Posted on 01/06/2016 11:30:32 AM PST by Citizen Zed
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.
(Excerpt) Read more at marketwatch.com ...
Tell them starbucks and cell phones are not a necessity.
Easy Street?
. . . and only one winning Powerball jackpot away from a safe and secure retirement.
What about the 95 million Americans who aren’t getting a paycheck?
Half a paycheck now that Obamacare is in full force. But at least we have free healthcare.
No dining out here. Too salty and expensive.
What cable?
Starbucks? Bwaaaaahhhhaaaaaaaaa.....
Cell Phone? - Tracfone.
No wonder peeps can't create even a small $tash of their own.
Hussein voters are 'tards.
Most Americans get paychecks?
Lol. And the odds of that happening?
This chump assumes everyone is working and the economy is doing fine. News flash: There are many who are barely keeping their heads above water. It’s not necessarily that they squandered their paychecks on luxury yachts. For many, by the time they pay for food, medicine and other basic necessities, there isn’t any money left over to save or invest. Has this guy been in.a supermarket lately?
I know we’re in rough shape, economically, due to 0bamacare and everything else that jerk throws at us on a weekly basis, but you’ve got to admit that since people are no longer taught the BASICS in school, they’re on the losing track to begin with.
Balance a checkbook?
Understand and use a Household Budget?
Cook from scratch and not eat out or have delivery every day? Pack a lunch?
Save for things you WANT, get the best price on things you NEED?
WORK through college with a JOB in mind and chose a Trade School versus Feminazi Studies?
DELAY gratification?
Don’t have kids out of wedlock?
Stay married, if at all possible?
I mean, to many, these things are a foreign concept!
I came of age during Carter. No jobs, outrageous interest rates, no gasoline, unemployment through the roof, etc.
The REALITY of my situation then, spurred me on to join the military and get a good start in life. People thought I was NUTS because The Vietnam War had just ended, but got my college paid for. Had a sweet VA Loan when I needed it. Had awesome skills that employers wanted.
I never looked back and have prospered under every Socialist Dictator we’ve had, ever since.
These articles never seem to get to the root of the problem, IMHO. The Dems WANT people uneducated, unskilled and DEPENDENT upon Mother Government.
Screw That, Say I! :)
Part time workers can’t save, after buying their gubmint mandated Obamacare.
Middle Class Americans have to cut costs to survive, but Greedy Government never has to cut its spending. Ryan and McConnell and other GOP big spenders just gave Obama more than he asked for when they put another 1.2 TRILLION of spending on your children’s and grandchildren’s tax bill for the future. They will be destitute as they struggle to pay for the voter bribes charged to them by our current Congress.
Well, at least of few of us are doing OK. I meet with a bunch of buddies on Friday, we’re all in our early 60s and living well.
I can’t speak for the other 94 million, however....
I have not had less than a $1000 in savings since I was 16 years old. And that was over 50 years and two divorces ago.
“What about the 95 million Americans who aren’t getting a paycheck?”
Most are on some type of means tested govt. assistance (welfare) or Soc. Sec. or Fed/State govt. retirement etc.
Good point. The reason wealth is falling is because fewer people are working, despite the fudged unemployment numbers. After all, if you drop to Social Security Disability or take Social Security retirement early because you can’t find a job, you end up draining your savings and being unable to replenish it.
They’re sure not a necessity for me. But I wonder about cell phones. The need to be constantly in touch and jabbering away no matter where you are seems to be a newly ingrained entitlement, like having a place to live. This society’s expectations have exploded even as the means to pay for it have stagnated. The federal government’s habits are now ours. Good luck with that, kids.
Check your car insurance. We became lazy over the years and never checked prices. We liked our insurance agent and were happy.
Each year it inched up and finally we had had enough and priced insurance.
We saved thousands of dollars.
Changing your State of residence can help.....
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