Half of Americans are poor, have no savings

[stinkynuts]

Most can't afford to fix their cars.

http://www.alternet.org/economy/half-america-or-damn-near-close-living-poverty


And I bet you things are only going to get worse.


I am single, and have some savings, but no job. Let me tell you, the cost of living is ridiculous. Everything from rent, insurance, gas, groceries, car repairs, has made it so difficult to survive.

I am jealous of those who are making tons of money and can afford to hobby. I used to be able to do that a few times a year, but not anymore.

 

[wazup]

Didn't you start a thread a while back about raking it in?

 

[stinkynuts]

Didn't you start a thread a while back about raking it in?

I was, yes, but not anymore.

In the last few months, I have not had any income whatsoever. This year my savings has gone done about $40,000 because of it.


My peak year was in 2012, where my net income was $135,000, which is a lot for me. Since then I still made some money, but these last few months I have not had any income.

 

[glamphotographer]

I was, yes, but not anymore.

In the last few months, I have not had any income whatsoever. This year my savings has gone done about $40,000 because of it.


My peak year was in 2012, where my net income was $135,000, which is a lot for me. Since then I still made some money, but these last few months I have not had any income.

This because the price of oil dropping?

 

[stinkynuts]

This because the price of oil dropping?

Nope, unrelated.

 

[rhuarc29]

The number of people living paycheck to paycheck is staggering.

I've always kept a healthy cashflow, so it bothers me when people say "I'm going to buy X or Y, but I have to wait for my next paycheck!" I've heard some people on here say they're going to see a lady once they get their next paycheck as well. These statements really bother me, especially when what they're buying is a luxury good. I mean, if you have to wait until your next paycheck to buy something, you really shouldn't be buying it!

Why have people in general lost their financial sense? Do we not teach it adequately? Have financial safety nets made people lax?

 

[waterloodude]

I was, yes, but not anymore.

In the last few months, I have not had any income whatsoever. This year my savings has gone done about $40,000 because of it.


My peak year was in 2012, where my net income was $135,000, which is a lot for me. Since then I still made some money, but these last few months I have not had any income.

You blew through $40k in savings in a few months?

 

[stinkynuts]

You blew through $40k in savings in a few months?

Since January. Basically I have made very little money this year, and have had to pay for living expenses and other things: dental work, major car repairs, travel expenses, speeding tickets, etc.

 

[angrymime666]

to save money these day its about limiting your lifestyle and expenses.

I make what the average single person make. I dont live in toronto, drive a modest car, dont splurge on clothes or take out. I dont go without but enjoy the finer things in life on occasion.

you can live in the moment if you wish, but I also like to save for the future.

 

[explorerzip]

Since January. Basically I have made very little money this year, and have had to pay for living expenses and other things: dental work, major car repairs, travel expenses, speeding tickets, etc.

$40K is still a lot of money to blow in a year. Why did you shoot yourself in the foot like that knowing that you had no source of income? Most if not all of your "other things" can wait until later. And speeding tickets are definitely avoidable.

 

[explorerzip]

The number of people living paycheck to paycheck is staggering.

I've always kept a healthy cashflow, so it bothers me when people say "I'm going to buy X or Y, but I have to wait for my next paycheck!" I've heard some people on here say they're going to see a lady once they get their next paycheck as well. These statements really bother me, especially when what they're buying is a luxury good. I mean, if you have to wait until your next paycheck to buy something, you really shouldn't be buying it!

Why have people in general lost their financial sense? Do we not teach it adequately? Have financial safety nets made people lax?

We live in a capitalist society that is exceedingly good at separating people from their money. Even worse, we're encouraged from a young age to borrow to buy stuff. Forget about Shakespeare, algebra, history, etc. start with books like Rich Dad Poor Dad, The Wealthy Barber, etc.

 

[FAST]

Originally Posted by rhuarc29
The number of people living paycheck to paycheck is staggering.

I've always kept a healthy cashflow, so it bothers me when people say "I'm going to buy X or Y, but I have to wait for my next paycheck!" I've heard some people on here say they're going to see a lady once they get their next paycheck as well. These statements really bother me, especially when what they're buying is a luxury good. I mean, if you have to wait until your next paycheck to buy something, you really shouldn't be buying it!

Originally Posted byexplorerzip
Why have people in general lost their financial sense? Do we not teach it adequately? Have financial safety nets made people lax?
We live in a capitalist society that is exceedingly good at separating people from their money. Even worse, we're encouraged from a young age to borrow to buy stuff. Forget about Shakespeare, algebra, history, etc. start with books like Rich Dad Poor Dad, The Wealthy Barber, etc.

If people would listen to this kind of advise, many wouldn't be falling behind pay check to paycheck.

But if people think somebody is always there to bail them out, the government, mommy, or what ever, only going to get worst.

My parents did NOT run their lives the way the financially irresponsible do today.

Do NOT pay 21% interest on something you can't obviously afford in the 1st place,...is a good start.

I never did try to keep up with the Jones,...I now I live better than the Jones.

FAST

 

[stinkynuts]

Some people are all about keeping with with the Jones. They feel that if they don't, they'll be looked down upon. The truth is, only suckers fall for the trap set by the corporations to make them believe this.

Some examples:

-updating phones every new edition, when reality is that nothing has really changed
-updating your appliances to stainless steel ones, when reality is that there is no difference. White appliances even looks cleaner in a kitchen.
-updating your car to the newest model with design changes, new features
-buying overpriced coffee at Starbucks because it's trendy
-getting $50 haircuts at high end salons when a $20 haircut is fine
-going to expensive restaurants and overpaying for food and wine.
-getting an even large flat screen TV (remember when 32 inches was considered big?)
-sending your kids to private school to keep up appearances and separate yourself from the lower classes.
-flying first class instead of business or economy


Some of these things may be debatable. Maybe shelling out $25,000 for private school is a good investment because the school is excellent and public school is crap. For me, I could never afford that kind of money. Even if I could, I would not pay that much.

I noticed Americans are very careless with their money. They especially are extremely generous tippers.

 

[explorerzip]

Some people are all about keeping with with the Jones. They feel that if they don't, they'll be looked down upon. The truth is, only suckers fall for the trap set by the corporations to make them believe this.

Some examples:

-updating phones every new edition, when reality is that nothing has really changed
-updating your appliances to stainless steel ones, when reality is that there is no difference. White appliances even looks cleaner in a kitchen.
-updating your car to the newest model with design changes, new features
-buying overpriced coffee at Starbucks because it's trendy
-getting $50 haircuts at high end salons when a $20 haircut is fine
-going to expensive restaurants and overpaying for food and wine.
-getting an even large flat screen TV (remember when 32 inches was considered big?)
-sending your kids to private school to keep up appearances and separate yourself from the lower classes.
-flying first class instead of business or economy


Some of these things may be debatable. Maybe shelling out $25,000 for private school is a good investment because the school is excellent and public school is crap. For me, I could never afford that kind of money. Even if I could, I would not pay that much.

I noticed Americans are very careless with their money. They especially are extremely generous tippers.

All of these pale in comparison to the lengths people will go to buy a home especially in this climate. Some people are willing to commute 2+ hours for a big home in the suburbs yet seldom see it because they spend so much time on the road. Then the temptation is to fill that big house with stuff like you just said and naturally you need a second or even third car. You are definitely right that a big TV is one of the bigger money sinks out there since some people are burning $100+ a month for channels they don't even watch or not even home to watch.

 

[explorerzip]

Maybe shelling out $25,000 for private school is a good investment because the school is excellent and public school is crap. For me, I could never afford that kind of money. Even if I could, I would not pay that much.

I noticed Americans are very careless with their money. They especially are extremely generous tippers.

And you're not careless with your money? Sorry, I had to go there. Higher education, generally speaking, is a lousy investment especially when students don't know what the labor market is demanding. A PHD in Psychology is very expensive if you cannot find work or create your own job.

 

[JackBurton]

Americans are shameful about their saving habits. This is a country where the income tax is so low that 15nstates don't collect any income tax. If they are keeping, on average, 90% of their pay, there is no excuse that they aren't in better shape financially.

Whenever they complain on the news about their taxes going up, my response is "when they start being taxed at the rate most other first world countries are, then you get to complain"

 

[Smallcock]

We live in a capitalist society that is exceedingly good at separating people from their money. Even worse, we're encouraged from a young age to borrow to buy stuff. Forget about Shakespeare, algebra, history, etc. start with books like Rich Dad Poor Dad, The Wealthy Barber, etc.

Finance really should be taught throughout elementary and high school. Why isn't it?

The curriculum needs and overhaul.

 

[FAST]

Finance really should be taught throughout elementary and high school. Why isn't it?

The curriculum needs and overhaul.

Agreed,...but who's going to teach them,...???

FAST

 

[Yoga Face]

Finance really should be taught throughout elementary and high school. Why isn't it?

.

taught what?


put some savings away?

buying a house you cannot afford ?


not reading the mortgage and understanding the low rates will go up after a few years?


believing a housing bubble will last forever so time to jump in ?


do not buy on a CC if you cannot pay it off because the rates are 19% ?


you need to be taught this?


but, then again, they elected trump

 

[out4fun]

I've been a saver since the days of my paper route. I really don't understand why so many people outspend their resources.