Financial Clarity Coaching Blog,  Thoughts

Pot Meet Kettle

It’s funny because the politicians calling for a wealthy tax are also part of the uber wealthy.

Average Base salary for Congressmen & Congresswomen is $174k annually. (Fact check that, when you do, I hope you are just as upset as I am). But it’s less about their salary and more about privileged information regarding key investments to make.

I’ll give Bernie a break though because his Net Worth is “only” $3 million. (2020). However, Pelosi’s Net Worth is $315.8 million (2021). No typo. Which by the way, she’s 81 and has been a member of Congress for 34 years. Chris Collins has $154.5 million & Mark Warner with a net worth of $214.1 million. In fact, the wealthiest top 50 members of Congress are double to triple digit millionaires.

If we have politicians who are multi-millionaires, we are doing it wrong.

Average salary for US Americans in 2021 is $47,520 annually with 80% of the US population in debt at an average of $65,448 total of debt. More debt than income is a recipe for financial disaster.

I’m not a betting man, but if you wanted to increase your Net Worth, maybe consider mimicking what the members of Congress do? Ultimately what separates ‘us’ from ‘them’ boils down to investments, leveraging debt for other investments, income producing assets, and last but not least, no consumer liability debt. Probably can make an argument that their base salary being more than double the average salary helps too. Can you compete with them as far as net worth goes? Likely not, but if you minimize your monthly expenses, pay off debts, and invest the rest, you can certainly separate yourself financially from many others.

So maybe a wealth tax doesn’t apply to you directly, but maybe you are working for a corporation or business that does. There is a trickle down affect that occurs and we all pay eventually. The only way to avoid a detriment to your finances is to maximize your income by having no debt and living modestly. Avoiding taxes isn’t possible, but so much of what else you spend money on is avoidable, at least from a liability standpoint.

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