Tuesday, October 14, 2008

In Debt

From an AARP article, cited by Leadership Network: The average American household is now buried under mortgage debt of $84,911, car and tuition loans of $14,414, home equity loans of $10,062 and credit card debt of $8,565—in sum, outstanding debt totaling $117,952. According to other Federal Reserve statistics, average household savings this year are a mere $392.

John Wesley's three guidelines for financial planning:
1. Gain all you can (by hard work, not overcharging!)
2. Save all you can (be thrifty and frugal)
3. Give all you can
He took his own advice. By the time of his death, his income and property (he owned the Methodist society meeting places at the time) made him a very wealthy man. But he lived on the same budget he used when he was a young man and gave everything else away.

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