The Average American, or Average Joe (Josephine), is something we hear a lot about. They have an average amount of credit card debt, an average amount of cars, and average amount of kids, etc. This is all well and good, but averages are, just, well averages. There are people above and people below (duh). But I wanted to figure out how they stacked up to the Average BiggerPockets member. Here are the stats:
Age - Male, 36 | Female, 39
Kids - 2.5 kids
Cars - 2.28 cars per household
Household Income - $53,657 (Male $53,684 | Female $36,151 with Married Couples Averaging $81,025)
Average Home Price - $188,900
Mortgage Debt - $110,000 per household
Retirement Account Balances - ~$63,000 in this age bracket
Vehicle Debt - $26,530
Student Debt - $30,100
Credit Card Debt - $5,747
Note: These figures (with the exception of credit card debt) are for individuals who HAVE these types of loans, it excludes people with no debt, however, I would assume that the Average American owes money on a car or student loans. PM me if you're an auditor and want to verify my numbers.
How do you stack up against the Average American? If you WERE (or ARE) the Average American, what exactly would you do to get into a better financial position by the time this Average American turns 50? How can real estate help Joe and Josephine get to above average?
you will not get any real responses. You are essentially asking people to tell I what they make and keep. With names associated to the details. Won't happen
Well, I'm above average...
My advice for the average American is to eliminate debts on items that do not generate income. Never leave a balance on a credit card from statement to statement. Do not buy new vehicles instead go for slightly used vehicles. Seek to streamline use of your monthly income. This does not mean cutting out things that you love, just reducing the income leakage that everyone has via more thoughtful spending decisions and better tracking of expenses. Doing these things will increase the control they have over their money and allow them to better plan and achieve financial goals.
You always see these "Average American" reports.. they are useless.. Most the income, and people, are on the east or west coast. Buffalo County SD has an average household income of 22k with a state wide average of 50k, while on the east coast, Maryland, it's $76,000. If your anywhere within 40 miles or less of any major city on the east or west coast, your likely clocking 80k-100k+. Middle America is extremely poor.
Great point. I always laugh when I read these "Average ..." (fill in the blank). If the report is that general then the only advice you can give is general. Thus my post above.
Would you like our SSN's as well?
@Peter T. , only if you're above average!
Stacking against the average is highly unproductive.
If you're below average, you gotta work harder
if you're average, you gotta work harder
if you're above average, you gotta work harder.
Find someone WAY above average and start striving for that. Being above average isn't an accomplishment, half of everyone is above average. Nothing to be too proud of.
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