Worthless Dimes

Ever walked out of a store with all the excitement of buying your new seasonal wardrobe and got home just to open your credit card bill and regret every single dollar you’ve just spent?  Don’t worry, you’re not alone. A recent study by Ohio State economics professor, Lucia Dunn shows most young americans 18 -34 will now DIE with some form of credit card debt. Not only that, they’re paying off their debts much slower than ever before. Inflation, not finding work, and the more acceptable notion that credit is safe is all playing a factor. On average, Americans born post 1980 now owe more than $5,700 dollars more than those born between 1950 and 1954 during the younger years of their lives. $8,200 more than Americans born between 1920 and 1924 during their younger years. Sad part is, this just includes credit card debt, and not debt incurred by the rising cost of college education throughout the country, which now leaves the average student with a whopping $27,000 bill meeting them at the other side of the graduation stage.

Dunn states,

“If what we found continues to hold true, we may have more elderly people with substantial financial problems in the future.Our projections are that the typical credit-card holder among younger Americans who keeps a balance will die still in debt to credit-card companies.Credit is more readily available now, and there have been changes in interest rates and less stigma attached to having credit-card debt, which may all make younger people today more willing to go into debt.If our findings persist, we may be faced with a financial crisis among elderly people who can’t pay off their credit cards.”

Nonetheless, we have to consider what life may be like for those 18-34 down the line. With most spending about $100 more than they can afford per month, debt is going to be a bullet that the majority will not dodge. We have to be smarter with our investments and tighter with our frivolous spending. Just for fun, let’s take a look at what the money from that quick session of retail therapy could have bought you…..

Here’s what those Jordans could have bought you:

Wholesale to Retail

1 out 5 individuals who own a personal cellular device uses the ever popular iPhone. Get your hustle on! Everyone hates being on the go with a dying cell phone battery. Powerglider and Meridian now offer rechargeable cases for iPhone 4 and 5. If you’re the “hustler” type, Amazon.com offers these cases for bulk purchase. At $200 for 10 cases, if you sell your lot for $40/case you’ve just doubled your profit and saved a dying cell phone in the process. With iPhones covering 20% of the cell phone market,  flipping these pocket boosters shouldn’t be that hard even for the most novice hustler.

Here’s what those Louboutins could have bought you:

Stock

While most of us don’t pay too much attention to the market, stock is a great way to learn, invest, and make money off of today’s trends without a lot of leg work. While it can be high risk, stock not only allows you the opportunity to have ownership in a company, you participate in it’s earnings as well. The $800 you spent for those glistening red bottoms could have bought you some ownership in the organization. That way, when others go wasting spending those worthless dimes ( not you because you’re smarter than that) because they wanna feel special when  “Long hair red bottoms” comes on in the club, sells go up, and your stock (pockets) does to. With luxury sales on the rise since 2010, this is sure to be a positive and fun investment. If you don’t like the idea of wrestling with the “bulls” just yet, check out penny stocks. Some consider them high risk but aye, so is a “Sex on the Beach” spilling on those brand new red bottoms… #justsayin