The great wealth implosion
Americans lost nearly two decades’ worth of accumulated wealth between 2007 and 2010. The recession took its toll on all levels of wealth, but the middle class suffered most. The median American family’s net worth was $126,400 in 2007. That dropped to $77,300 in 2010.
The ongoing slump in the economy resulted in job loss and reduced wages, forcing many Americans to dip into savings and retirement funds. Owning a home soon became a burden and retirement was out of the picture for others.
As the economy is slowly showing signs of stabilizing, it will be a long journey for those who were deep in debt or kept their wealth tied up in a home that sank in value. Avoiding debt as much as possible, developing a diversified portfolio and living below your income are lessons that we can all take away from this.