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Tuesday, October 11, 2016

Seven out of Ten



According to USA Today, 7 our of 10 Americans have less than $1000 in savings. It's not just the lower classes. Nobody has any money saved. Even the well off are spending it as fast as it comes in.

I am not surprised. Two big reasons. The first is that wages have been stagnant for a long time. Hard to save much money when there isn't much extra. The second reason is that there's so little incentive to save. Banks have been paying less interest than the rate of inflation, often much less. Worse, there are banks that now have negative interest rates. Saving money is actually a money losing proposition.

Unfortunately that means few people have money stashed aside for an emergency fund. It's also well known that only are tiny percentage of people are saving for retirement. Few people believe that Social Security will be there for them yet almost nobody has the private means to get by.

No wonder so many people think they'll have to work until the day they die. That might no be so horrible a thing if we all loved our jobs. Would you do your job without pay just for fun? Darn few would.

Could it be that people don't expect the current financial situation to last? Currency collapse is overdue by historic standards. Why save dollars if they are going to go the way of the Continental?

In the end, it's probably a simple case of few people having anything left over at the end of the month.

-Sixbears

28 comments:

  1. It's getting to the point where I'm needing to find a way to take in a few dollars for gasoline if nothing else. Every week when we get groceries, we come home with less. Unfortunately, we used up our savings when I lost my job in 2009, and I've never been able to replace it.

    ReplyDelete
    Replies
    1. We got financially wiped out twice so far. Actually, last year turned out to be a lot more expensive than expected too. Makes it hard to get ahead.

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  2. Joe and I are the lucky ones and we know it. Joe's job was the firedepartment and he retired after 36 years but the pension just barely covers the utilities and the social security doesn't make a dent in the insurance.

    With the government claiming ownership of the social security (forgetting they first took it from us for our own good) there will be no one left to work at jobs that aren't available, in order to house, feed, and insure illegal aliens. Then what. The Clintons and the rest of the elected officials aren't going to cut lose any of THEIR ill gotten gains. It's a good thing that the guns they're against are in use by the secret service to protect those brave men and women.

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    Replies
    1. I too have a FD pension and I'm not even in the SS system. However, my lovely wife is collected a disability pension from SS. I'm working on bring in a bit more to pay down some unexpected debt but it's hard.

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  3. I'm sure I'm going to have to work until I either fall over or get packed out too.
    I've always been allergic to money. if it's within reach I have to get rid of it ASAP.
    Fortunately for me, my wife is the exact opposite and while we are by no means financially secure, we do have a bit tucked away that will hopefully cover any small emergencies.
    The thieving bastards that stole all that SS money are now sincerely wanting to get their grubby mitts on 401K's and any other retirement funds that aren't nailed down.
    It isn't just us Boomers who are well and truly fooked, the next several generations are going to be even worse off when SS does finally collapse, which is the plan du jour anyway.
    God help us all, there is going to be bloodshed eventually over the wealth disparity in the world and it is going to be horrific when it comes.

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    Replies
    1. My kids worry that they'll have to take care of us in our declining years. Serves them right. :)

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  4. I think all of us finally know the true meaning of the saying 'penny-pincher'. I know I do.

    ReplyDelete
    Replies
    1. I think most of us have similar struggles.

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  5. I believe it. I'm lucky that I do enjoy my job and that my age only increases my knowledge of how to do it better and better (CAD draftsman). It could be that I am eventually phased out by software allowing architects to do without my service, REVIT supposedly increasing productivity several times over.

    I'm actually surprised that doctors haven't been phased out by computers that are programmed with medical information and making diagnosis. When patient gives information on what gives them problems, a machine can analytically predict probable causes to it.

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    Replies
    1. People are going to be surprised how many jobs are going to be phased out in the near future. Companies have found it pays to replace even $5/hour jobs with machines.

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  6. everything goes to bills, no emergency cushion, car needs work but no money, groceries higher every week.
    we are being squeezed by those in control, but for what reason? trying to lower population by squeezing us dry?

    ReplyDelete
    Replies
    1. Income disparity is one of the greatest threats to our civilization.

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  7. Not only do people have no savings in a lot of cases they have had to lower living standards. Personally my meager savings in the bank is just for borrowing against at low rates. A CD pays 1% ,a CD secured loan is 3%.Home economics At one time included budgeting skills.

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    Replies
    1. Standards have slowly dropped, but it's become apparent to most folks that something is out of whack. My dad, with a blue collar job, supported the family, kept a house, a cottage on the lake and had part of a hunting camp. Kept a couple cars on the road and had boats. Mom did not have to work. Those days are gone.

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  8. What's out of whack, is that the war mongers keep spending trillions of dollars for war in the Middle East while ignoring the needs of the American people.

    ReplyDelete
    Replies
    1. Billions to destroy foreign countries, pennies to invest in ours.

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  9. I feel like the odd man out. The past five years have taken their toll on my body. First I had to have vascular bypass of my whole aorta from my kidney done to both legs, from complications after donating a kidney to sister.
    Then after being almost recovered from that, was run over while riding my cycle.
    Major damage in several areas from this. Now I'm slowly getting better, but will never be the same.
    This being said...we still have a couple years food storage and some cash saved up.

    We are very frugal, do not eat out (ever)
    Do not over eat. Do not drink, besides occasionally at home have an adult beverage.
    My wife still works full time at just under $10 hr. When I worked it was not at high wages either.
    I believe, much has to do with the compulsion to spend on newest latest gizmo, or the addiction to food most have.
    Dunno, but I do know this. We never out of every paycheck, spend it all. Even if it's only a single dollar, we put it back.
    They do add up....
    And no...I did not get a huge settlement on my accident. In fact it was only $25k, which was used to pay my part that medical insurance didn't cover out of the $350k total bill....
    So yes, you can save...but it is hard to do at times.

    ReplyDelete
  10. I feel like the odd man out. The past five years have taken their toll on my body. First I had to have vascular bypass of my whole aorta from my kidney done to both legs, from complications after donating a kidney to sister.
    Then after being almost recovered from that, was run over while riding my cycle.
    Major damage in several areas from this. Now I'm slowly getting better, but will never be the same.
    This being said...we still have a couple years food storage and some cash saved up.

    We are very frugal, do not eat out (ever)
    Do not over eat. Do not drink, besides occasionally at home have an adult beverage.
    My wife still works full time at just under $10 hr. When I worked it was not at high wages either.
    I believe, much has to do with the compulsion to spend on newest latest gizmo, or the addiction to food most have.
    Dunno, but I do know this. We never out of every paycheck, spend it all. Even if it's only a single dollar, we put it back.
    They do add up....
    And no...I did not get a huge settlement on my accident. In fact it was only $25k, which was used to pay my part that medical insurance didn't cover out of the $350k total bill....
    So yes, you can save...but it is hard to do at times.

    ReplyDelete
    Replies
    1. You had a tough row to hoe. Glad you are hanging in there.

      My food storage got used up once and my finances cleaned out twice. Glad I had resources as we were able to squeak by, but we are in the rebuilding phase right now.

      Had a good day picking up a few bucks on the side helping someone with an emergency on Sunday. Now if only I could get a few jobs like that on a regular basis. There's potential, but you never know.

      Delete
  11. Yet folks still have the latest cell phone (with an expensive data plan so they can keep up on Facebook...they have Netflix. Most (not all) eat out several times a week, (even if it is fast food) and when they eat in, they eat expensive prepared "heat and eat" food....

    And, of course, Starbucks and "energy drinks". And smokes and booze.

    But they don't have any way to save......

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    Replies
    1. There is a certain live for today attitude as their prospects aren't that great. Things like student debt overwhelm them and makes trying to save a joke so why not live for today? Not saying that's the right attitude, but I get it.

      As for the cell phone with data plan, you need it if you are trying to get a job. Everything is done online now. Sure there are work arounds, but in this always connected world you could miss opportunities.

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  12. am of "think before you buy"

    so got a "rainy day fund"

    others just spend it all away

    Wildflower

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    Replies
    1. I like to think how that nice shiny purchase will look in a few years with a $0.50 price tag in a yard sale.

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    2. MY SHOP

      cabinets, benches, chairs and such
      from "curbside shopping"

      my laptop was found in a dumpster

      reuse it, fix it, or home built

      others buy prime brand new

      parents raised me well

      Wildflower

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  13. Six bears said it for me
    Hang on in there x

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  14. I wonder how things will change after January of 2017. For my self I know it will get so much worse for me and my family. We have some saved upped but you can not talk about it because the things you have around you hear that you have extra money and they up and break on you. Then cost you more than you have saved upped.
    Anyway, just waiting to see what happens in January of next year.
    Heltau

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    Replies
    1. I'm curious to see what will happen to my cost of medical. Went up $50/month last year. If it takes a big jump I'm tempted to just drop it -again.

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