General Less than half of Americans have savings to cover a surprise $1,000 expense

[Splinty]

Bankrate's Annual Emergency Fund Report | Bankrate

Among high interest rates, a new Bankrate poll shows that a growing number of people have more credit card debt than emergency savings.

www.bankrate.com

Is American lack of saving a cultural issue or a system caused issue?
Should a household of 45,000 be able to save 1000 dollars in the current environment or is the environment too expensive such that income doesn't cut it anymore?

 

[Greenbean]

Bankrate's Annual Emergency Fund Report | Bankrate

Among high interest rates, a new Bankrate poll shows that a growing number of people have more credit card debt than emergency savings.

www.bankrate.com

View attachment 58085



Is American lack of saving a cultural issue or a system caused issue?
Should a household of 45,000 be able to save 1000 dollars in the current environment or is the environment too expensive such that income doesn't cut it anymore?

It's out tipping culture. Start stiffing your waitresses and watch America become the powerhouse that we all know it can be

 

[BeardOfKnowledge]

Bankrate's Annual Emergency Fund Report | Bankrate

Among high interest rates, a new Bankrate poll shows that a growing number of people have more credit card debt than emergency savings.

www.bankrate.com

View attachment 58085



Is American lack of saving a cultural issue or a system caused issue?
Should a household of 45,000 be able to save 1000 dollars in the current environment or is the environment too expensive such that income doesn't cut it anymore?

I'll admit only skimmed the article, but it appears what they're actually asking is "How many Americans have $1000 in an envelope in their house?" Their definition of "savings" seems to be somewhat narrow.

 

[Filthy]

Savings is a suckers game in a system of fiat currency.

Debt is where it's at.

 

[BeardOfKnowledge]

Savings is a suckers game in a system of fiat currency.

Debt is where it's at.

It's also worth noting that investments aren't savings. But liquid investments can provide quick cash in emergencies.

 

[Filthy]

It's also worth noting that investments aren't savings. But liquid investments can provide quick cash in emergencies.

my liquid investment is fentanyl.

 

[Splinty]

I'll admit only skimmed the article, but it appears what they're actually asking is "How many Americans have $1000 in an envelope in their house?" Their definition of "savings" seems to be somewhat narrow.

No it isn't.
1000 in the bank not already ear marked to bills would meet the criteria and is a pretty normal expectation of "savings".




The remainder would have to credit card or loan, which is essentially the same thing, or change their spending output. It's notable only 15% think they could pay 1000 and then alter their output to absorb it. In reality its likely that 15% are over estimating their ability to do this. If you are spending down to less than 1000 in savings its unlikely to all be as voluntary as you think.

No matter how you split the hairs, 34% straight up don't have the cash on hand to pay a 1000 dollar expense and will go into debt to cover it.
1000 dollar hit comes really easily. That's a terribly large number of people completely financially insecure.

 

[Hauler]

Is American lack of saving a cultural issue or a system caused issue?

It's a bit of both, but I think it has more to do with people not being fiscally responsible.

Just using housing as an example. Folks go to the bank to get pre-approved. That's typically the max amount they can afford, yet that's what many folks go shopping for.

So the system is setting them up to be maxed out to the limit of what they can afford, but the individual doesn't reel that back at all and just pushes all their chips into the pot.

Any hiccup in expenses or income puts them in dire straits. Best case scenario they keep their heads above water long enough for the property to appreciate or their income increases and life becomes easier.

I know plenty of folks who are paycheck to paycheck. That would stress me the fuck out. My parents always taught me to live way below my means. It's a lesson that stuck.

 

[Splinty]

Savings is a suckers game in a system of fiat currency.

Debt is where it's at.

Only debt against your existing assets such that you maintain an appreciating asset.
Other debt is no different than saving then paying. Our parents saved then spent. We spend then payback. It's the same zero over time missing opportunity cost. Credit card, short term loans, car loans, etc are all garbage at wealth generation.

Borrow against your house or portfolio and then buy more assets.

But there's no wisdom in turning a 1000 dollar car repair into 1200 over the year. Your inflation, even right now, doesn't beat the credit card companies mastery of soaking their borrowers.

 

[BeardOfKnowledge]

No it isn't.
1000 in the bank not already ear marked to bills would meet the criteria and is a pretty normal expectation of "savings".

View attachment 58093


The remainder would have to credit card or loan, which is essentially the same thing, or change their spending output. It's notable only 15% think they could pay 1000 and then alter their output to absorb it. In reality its likely that 15% are over estimating their ability to do this. If you are spending down to less than 1000 in savings its unlikely to all be as voluntary as you think.

No matter how you split the hairs, 34% straight up don't have the cash on hand to pay a 1000 dollar expense and will go into debt to cover it.
1000 dollar hit comes really easily. That's a terribly large number of people completely financially insecure.

If I take all my extra cash and buy Bitcoin with it. I would easily have access to $1000 if I needed it, but would also be "unable to come up with $1000 in savings". That's why I say it's a narrow definition. If they're only counting cash in bank accounts it's an even worse metric to be using. Who the fuck leaves cash in a bank account that accumulates 0 interest?

Regarding financial insecurity, yeah, it's definitely a thing and a direct result of inflation and cheap money.

The initial thought I had reading the title but didn't bother addressing as they bring it up in the article is that they've more than doubled the amount of money they're using this time around. So Americans are actually getting better at saving by their own definition.

 

[Hauler]

Who the fuck leaves cash in a bank account that accumulates 0

[/QUOTE]

 

[BeardOfKnowledge]

[/QUOTE]

You're old enough that there's no way you trust banks and all your money is under your mattress.

 

[Rambo John J]

Lack of education IMO, followed closely by discipline

The last couple years have shown how shockingly low the average American's intellect is

Brainwashed to blindly and happily consume and follow

 

[Hauler]

You're old enough that there's no way you trust banks and all your money is under your mattress.

It's IN my mattress.
Only idiots hide it under the mattress.

 

[kneeblock]

Culture and economy are fundamentally inseperable.

 

[Hauler]

Culture and economy are fundamentally inseperable.

How so?

 

[kneeblock]

How so?

Short answer, base determines superstructure.

Longer answer, our cultural forms emerge out of the possibilities for reproducing ourselves. We take a lot for granted about resource allocation in our world because we've been born into it. Reality as is is the only reality we know. Culture is constantly being made in physical spaces and among associations of people. The primary organizer of those associations is the combination of the labor we perform to keep society going and the diversion we use to blow off steam so that we can keep laboring to reproduce society. In that sense, the choices we make and values we have are chosen for the reproduction of society and the distribution of resources in said society according to its dominant logics. Unfortunately hyperconsumption is just as significant a marker of value as meager austerity, which is one of the many contradictions of our economic order.

 

[Robbie Hart]

I have $1,001 in savings, I win

 

[Hauler]

Short answer, base determines superstructure.

Longer answer, our cultural forms emerge out of the possibilities for reproducing ourselves. We take a lot for granted about resource allocation in our world because we've been born into it. Reality as is is the only reality we know. Culture is constantly being made in physical spaces and among associations of people. The primary organizer of those associations is the combination of the labor we perform to keep society going and the diversion we use to blow off steam so that we can keep laboring to reproduce society. In that sense, the choices we make and values we have are chosen for the reproduction of society and the distribution of resources in said society according to its dominant logics. Unfortunately hyperconsumption is just as significant a marker of value as meager austerity, which is one of the many contradictions of our economic order.

 

[Hauler]

Short answer, base determines superstructure.

Longer answer, our cultural forms emerge out of the possibilities for reproducing ourselves. We take a lot for granted about resource allocation in our world because we've been born into it. Reality as is is the only reality we know. Culture is constantly being made in physical spaces and among associations of people. The primary organizer of those associations is the combination of the labor we perform to keep society going and the diversion we use to blow off steam so that we can keep laboring to reproduce society. In that sense, the choices we make and values we have are chosen for the reproduction of society and the distribution of resources in said society according to its dominant logics. Unfortunately hyperconsumption is just as significant a marker of value as meager austerity, which is one of the many contradictions of our economic order.

You took a hard left at the end there.

Meager austerity and hyperconsumption aren't the same thing, especially when austerity is a choice rather than a necessity. Plenty have been indoctrinated into the art of more while others see it for what it is: A clever ruse by the powers that be.

Or maybe I missed your point which is entirely possible. You used a lot of big words there. ?

 

[RaginCajun]

If poor people gave more to the rich preachers, god would give them more money...