Posted on 01/20/2023 3:05:09 AM PST by EBH
Statistically speaking, families with more income have more so-called “excess” spending and therefore more opportunities for trimming.
How do you cut back on vehicle insurance? Call Geico?
Actually yes. LOL
Insurance Rate Shop
Review your deductibles
Is your vehicle paid off? (Rare these days). If you totaled it would you get more than your deductible for it? NO, drop those parts of your coverage and carry only liability.
Exactly.
And they are seeing the handwriting on the wall.
Yes, article actually indicates a the trimming is about 10% in those over 100K and 5% in those under 99k.
Exactly.
A larger percentage of their spending is discretionary so they can cut spending the most.
If you are barely able to cover your living expenses you can cut some.. buy the generic brand, buy pork instead of beef, etc.. but you really don’t have many discretionary spending to cut.
Once you comfortably have the necessities covered you spend on things you don’t need but want.. when you decide to cut back the want things can go, higher earners have more money being spent on wants so they can cut back the most when they choose to
No bonuses or raises this year. At least for the little fish, anyway.
No bonuses or raises this year. At least for the little fish, anyway.
Lower injury levels. PIP.
“Statistically speaking, families with more income have more so-called “excess” spending and therefore more opportunities for trimming.”
________________________________________
True statement in terms of total dollars spent. However, the lower the income the higher the percentage of that income is spent on “wants” vs. “needs”. For example, I might want a $1500 iPhone 14 complete with a $80/month unlimited data plan with 2 year contract but all I need is a used $160 iPhone 7 on a pay as you go monthly $30 plan.
Add to that homes they cannot afford, cars they cannot afford and vacations they cannot afford. Savings in the bank? How quaint.
The real economic crash will come when the bulk of the middle class upper/mid/lower defaults on car and home payments. This is going to happen the only question is when. The unwillingness to part with the iPhone 14 at the expense of the roof over their heads will be the result.
I have read that 40% of American families age 60-79 that own homes have a mortgage on their primary residence. That means that a large number of retired or near retired homeowners are making monthly mortgage payments. Nothing screams “I’m unprepared for retirement” quite like taking a mortgage with you for the retirement ride.
Good ol’ “discretionary spending”.
As we saw in the financial crisis, the government is willing to do a lot of things previously unimaginable before letting the world blow up, and I am quite certain that would be the case here as well.”
https://www.cnbc.com/2023/01/18/stock-market-futures-open-to-close-news.html
To make that a hot link:
https://www.cnbc.com/2023/01/18/stock-market-futures-open-to-close-news.html
My wife and I are fine, but yesterday I was actually thinking how I am not confident in the future of the economy, so I am decreasing spending even though my income has gone up in the last two years. Both parties are addicted to spending and the system just has to reset at some point. I’m out of the stock market for now. I’m hoarding cash even though I know that’s not optimal either.
There are no really good choices. Cash is better than most of the other options.
I have colleagues griping about their "201K" investments in stocks (e.g., they have lost 30% to 50% of their funds). A money market account or CDs paying close to zero interest still keeps the principle intact.
Inflation is still burning away the value of all savings and investments. The government is entirely responsible for that problem, as they are in essence, stealing the money and passing it out to their cronies.
Whatever shall we do?
Stuffing your mattress is a better option than investments these days as you watch them crash and burn and lose 1/3 or more of their value.
This is the point where people turn their cash into hard assets. When the system collapses, the money is worthless, and the stuff isn’t available any more, you at least have what you bought before the whole thing fell apart.
“ How do you cut back on vehicle insurance? Call Geico?”
I have been with Geico for several years and they are good insurance. However, they raise rates faster than Hunter Biden goes thru hookers! After about six years with no accident my rate had doubled. I was talking to someone recently who had the same experience and wound up switching agencies. I am shopping for a new agency now and every quote I have received is far lower. My advice, stay away from GEICO and State Farm. GEICO is good insurance but overcharges and State Farm also overcharges but is terrible insurance!
Don’t ever call Geico.
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