Are you hustling backwards? Are you making decisions that will systemically destroy wealth and place you in a financially dependent situation? Hustling backwards seems to be a favorite past time for many Americans. Many people make decisions that will destroy wealth instead of building wealth.

Debt before Savings

America has become a debtor nation. Debt is easy to come and is very convenient. Debt in the form of credit cards, student loans, and even mortgage debt has been an issue for many Americans. Debt for the purpose of consumption is a bad investment. When one goes into debt they are exchanging future money for current money at a cost. The cost of money is interest. Currently, the interest rate for those with ok credit is 19%. While the highest interest rate for a savings account is 1.10% there is something wrong with this picture. Going into debt and not saving one’s money is hustling backwards. One will never become financially independent going into consumer debt.

Solution: One should begin saving money immediately. A portion of every check should be going into a savings account. Open a high interest rate savings account. Have your funds direct deposited and forget about it.

Consumption before Investing

Consumption seems to be a way of American life. About 40% of the GDP comes from consumer consumption. Consumption became an American mindset as a way to keep the economy growing. However consumption is only short-term. Working hard just to throw money away on useless products is a waste. It is a backward mentality.

Solution: Focus on investing. Instead of always buying products, try investing your money in things that provide a return.

 Job before business

There are currently 15 million people that are unemployed. We have become too dependent on employers for our livelihood. Everyone should have another way of making money outside of a job. The days of spending one’s entire career at one job are gone. One should never think job without thinking of some other form of revenue.

Solution: Stop procrastinating and start a business.

Article first published as Hustling Backwards on Technorati.

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