Whenever I see one of these stories about how little Americans have available for an emergency, my blood starts to boil. I understand that poor people making $25,000 per year are forced to live paycheck to paycheck. But when 63% of all Americans can’t handle a $500 emergency, and 46% of households making over $75,000 can’t handle a $500 emergency, then they are just plain stupid, frivolous, and incapable of distinguishing between wants and needs. Delayed gratification is a trait almost non-existent among Americans today.
The first thing that infuriates me is the assumption that a $500 car repair or house repair is an unexpected emergency. It’s a fucking living expense. It’s not a fucking surprise. Your car will need new tires every few years. That’s $500 or more. Your hot water heater, air conditioner, roof, windows, etc. will need to be replaced. Everyone gets sick. That is not unexpected. Anyone who lives their life as if these expenses are a shocking surprise is a blithering idiot. And this country is crawling with blithering idiots.
So the majority of Americans can’t handle a $500 expense, but for the last two years there have been 35 million new cars “sold” to blithering idiots on credit or leases. Even though they have no money, they decide it’s a brilliant idea to commit to a 7 year payment of $300 to $500 per month on an asset that declines in value rapidly. Morons abound. These are the same people who must have their Starbucks coffee every day. These math challenged boobs could defer buying a Starbucks coffee every day, save the $3, and accumulate $750 of emergency savings in one year.
There are millions of brain dead Americans who are going to reap a whirlwind of consequences when this shit show implodes. They’ll be wailing and gnashing their teeth when their years of living for today catches up to them. Too fucking bad. The only way to accumulate wealth is to spend less than you make. It’s a lesson they failed to heed, and they will regret it for the rest of their pitiful lives.
Most Americans are one paycheck away from the street
Americans are starting 2016 with more job security, but most are still theoretically only one paycheck away from the street.
Approximately 63% of Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair, according to a survey released Wednesday of 1,000 adults by personal finance website Bankrate.com, up slightly from 62% last year. Faced with an emergency, they say they would raise the money by reducing spending elsewhere (23%), borrowing from family and/or friends (15%) or using credit cards to bridge the gap (15%).
This lack of emergency savings could be a problem for millions of Americans. More than four in 10 Americans either experienced a major unexpected expense over the past 12 months or had an immediate family member who had an unexpected expense, Bankrate found. (The survey didn’t specify the impact of that expense.) “Without emergency savings, you may not have money to cover needed home repairs,” says Signe-Mary McKernan, senior fellow and economist at the Urban Institute, a nonprofit organization that focuses on social and economic policy. “Similarly, without emergency savings, people could raid their retirement account.”
The findings are strikingly similar to two other reports, one by the U.S. Federal Reserve survey of more than 4,000 adults released in 2014. “Savings are depleted for many households after the recession,” it found. Among those who had savings prior to 2008, 57% said they’d used up some or all of their savings in the Great Recession and its aftermath. And another survey of 1,000 adults released last year by personal finance website GOBankingRates.com found that most Americans (62%) have less than $1,000 in their savings account (although that doesn’t include retirement or other investment accounts).
Why aren’t people saving? Millions of Americans are struggling with student loans, medical bills and other debts, says Andrew Meadows, a San Francisco-based producer of “Broken Eggs,” a documentary about retirement. Central bankers hiked their short-term interest rate target last month to a range of 0.25% to 0.50% from near-zero, but that’s still a small return for savings left in bank accounts. Indeed, personal savings rates as a percentage of disposable income dropped from 11% in December 2012 to 4.6% in August 2015, according to the Bureau of Economic Analysis, and now hover at 5.5%.
More money and education can help. The latest Bankrate survey found that savings increased with income and education: Just 46% of the highest-income households ($75,000-plus per year) and 52% of college graduates lack enough savings to cover a $500 car repair or $1,000 emergency room visit. And while those figures could still be lower, Americans are willing to cut back on at least some expenses when money is tight: 58% say they’re “very/somewhat” likely to cut back on eating out, are likely to decrease their cable bill and 41% are likely to spend less on coffee at places like Starbucks, while 39% will seek out lower-cost cellphone bills.
But while unemployment is falling (5% in November 2015 versus 5.8% in November 2014) and the Affordable Care Act has given an estimated 16.4 million people access to medical care, the amount of wealth held by the middle class is shrinking. The share of income held by middle-income families has plunged to 43% of households in 2015 versus 62% in 1970, according to a report released last month by the nonprofit think tank Pew Research Center in Washington, D.C.
3:40 am this morning I heard the water pump run, odd, 3:45 am it ran again.
Hmmmmmmmmmm…..
Go into the basement, water heater blew, water everywhere, spent two hours cleaning that up before I made it to the shop by 6:45 am, meeting a plumber in an hour so I get to go home two hours early!
Yes it will be expensive. Was it unexpected? No because it’s 16 years old, we had money set aside for a new one five years ago, no sweat off my balls.
The stove or the refrigerator will be next.
My fear is all those people “wailing and gnashing their teeth when their years of living for today catches up to them.”
Will be able to vote a big slice of the pie I baked, you know, spread the filling.
The most shocking thing to me are student loans. I think most families heave off loaded the college expense onto the kids. Even so called responsible ones. I see the college stats and their recruiting pitches where they seem to brag that 89% or so of students are receiving financial aid even at community colleges. Really? I scrimped and saved and made sacrifices so I could pay college for my 2 kids. I am blessed I know, and I understand and sympathize with those that truly cannot afford it, but I have NO sympathy for those ( including on my street) whom I see with a flat screen tv’s every few years on the tree lawn for trash, and driving new cars and the like while having no savings or sense of responsibility. I also troll the county delinquent tax site to see whats up in the neighborhood (as it is public record) and am consistently surprised by the deadbeats who have racked up a few years of nonpayment. When the SHTF we are going to see A LOT of of folks get there comeuppance. Out.
Live for the day and to hell with tomorrow.
Eat, drink and be merry, for tomorrow we may die.
Don’t worry, be happy now.
Nothing but blue skies from now on.
Live. Love. Sing. For tomorrow may be too late.
Take care of the moment. Tomorrow will take care of itself.
These old “saws” have lost nothing of their appeal. If the present mindset among the population is any indication, they are still much loved and taken to heart. Expect no change.
I’ve seen many of my demographic that consistently has to “borrow” a cigarette, or buy it for a dollar. They get outraged by a $5 cover charge at a bar. I’ve known several who have ducked out on rent, or have stolen, and would are perfectly fine with ruining a relationship for life rather than pay what’s owed. They barely make rent each month, maybe 5 days late just to avoid eviction. If they don’t, they know which couch is crashable for a week or two. Yet it’s interesting the same guy bumming a cigarette will always find ways to obtain that which is really important to him. Concert tickets, trips to Burning Man, and a steady supply of his drug of choice seem toalways be somehow in reach. Priorities, I guess.
Speaking of wasting money at Starbucks, here’s a news story about a Starbucks cashier stealing a customer’s credit card number:
http://www.nydailynews.com/news/crime/calif-woman-confronts-starbucks-cashier-stole-info-article-1.2485151
A lot of this story sounds fishy in the first place, but it’s really not too bright to put a $5 latte on a fucking credit card in the first place. And the customer told the newspaper that the $212 fraudulent charge (which she won”t have to pay anyway) at Ralph’s represented money she needed for her kids and husband. So the customer might be a dumb cunt to start with.
Ralph’s is a Kroger-owned grocery chain here in Southern California. I don’t see how it is possible for the Starbucks cashier to ring up $212 of phony charges at Ralph’s with only the card number and not the actual card, except with collusion on the part of a Ralph’s cashier. No honest grocery store cashier is going to enter a credit card number into a sales terminal without seeing the actual card.
Still, this does go to show just how desperate everyday people are becoming. And it’s going to get worse, not better.
I think the evolution of the internet and all the attendant E shite for turning irrational humans into mindless twinkle-stared irrational humans………big reset needed to knock some sense up-side most collective bubble heads!
The truly scary revolting scenario is that the SHTF and all the deadbeats have the last laugh as the Feds come after those with saving for the bail ins. A truly nightmare scenario that could happen.
My 14 yo son has grown 6 inches and 3 shoe sizes in about 10 months. This entire year has been one loooonnngggg emergency :-). And my wife wonders why I only buy clothing for myself during boxing week sales….
Even after being out of work for around two years (of a 3+ year stretch) I had the $400 for a new dishwasher when the old one failed. I did try to fix the old one first, but the failed solder joint was apparently a symptom, not the cause, and the replacement part for the fancy old dishwasher was nearly as expensive as the basic replacement dishwasher. Yes, a dishwasher is not a necessity, but I hate washing dishes!
The problem I have is where do you put the money you have stashed away for these common every day occurrences? If you put it in the bank you get hit two ways – no to negative interest (when you figure in bank fees) and loss of value due to inflation.
And yet they tell us the savings rate is 5%. Of course, this is an average. I await the MEDIAN savings rate. I would bet it is close to 1%.
What’s going to happen when gas hits $4 again?
Stupid is withdrawing $ from your 401K to buy a truck because you have bad credit and you want it NOW! Unfortunately, I know people this stupid.
I figured out years ago that most are a paycheck or two from joining that street person they find disgusting on the way to work. Wages are far away from the cost of living.
In the past 28 years, I’ve owned 2 modestly priced new cars with #2 still in the garage and fit as a fiddle. Paid cash for both. After 18 years, the air conditioner on #1 went Tango Uniform* (in July, of course), and the cost to repair it was more than the car was worth. Off it went to charity with a good engine and drive chain. Estimated savings over those who buy new every 5-6 years: $50-60K. That alone will cover a lot of “unexpected stuff.”
*For the unwashed masses here, Tango Uniform is polite military jargon for Tits Up.
“In all things, balance.”
That is the only concept I have ever found that is always true.
There is some wisdom, certainly, to eat drink and be merry, for tomorrow we all may die.
Cashing out a 401K may seem the height of stupidity…or perhaps the height of stupidity is counting on your 401K to even exist in 10-20-30 years.
Personally, my wife and I record every single cent we spend in our budget. By no means is every cent spent wisely (we eat out, we get Starbucks occasionally, we have longish terms notes on 2 cars) but it is recorded. And hell yes, we could cover $500 or $1000 emergencies without a sweat.
My nature is to pinch pennies and save save save. With sound money it is the best way to go…with debt-based, toilet-paper-maquerading-as-money fiat, much less so.
Balance.
It doesn’t help the average working person is ass raped in taxes to support illegals / Somali’s / niggers / breeders / etc.
This shit is why I get irate when I hear that “the 10 richest people have more than the bottom 150 million combined” or whatever.
Fuck me. If you have $10 bucks n your pocket you have more than he bottom 150 million combined. It is their own damn fault, but they are always looking for someone else to blame.
I sold a car to my sister in law once. New engine, paint, battery, etc. – perfect as new. In a year it was a wreck, and she sad I sold her a lemon. The generator went out. Fuck me, it was 10 years old. I told her that was routine maintenance. She could not get her head around that. That she never maintained it, and crashed it a couple of times had nothing to do with it starting to have problems. Nope, I sold her a lemon.
Fuckwits everywhere.
‘Millions of Americans are struggling with student loans, medical bills and other debts, says Andrew Meadows, a San Francisco-based producer of “Broken Eggs,” a documentary about retirement.’
How does a student loan have anything to do with retirement? Isn’t there a half century between getting your sheepskin and hitting the links?
That entire article was filled with mumbo-jumbo.
Best line-
“More money… can help.”
For realz? If you don’t have enough money, more money can help? Wow, profound stuff Mr. Fotrell.
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Many people see that the government runs deficits constantly. Maybe they think they can too. No excuse to them, but it could be their mindset is at least partially a result of that.
Make basic economics required in schools, from middle school up.
OutLookingIn says:
Live for the day and to hell with tomorrow.
Eat, drink and be merry, for tomorrow we may die.
Don’t worry, be happy now.
Nothing but blue skies from now on.
Live. Love. Sing. For tomorrow may be too late.
Take care of the moment. ………………………..Some rich white dude will take care of tomorrow.
We gone build us a great safety net and make the white man pay for it.
We gone make Amerikka great again, Jack.
Maslow’s hierarchy:
take care the basics first
Food, shelter, clothing (and the rainy day fund)
I learned financial basics from my mother. She accounted
for every penny spent. I do the same thing. Once you know
what you are spending, then you can better plan for the future.
Someone said…lots of people go broke pretending to be rich.
Dad always said…who cares what people think? They aren’t
thinking about you anyway, they are thinking about themselves.
B cheap…B free
40% of millennials have used a pawnshop or payday lender
By Jillian Berman
Published: Jan 7, 2016 9:41 a.m. ET
It’s no secret that today’s 20- and 30-somethings are skittish about the financial system.
Watching their parents and grandparents lose a big chunk of their retirement savings during the Great Recession has not exactly endeared them to the stock market. And they’re wary of asking financial advisers, for, well, financial advice, and instead turn to apps, blogs and social clubs.
But that fear apparently doesn’t extend to the alternative financial system. More than 40% of millennials used a payday loan, pawnshop, tax refund advance or other alternative financial product in the past five years, according to a survey of more than 5,000 millennials released Thursday by tax and consulting firm PricewaterhouseCoopers and the Global Financial Literacy Excellence Center at George Washington University.
Though it’s hard to see exactly how this rate compares with the general population, it’s pretty clear young people aren’t alone in availing themselves of these products. Nearly the same percentage (39%) of U.S. households used at least one alternative financial service, according to a 2013 survey from the Federal Deposit Insurance Corporation.
Consumer advocates have derided these products, saying they target the most financially vulnerable Americans, offering them quick cash and charging them exorbitant fees that leave them saddled with debt it’s difficult to climb out from under. But in many cases, frequent users of these products have few alternatives to bridge the gap between paychecks because they may struggle to get a loan from a traditional financial institution.
What’s particularly troubling about 20- and 30-somethings’ use of payday lenders and pawnshops is that millennials are better educated than previous generations and they’re tech savvy, so one might expect they’d research these products and discover their perils before using them, said Shannon Schuyler, PwC’s corporate responsibility leader and a co-author of the report. But it appears they’re desperate.
“They have already maxed out everything else and so they’re going to behavior that’s deemed even riskier,” she said. Nearly 30% of millennials are overdrawing on their checking accounts and more than half are carrying a credit card balance, the PwC report found. Of millennials with retirement accounts, more than 20% have taken out loans or hardship withdrawals in the past year.
While it’s easy to chide 20- and 30-somethings for financial behavior that would make personal finance guru Suze Orman shudder, millennials may be turning to these practices in part because they’re struggling financially. The combination of growing student debt, increased cost of living and sluggish wage growth means that many young people may be desperate to find financial resources anywhere they can.
“This is certainly a call to companies and schools and academic institutions, regardless of the level, that we need to educate people,” Schuyler said. “This is a fundamental life skill that needs to be taught consistently and throughout the learning experience.”
For millennials who are using alternative financial services regularly, Schuyler suggests they look back at each time they used one of these products to get a sense of how much money they might be losing by using one. That simple exercise could convince them to turn to another source of funds, she says.
The author has never heard of fractional reserve banking, The Federal Reserve, inflation, or even the cost of living. Apparently, anyone who has financial trouble in this day and age is simply another spendthrift and useless eater.
http://www.businessinsider.com/charts-decline-of-the-middle-class-2016-1
Whomever the author might be, perhaps they should seek medical supervision. After all, reality doesn’t appear to agree with them.
Warren Boner
You one trick pony idiots blaming all ills on the banking system are a fucking joke. You douchebags don’t think personal responsibility plays any part in a person’s life. I really should require an IQ test to weed out the retards like yourself.