Why Ignoring Investments and Relying on Credit Card Debt Will Keep You Poor

📉 The Shocking Reality: 48% of Americans Have No Investment Assets

This number might shock you. 48% of Americans don't have any investment assets at all. This is a huge mistake because if you truly want to get ahead in our generation, money needs to be invested, not just saved.

🔥 Why Saving Alone Isn't Enough

Having money just sitting in a checking account is literally the same as lighting money on fire. Why? Inflation.

According to the Federal Reserve, the average pace of inflation is about 2-3% per year. (The past couple of years have been crazy, but historically, it's 2-3%.) What does this mean?

The Value of a Dollar Over Time

If you held a $1 bill for 365 days:

After one year, it's still $1
But its purchasing power decreased by 2-3%
In other words, your money lost value

The most important thing for savers is not just to keep up with inflation through investments, but to exceed it.

📊 Saving vs. Investing: The 40-Year Difference

Let's say you got a well-paying job and managed to save $100 per month for 40 years.

Just Saving

After 40 years: $48,000
Not bad at all, right?

Investing in Index Funds

Same $100 per month invested in an index fund tracking the S&P 500
After 40 years: $500,000+

Method	Amount After 40 Years
Saving Only	$48,000
Index Fund Investment	$500,000+

Same amount, same time period, but the result differs by more than 10x.

💡 Investing Is Way Simpler Than You Think

I've been in your shoes. In my 20s, I looked into day trading, forex trading, penny stocks, IPOs... I tried it all.

But let me be honest with you: that's all garbage. Seriously.

For regular people like us to succeed in investing, what we need to do is ridiculously simple:

Buy index funds that track the S&P 500 or the total stock market
Invest consistently
Sit on your hands and don't touch it
Get rich

That's it. Really, that's all there is to it.

What You DON'T Need to Do

❌ Read financial statements
❌ Listen to earnings calls
❌ Analyze technical charts
❌ Watch CNBC or CNN Money

All of that is marketing designed to take money from you through fees.

For 99% of people, all you need is this:

Buy index funds. Sit on your hands. The US stock market historically goes up and to the right.

🏦 Don't Ignore Your Retirement Accounts

Retirement accounts are tax-advantaged:

Either save on taxes today
Or save on taxes when you retire

And if your employer offers a 401k match? Take that money!

Company matching = 100% return on your money
You won't find a guaranteed return like this anywhere else

💳 Bad Money Habit: Unknowingly Relying on Credit

I know, it's ironic coming from someone who's always preaching about credit cards. But I can't ignore the fact that nearly 48% of Americans are in some sort of credit card debt.

A Personal Story

My dad came to the US as a graduate student. He didn't know much about credit cards and ended up in debt. The result?

Every time we needed a home loan or car loan, we always had to apply using my mom's credit
As a kid, I just thought "Mom has better credit"
The truth was my dad's credit wasn't good

Credit card debt affects the entire family's financial future.

⚠️ Why Credit Card Debt Is Dangerous

A $1,000 credit card balance with minimum payments seems fine, right? You'll eventually pay it off.

But that $1,000 could be hit with over 20% interest rates.

When Used Correctly

Credit cards are amazing tools:

Cashback rewards
Travel miles
Various protections

But that only applies when you use them wisely.

✅ How to Escape Credit Card Debt

1. No Cash, No Purchase

If the money isn't in your checking account? If you can't pay for it with cash? You can't buy it.

No ifs, ands, or buts. No cash, no credit card.

2. Pay More Than the Minimum

If you're already in credit card debt:

Paying just $25 minimum per month is tempting
But that's the biggest financial anchor holding you back
Pay more than minimum to clear it ASAP

3. Pay Full Balance Every Month

If you're using a credit card, you need to pay off the entire balance every month.

Can't do that?

Use a debit card
Use cash

Credit card debt is probably the most manageable debt because it's completely voluntary.

It's not like you got a home loan and lost your job
Credit card debt means: you had a card, bought stuff, now you have to pay
If you take your time instead of paying it off at once, you're crushing your financial future

💡 Key Takeaways

Problem	Solution
Ignoring Investments	Index fund investing + Retirement accounts
Credit Card Debt	No cash = No purchase + Pay full balance

Would you rather have $48,000 or $500,000?

Same amount, same time period. The only difference is whether you invested or not.

And credit cards? They're great tools when used right, but a ticket to financial hell when used wrong. The choice is yours.