The most vital Financial Planning Information deals with the attitude surrounding wealth. The average American household has over $8,000 of credit card debt, up from $3,000 in 1990. According to Cardweb.com, the average American has 2.7 bank credit cards, 3.8 retail cards and 1.1 debit cards. An $8,000 debt at 18% interest would take over 25 years to repay, making the average minimum monthly payment. On average, the total cost with principal and interest would be an astounding $24,000!

Unfortunately, Americans have been turning to the equity in their homes to get out of debt. Low interest rates on mortgages in addition to a tax code that encourages consolidating debt into mortgages, has encouraged the trend toward using home equity to support spending to maintain a certain lifestyle.

Eventually this strategy will have terrible consequences. Generations of Americans could reach retirement age without hope of ever paying off their mortgage. According to the U.S Census bureau's American Housing Survey 2001, over one million homeowners have three or more mortgages on their property. Over two million homeowners have outstanding loans that are equal to or greater than the value of their homes.

Americans work for higher paying jobs or an increase in salary, with the unfortunate belief that with just a bit more cash, they'll achieve financial security. For most Americans, there is little light at the end of that tunnel.

The prevailing issue is our need to compare ourselves to our coworkers, friends, family, and neighbors. H.L. Mencken said, "A wealthy man is the one who makes more money than his brother-in-law!" This phenomenon of human nature has been confirmed by research. The psychologists Kahneman and Tversky have done incredible work in the field of investor behavior. They found that most people prefer to make $70,000 a year while others around them make only $60,000 per year, rather than to make $80,000 per year while others are making $90,000. Perhaps the economic historian, Charles Kindleberger said it best, "There is nothing as disturbing to one's well-being and judgment as to see a friend get rich." Contact Professional Wealth Strategies for the finest financial planning information in Tucson.

Professional Wealth Strategies, 3573 East Sunrise Drive, Suite 119, Tucson, Arizona 85718, (520) 529-3644. Securities and Advisory Services offered through Commonwealth Financial Network, www.FINRA.org / www.SIPC.org, a Registered Investment Adviser. This communication is strictly intended for individuals residing in the states of AZ,CA,CT,HI,MI,OH,OR,TX,UT,VA,WA. No offers may be made or accepted from any resident outside these states due to various state regulations and registration requirements regarding investment products and services.