Survey: 69% of Americans Have Less Than $1,000 in Savings

[ScarySpikes]

Milenials Spend mess money and their reward is article after article about them killing industries

Even then, the 'spend less money' argument is bullshit. The compulsory or near compulsory expenses that people (millennials) have to pay are way outstripping inflation and wage growth. Basically for the first time in US history we are seeing a generational decline in terms of quality of life.

 

[MrIncredible]

That statistic, if true, is as much a function of how much people spend as it is about income. There is no reason that almost anyone who isn't homeless, should have less than $1,000 saved for a rainy day, unless they don't have control of their spending. So sick of hearing about how poor everyone is when all I see are new cars on the road and $1,000 cell phones in the hands of just about every, man, woman and child in the U.S. If you have less than $1k saved, you should be unshaven, poorly clothed, shoeless and lacking any kind of cell phone service. If you have any of those and you're still dead broke, it's most likely on you and your bad fucking decisions.

Seems a bit judgy. The number one cause of bankruptcy in the US is medical debt. Should these people not get sick?

Shoes are excessive? Really?

 

[budman]

I don't think blaming Apple or Bux holds water..

It is each person's circumstance and life choices.

I was dead ass broke in '89 with 3 kids and decided motorcycle racing was selfish.. took me a while to get there. I was 31.

I am glad to see my kids ahead of the curve.. although 3 have bought homes and I am not sure where they stand as far as savings, I know at least two of the three do save and have created bank accounts for their kids with a request that birthday and Christmas presents go there. A good choice to me.

My youngest who is looking to move to the City has saved a lot after college by staying at home banking what would be rent $$ every month. At 26 she is in that top category of savers for her age. Granted not all can or want to do that of course and I get that. Soon to be empty nester for me.

For 20 years Mrs. Budman has saved our tax returns and that is our way of budgeting for savings in a way. Paying for college did not allow much savings other than that really. I am on an allowance and she is just stingy basically so it works out.

Other choices make a difference though. We buy Used cars, no extravagant vacations and have refused to pay for extravagant weddings too.. (cheap ass me). Rather I gift them some of what it would have taken for a nice wedding at their 1st anniversary. They tend to take decent vacations, but not crazy. Meanwhile the wife and I don't take nice vacations. I get my moto rallies and a couple of trips to COTA for the last decade. Missing out on seeing the world, but I can afford a new moto every few years so that is my priority I suppose.

One kid still did the extravagant wedding on his own along with his in-laws help. They probably thought I was a dick, but with 5 kids you have to draw some lines and I wanted my son to think it through. He made his choice to follow through. An adjusted lifestyle allowed them to keep Mom at home with the kids and I have a lot of respect for their effort. They choose camping trips, dumped cable TV and other luxury stuff. He does have 9er season tix and a new truck. I guess he is doing AOK.

I do think the cost of living and somewhat stagnated income sure have made a difference for so many.

 

[kevin 714]

That statistic, if true, is as much a function of how much people spend as it is about income. There is no reason that almost anyone who isn't homeless, should have less than $1,000 saved for a rainy day, unless they don't have control of their spending. So sick of hearing about how poor everyone is when all I see are new cars on the road and $1,000 cell phones in the hands of just about every, man, woman and child in the U.S. If you have less than $1k saved, you should be unshaven, poorly clothed, shoeless and lacking any kind of cell phone service. If you have any of those and you're still dead broke, it's most likely on you and your bad fucking decisions.

The idea that a cell phone is a luxury item is both funny, and utterly rooted in a decades old view of technology. The poorest people in the world, subsistence farmers in India west Africa etc, have cell phones

This isn’t 1996 bro

Access to the internet is effectively essential to existing, and a requirements for nearly every job application now. Most those people with phones, purchased ON DEBT, don’t have personal computers. The phone is their access. Shit I work in the trades and you couldn’t even apply to my business without a phone

 

[bikewanker]

I don't think blaming Apple or Bux holds water..

It is each person's circumstance and life choices.

I was dead ass broke in '89 with 3 kids and decided motorcycle racing was selfish.. took me a while to get there. I was 31.

I am glad to see my kids ahead of the curve.. although 3 have bought homes and I am not sure where they stand as far as savings, I know at least two of the three do save and have created bank accounts for their kids with a request that birthday and Christmas presents go there. A good choice to me.

My youngest who is looking to move to the City has saved a lot after college by staying at home banking what would be rent $$ every month. At 26 she is in that top category of savers for her age. Granted not all can or want to do that of course and I get that. Soon to be empty nester for me.

For 20 years Mrs. Budman has saved our tax returns and that is our way of budgeting for savings in a way. Paying for college did not allow much savings other than that really. I am on an allowance and she is just stingy basically so it works out.

Other choices make a difference though. We buy Used cars, no extravagant vacations and have refused to pay for extravagant weddings too.. (cheap ass me). Rather I gift them some of what it would have taken for a nice wedding at their 1st anniversary. They tend to take decent vacations, but not crazy. Meanwhile the wife and I don't take nice vacations. I get my moto rallies and a couple of trips to COTA for the last decade. Missing out on seeing the world, but I can afford a new moto every few years so that is my priority I suppose.

One kid still did the extravagant wedding on his own along with his in-laws help. They probably thought I was a dick, but with 5 kids you have to draw some lines and I wanted my son to think it through. He made his choice to follow through. An adjusted lifestyle allowed them to keep Mom at home with the kids and I have a lot of respect for their effort. They choose camping trips, dumped cable TV and other luxury stuff. He does have 9er season tix and a new truck. I guess he is doing AOK.

I do think the cost of living and somewhat stagnated income sure have made a difference for so many.

“They probably thought I was a dick”. All hail Budman for he steadfastly lived within his means.
But family over racing?

 

[budman]

I pushed it out for 10 years almost. I think my boys enjoyed it for the most part. Good times.. Pic below is my sons with Kazman.

If I was not a Dad I would have raged on for sure. It hurt to quit. A lot.

 

[thedub]

The idea that a cell phone is a luxury item is both funny, and utterly rooted in a decades old view of technology. The poorest people in the world, subsistence farmers in India west Africa etc, have cell phones

This isn’t 1996 bro

Access to the internet is effectively essential to existing, and a requirements for nearly every job application now. Most those people with phones, purchased ON DEBT, don’t have personal computers. The phone is their access. Shit I work in the trades and you couldn’t even apply to my business without a phone

I think you kind of missed his point. Yes, you need internet access to function in today's society.

Internet access isn't the luxury item in his example, the $1,000 smart phone is.

I'm sure a huge majority of those 69% of Americans with less than $1,000 in savings are walking around with $1,000 smart phones that they pay $41.66/mo on. They could be using some cheap-o phone that does the same thing and bank that monthly payment, but they make a choice to live at a certain level and sacrifice savings to do it.

Yes, medical debt is a problem, student debt is kind of out of control, cost of living is atrocious in some places, etc; true hardship exists for many people. But for just as many they can't save any money because they have simply made a choice to use that money elsewhere.

Archimedes' post may have been a little crass, but it's a valid point.

 

[mrmarklin]

That statistic, if true, is as much a function of how much people spend as it is about income. There is no reason that almost anyone who isn't homeless, should have less than $1,000 saved for a rainy day, unless they don't have control of their spending. So sick of hearing about how poor everyone is when all I see are new cars on the road and $1,000 cell phones in the hands of just about every, man, woman and child in the U.S. If you have less than $1k saved, you should be unshaven, poorly clothed, shoeless and lacking any kind of cell phone service. If you have any of those and you're still dead broke, it's most likely on you and your bad fucking decisions.

Totally true.

And the $30K income level is also relevant. One can still have a life on this amount. In fact, double that amount is approximately the median income for families in the US. A lot of married couples live on this amount. Or less

 

[Blankpage]

GIMME ALL THE THINGS

 

[Archimedes]

Seems a bit judgy. The number one cause of bankruptcy in the US is medical debt. Should these people not get sick?

Shoes are excessive? Really?

You think 69% of the people in the U.S. are crippled by medical debt? Exception meet rule.

You're falling prey to anecdotal evidence portrayed by the media as statistically representative. The real reason most people in the U.S. have no savings is simple: they don't fucking save. I've got a family full of them and many friends in the same boat. If you're not 'able' to save anything, then you shouldn't have lots of new shit all the time. No savings? Strange but, didn't you go on vacation to Maui last year? Isn't that the new iPhone 10X in your hand? And isn't that car of yours parked outside pretty new? Nice shoes by the way - Yeezy's?

 

[Archimedes]

The idea that a cell phone is a luxury item is both funny, and utterly rooted in a decades old view of technology. The poorest people in the world, subsistence farmers in India west Africa etc, have cell phones

They all have the latest iPhone X?

And I'm pretty sure 99% of teens and early 20 sometings are using their phones mostly to post nonsense on social media, read worthless faux news and play games.

 

[Archimedes]

It's fucking simple. Save before you spend on anything other than an absolute fucking necessity. Roof, heat, clothes from goodwill, payless shoes, ramen, save, everything else. Or just stop whining about why you have no savings.

 

[Blankpage]

They all have the latest iPhone X?

For the sake of my aapl shares I hope thats their plan.

 

[MrIncredible]

You're falling prey to anecdotal evidence

Says the guy making a judgement based on his....anecdotal experience.

So sick of hearing about how poor everyone is when all I see are new cars on the road and $1,000 cell phones in the hands of just about every, man, woman and child in the U.S.

None of this changes the fact that you have stated this:

If you have less than $1k saved, you should be unshaven, poorly clothed, shoeless and lacking any kind of cell phone service. If you have any of those and you're still dead broke, it's most likely on you and your bad fucking decisions.

So the people with low paying jobs and no savings should lose the shoes, stop the hygiene and what...keep working? How's that going to go over at work?

And your initial complaint about the 69%.....looks like it's a measly 20%.

I guess they shouldn't get sick.

https://www.fool.com/retirement/2017/05/01/this-is-the-no-1-reason-americans-file-for-bankrup.aspx

"Now it's not shocking to learn that countless Americans struggle with medical debt, but what is surprising is the extent to which insured individuals have trouble keeping up. Last year, The New York Times reported that 20% of Americans under 65 with health insurance had trouble paying their medical bills over the past year. Of those, 63% claim to have used up all or most of their savings to tackle their healthcare expenses, while 42% took on an extra job to cover their costs."

 

[MrIncredible]

It's fucking simple. Save before you spend on anything other than an absolute fucking necessity. Roof, heat, clothes from goodwill, payless shoes, ramen, save, everything else. Or just stop whining about why you have no savings.

They aren't whining. This thread is the result of a survey.

 

[MrIncredible]

I think you kind of missed his point. Yes, you need internet access to function in today's society.

Internet access isn't the luxury item in his example, the $1,000 smart phone is.

I'm sure a huge majority of those 69% of Americans with less than $1,000 in savings are walking around with $1,000 smart phones that they pay $41.66/mo on. They could be using some cheap-o phone that does the same thing and bank that monthly payment, but they make a choice to live at a certain level and sacrifice savings to do it.

Yes, medical debt is a problem, student debt is kind of out of control, cost of living is atrocious in some places, etc; true hardship exists for many people. But for just as many they can't save any money because they have simply made a choice to use that money elsewhere.

Archimedes' post may have been a little crass, but it's a valid point.

Are the price tags hanging off their phones? The ones that re pretty often in a protective case? My wife has a fancy Iphone from work.

Mine is a $30 LG piece of junk.

Can you tell them apart when I'm walking by?

 

[SM610]

It's fucking simple. Save before you spend on anything other than an absolute fucking necessity. Roof, heat, clothes from goodwill, payless shoes, ramen, save, everything else. Or just stop whining about why you have no savings.

Payless??? What? are you frickin Warren Buffet??

 

[Removed 3]

Having the latest iPhone is likely the result of peer pressure (or keeping up with The Jones' mentality) and/or the fact that the Apple apps or support for older models become obsolete. The proprietary phone hooks their loyal customers to upgrade, unlike various brands of Android phones. I bought an LG phone for less than $200 last year to replace an older LG, whereas I see some people I know need to have the latest Samsung or iPhone. The material need to have it is real and is irrational.


It is easy to judge but that is just unproductive. The article is a wake-up call. You live and learn. Work out how to succeed at building your savings, at your own pace over time. The article in the OP includes retirement accounts as savings accounts. In regards to 401(k)s, don't forget to contribute up to % that is matched by the employer or else you're missing out on free money.

 

[Map8]

That statistic, if true, is as much a function of how much people spend as it is about income. There is no reason that almost anyone who isn't homeless, should have less than $1,000 saved for a rainy day, unless they don't have control of their spending. So sick of hearing about how poor everyone is when all I see are new cars on the road and $1,000 cell phones in the hands of just about every, man, woman and child in the U.S. If you have less than $1k saved, you should be unshaven, poorly clothed, shoeless and lacking any kind of cell phone service. If you have any of those and you're still dead broke, it's most likely on you and your bad fucking decisions.

You think 69% of the people in the U.S. are crippled by medical debt? Exception meet rule.

You're falling prey to anecdotal evidence portrayed by the media as statistically representative. The real reason most people in the U.S. have no savings is simple: they don't fucking save. I've got a family full of them and many friends in the same boat. If you're not 'able' to save anything, then you shouldn't have lots of new shit all the time. No savings? Strange but, didn't you go on vacation to Maui last year? Isn't that the new iPhone 10X in your hand? And isn't that car of yours parked outside pretty new? Nice shoes by the way - Yeezy's?

Hmmm.

 

[byke]

Don't some services basically force you to be poor before you're eligible? Like if you have savings, or if your car has too much value, or if you have a 401k, don't some social services force liquidation before their services become available?