The Wall Street Journal published an article last year that outlined the number of bank overdraft transactions in 2016. The total tally?
That is billion with a B.
To be clear, that is the amount of just the transactions NOT the associated fees. Assuming the average overdraft fee is $40, that equals $44.8 billion in overdraft fees.
That is foolishly GIVING money away, folks.
Another way Americans like to give away money is via credit card interest. In 2016, Americans carried nearly $800 billion in credit balances which cost approximately $65 billion in interest. (Those figures have moved up in 2017).
That is over $100 billion dollars
between overdraft fees
and credit card interest
that Americans paid in 2016.
What could you do with $100 billion? Here are a few ideas:
- Purchase every sports franchise from any of the four major sports (every single NFL team or every single NBA team and so on)
- You could out-produce the economic output of 149 countries
- You could buy Warren Buffett – and have enough left over to buy any one of the Walmart heirs
- You could very cautiously invest it and spend $250 million each month for the next 50 years….and still have about $15 billion left over
Let’s be wise and stay FAR away from these leaks.
If we stop throwing money away, imagine what could be accomplished in so many lives with purposeful money planning.
Because The Wealth Group, Austin B. Colby & Associates is independent of Raymond James, the expressed written opinions above are our own and not necessarily reflective of Raymond James’ opinions.