Moneymoneypoorsavingshabits

Sun Oct 9, 2016, 12:16 PM

Nearly 7 in 10 Americans have less than $1,000 in savings

The U.S. is often referred to as the land of economic opportunity. Apparently, it's also the land of consumption and "spend everything you've got."

We don't have to look far for confirmation that Americans are generally poor savers. Every month the St. Louis Federal Reserve releases data on personal household savings rates. In July 2016, the personal savings rate was just 5.7%. Comparatively, personal savings rates in the U.S. 50 years ago were double where they are today, and nearly all developed countries have a higher personal savings rate than the United States. In other words, Americans are saving less of their income than they should be — the recommendation is to save between 10% and 15% of your annual income — and they're being forced to do more with less in terms of investing.

However, new data emerged this week from personal-finance news website GoBankingRates that shows just how dire Americans' savings habits really are.

Last year, GoBankingRates surveyed more than 5,000 Americans only to uncover that 62% of them had less than $1,000 in savings. Last month GoBankingRates again posed the question to Americans of how much they had in their savings account, only this time it asked 7,052 people. The result? Nearly seven in 10 Americans (69%) had less than $1,000 in their savings account.


http://www.usatoday.com/story/money/personalfinance/2016/10/09/savings-study/91083712/

It doesn't specifically mention other investments but I suspect "savings" is meant to include any source of money that can be quickly converted to cash...

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Reply Nearly 7 in 10 Americans have less than $1,000 in savings (Original post)
Gamle-ged Oct 2016 OP
Docbroke Oct 2016 #1
Model10RB Oct 2016 #2
spike61 Oct 2016 #3
WhiskeyMakesMeHappy Oct 2016 #4
Gamle-ged Oct 2016 #7
WhiskeyMakesMeHappy Oct 2016 #8
exindy Oct 2016 #5
Myriel Oct 2016 #13
exindy Oct 2016 #14
Big Kahunna Oct 2016 #15
JeffJenk Jan 16 #16
Squeek Jan 17 #18
DoDaMan Oct 2016 #6
Badsamm Oct 2016 #9
Jack Burton Oct 2016 #10
Bubba Oct 2016 #11
Gamle-ged Oct 2016 #12
JeffJenk Jan 16 #17
Bubba Jan 17 #19

Response to Gamle-ged (Original post)

Sun Oct 9, 2016, 12:27 PM

1. I have a savings account that has $150 in it.

Guess I am on of the 7 of 10.

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Response to Gamle-ged (Original post)

Sun Oct 9, 2016, 12:37 PM

2. My car needs a repair that I cannot do myself.

Rear wheel bearings. 175,000 miles. 15 year old car.

I don't want to open the rear differential myself.

So I will have a mechanic do it.

Most likely $200 to $300 plus parts, which I bought online to save about 50 bucks.

I am in emotional crisis right now (jokingly of course) that I have to spend money.

You have to be a cheap bastard in order to survive in today's world, with all the temptations around.

I also have not been in debt in 10 years and have enough to retire on comfortably.

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Response to Gamle-ged (Original post)

Sun Oct 9, 2016, 12:55 PM

3. Too many keep trying to "keep up with the Jones's"

And yes, spend whatever they make. Even many who are doing well do it. Its the problem of TV showing all these idiot "reality" shows where everyone lives in mansions and have great cars and vacations. So everyone else thinks THEY should have the same

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Response to Gamle-ged (Original post)

Sun Oct 9, 2016, 12:57 PM

4. Everyone should have a min of 3 months cash reserves in their safe at home.

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Response to WhiskeyMakesMeHappy (Reply #4)

Sun Oct 9, 2016, 02:01 PM

7. Or safes...

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Response to Gamle-ged (Reply #7)

Sun Oct 9, 2016, 04:19 PM

8. LOL, they do tend to multiply don't they?

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Response to Gamle-ged (Original post)

Sun Oct 9, 2016, 01:07 PM

5. 15% of the people are below the poverty line.

They need all their income to survive. They aren't buying the latest iPhone.

The next 25% are struggling. They don't have the extra 10%-15% to put into savings.

That bought clothes for the kid to go to school.

Maybe they're not saving the extra money cause they have no extra money.

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Response to exindy (Reply #5)

Mon Oct 10, 2016, 09:48 PM

13. That only gets you to 40% of Americans

Even then, I don't buy it.

I travel. When I do, I often get gas in poor, rural towns. I see plenty of people in the groups you mentioned finding money for beer, cigarettes, and lottery tickets. That's all money that could be used for savings but isn't.

I'm not saying that it is easy for everybody, but most people don't try very hard. Many countries much poorer than the US have much higher savings rates. Many people here just don't seem to be able to think long term anymore.

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Response to Myriel (Reply #13)

Tue Oct 11, 2016, 07:24 AM

14. I bet you must see 100, maybe 200 people

when you travel, and often in poor rural towns. I bet you must see 10, 20 gas stations in those poor rural towns close to the interstate.

Why hel that changes everything.

And then you deciding that even much poorer countries do much better than us.

As if that is supposed to make somebody living in a shack in the richest country in the world feel guilty?

IGMFY

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Response to Myriel (Reply #13)

Tue Oct 11, 2016, 07:58 AM

15. I am always amazed how many people never think about tomorrow, only today

I offer my employees a 401k option with a very generous match. I stress how important it is to start saving early, even if it is only 3 or 4 percent, but some say they can't afford it.

Then they go out and lease a new car or buy the newest IPhone.

They spend a couple hundred dollars on Sunday for tickets, concession stand items and parking to go see the Bucs play. But they are always broke and have no savings.

I have one woman who one day is complaining how she has no money in savings and then two days later is talking about getting a boob job.

You try to help people but they need to understand that they must delay gratification if the want to get ahead.

In life you need one of three thing;... a plan to get ahead,... an excuse,... or someone to blame.

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Response to Big Kahunna (Reply #15)

Mon Jan 16, 2017, 12:46 PM

16. YEs. Working people should not be allowed to spend the pennies they earn however they want to. The

 

privilege is reserved for the "good" people who rightfully make more money.

Worst part is the conservatives just do not care about others, except to control their lives to prevent "those" people from enjoying the same "freedoms" reichists reserve for themselves. Their utter glee at denying medical care, quality education, and a fair justice system to others betrays their true, deplorable instincts.

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Response to Myriel (Reply #13)

Tue Jan 17, 2017, 12:21 AM

18. One of the good things

about not smoking or drinking or buying lottery tickets or going on vacations

I see plenty of people in the groups you mentioned finding money for beer, cigarettes, and lottery tickets. That's all money that could be used for savings but isn't.


Is that we have money to put away in savings after paying the bills.

I did a quick search and discovered that Mr Squeek and I, even on fixed incomes, have about $13,000 ready cash between all our savings accounts.

In addition, he has a couple of credit cards with over $20,000 credit limits total, my own personal credit cards have a credit limit of $13,000 total between them.


It's so much less stressful to be married to someone who shares a similar spending/saving philosophy, especially when I see other couples where one is a saver and the other one loves to spend, spend, spend.

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Response to Gamle-ged (Original post)

Sun Oct 9, 2016, 01:49 PM

6. According to democrats you are an absolute loser if you are in this situation.

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Response to Gamle-ged (Original post)

Sun Oct 9, 2016, 04:54 PM

9. Why do you think the establishment fears for their existence.

They need to keep the game going or its going to get ugly fast.

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Response to Gamle-ged (Original post)

Sun Oct 9, 2016, 05:02 PM

10. So would this be the 'hope' or the 'change'

after 8 years of Obama?

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Response to Gamle-ged (Original post)

Mon Oct 10, 2016, 02:53 AM

11. Many Americans Don't NEED Savings.

Those of us who work would face a true crisis if our income stream stopped. Whatever the reason - Medical issues, labor dispute, sudden termination, drop in business - Loss of that paycheck might mean loss of home, loss of family, loss of self-respect. Not to mention the crushing stress and uncertainty that would accompany it.

But people on welfare have no such worries. Their SNAP card, along with free housing and medical care, will keep rolling in, month-after-month, year-after-year. All they have to do is vote for Democrats. And if finances get a little tight, pump out another baby. Problem solved!

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Response to Bubba (Reply #11)

Mon Oct 10, 2016, 09:02 AM

12. There is that. Reminds me of Nancy Pelosi, who said, when more and more people were being reduced..

...to a 30 hour work week because of the extra ObamaCare costs to employers, "This will give them more time off to do the things they want!"...

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Response to Bubba (Reply #11)

Mon Jan 16, 2017, 12:49 PM

17. I challenge you and any regressive to try and live for a year on those "over-generous" benefits you

 

on the right always complain about. You would not last one month.

Of course, maybe you are thinking about living on the truly obscene corporate welfare that hands more of our tax dollars over to those who do not need it than all the social programs combined.

THOSE parasites do live high on the hog, and charge the costs to us taxpayers.

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Response to JeffJenk (Reply #17)

Tue Jan 17, 2017, 02:42 AM

19. You Put "Over-Generous"

In quotes, as though I had written those words.

As for me, my biggest expense is rent. If that were cut in half, I suspect I could survive on government handouts.

'Course, it might be hard for a single male to get any benefits from any government agency. I really don't know. Hope I never have to find out.

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