from the preconceived notions we were raised with, we would all agree that financial security and quality of life is far more important than any possessions. 

Enam and Carlin were taught that renting a home was throwing money away. There are a lot of things that come along with owning a home: mortgage, insurance, and taxes are what most people calculate. But the hidden costs of maintenance, especially with an older home can eat into your savings and drive you deeper into debt. Depending on your stage of life, location, and economic status, home ownership may not make sense. If owning a home isn’t getting you closer to financial independence, then is the dream really worth it.

 
 

Higher Tuition Costs Means Planning for College

Many parents are prioritizing their children’s education a priority over ahead of their own retirement. While this is noble, remember one can take out loans for schooling but NOT for retirement. Parents need to prioritize their financial security for retirement, but how can they do so while ensuring their children's future is set up for success. Early planning for college can help offset the loans one would have to take.

Students can and should be encouraged to take Advanced Placement (A.P.) classes in high school. These classes can be transferred directly to college units. Some students are actually able to shave over a year off the time they spend in higher education and thus save themselves thousands of dollars. Many community colleges offer free classes to high school students, which also count towards their eventual class load. 

There are organizations that help students identify and submit for grants and scholarships that can also bring the overall cost down. When searching for scholarships, many students apply for the large dollar amounts which are highly competitive. Consider applying to many smaller grants and scholarships which are less competitive. Winning a few smaller grants can add up to more in the long run and help reduce the cost of college.

Knowing Your Worth at Work

Finally, the easiest way to be able to get out of debt, afford your preferred housing, and help your kids pay for school is to make more at your current job. As the old adage says, “You can get if you don’t ask.” Well, it’s also hard to ask for what you’re worth if you don’t actually KNOW what you’re worth. While everyone’s value as an employee is obviously different, you can see what others in similar positions are making by going to. Take a look at what your industry is paying for what you do and you can then be better informed when you talk to your boss about the possibility of getting a raise. And if you don’t get what you think you deserve, it might be time to update your resume and get out there and find another organization that will properly appreciate the skills that you have to offer.

Financial security can be a reality with careful planning. All you need to do is understand your own plan and stick with it to reach your financial goals.

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