Posted on 11/28/2023 10:08:12 AM PST by davikkm
As the holiday season approaches, a recent LendingClub report reveals that 60% of adults are grappling with the harsh reality of living paycheck to paycheck. Despite this financial strain, consumers are gearing up to overspend during the festive season, marking a concerning trend of "hyper-consumption."
More Americans have experienced a decline in disposable income in 2022 than in any of the preceding seven years. This financial squeeze adds stress during a time traditionally associated with increased spending.
(Excerpt) Read more at citizenwatchreport.com ...
“The Biden Economy is Awesome and people just don’t understand FULL STOP.”
-Any given day on CNN or MSNBC.
This is a very bad thing when there’s a Republican President.
“Two Americas” becomes a theme for the talking heads.
Sad to say we know (acquainted) with some folks who are wearing super duty rose colored glasses.
Their plans proceeding as scheduled.
Of course they don’t. The people who vote for Biden assume all of their government assistance health and income subsidies will increase faster than inflation, and they probably do. I wouldn’t know though, because the only transaction I have with the government is to pay it.
We’ve been doing that for years. I hear the term, “disposable income” and I can only laugh...
They’re obviously talking about government retirees and their bloated tax paid gold plated retirement packages, some of which are being paid 6k, 7k, 10k and more PER MONTH!
Way to go Joe, your plan is working just as designed...
Is a welfare check considered a paycheck?
How is this different than any time in the last several decades?
If you’re buying new clothes, new cars, alcohol, soda, carb snacks, an iPhone, tobacco, vapes and a satellite or cable TV service, you’re not poor, yet.
...or attending sporting events.
Right, they can’t understand why people think the economy sucks.
I’m aware of the concept that some of the fiercest anti-smokers are former smokers. I believe this to be true.
We, spouse and me, were one of the 60% who lived paycheck to paycheck. It was a constant keeping track of when we go paid next and what bills were getting paid and in what order. The thing that sucked about it was that we actually had a decent income in the six figure range.
Well that day came when we had enough and decided to make a change. That day was March 15, 2018. Fifty six long and exhausting months later, on the same income previous, all of our debt was paid, including our mortgage, total $136,000.00
Today, one year later we are putting 40% of my income and 15% of spouse’s income into our 401Ks, we have 10 months expenses in an emergency HISA and opened a taxable brokerage account where we will put (for now) $200/month. Our savings rate for 2023 is about 50% of our income.
One year of no debt, literally none, today we both work for basically two reasons, the first is to build up our nestegg the second is to put off collecting social security until we are both age 70.
Get on a written budget, get rid of any unnecessary spending and make saving a priority. Care not what your neighbor has and live below your means. I have become a fierce anti-spender in that futile effort to try to keep up with the Smith’s and Jones. Most of them are in the 60%
Great job!
Holding off Social Security until you are 70 (if you can do it) is underrated and one of the best things you can do to ensure adequate cash flow for your retirement.
I know many people here pooh-pooh that advice and tell you to take it at 62. But in my case, (I'm 61 now), if I take it next year, my check is calculated to be $2,364/mo or $28,368 a year.
If I can hold off until I'm 70 however, that amount is projected to be $4,363/mo or $52,356 a year for the rest of my life (with COLA added each year after that).
That is a HUGE difference. With the RMDs I would be required to take from my IRAs, I could live on that amount alone the rest of my life.
I don't buy the argument that you should take it while you can in case you die early. Once you die, none of that will matter anymore.
If you need to take it because you have to, or your medical condition is such that you are likely to die soon, that's a different scenario. But all healthy people should try to delay as long as possible.
Also thrown around here quite a bit is the theory of Social Security "running out money" so might as well take what you can now. I don't buy that argument either because politically speaking, that is still the third rail that politicians will not touch. Yes, the program is going to need some adjustments by 2032 or so, but that will likely be resolved by either raising the retirement age or raising the FICA income tax cap (currently around $165,000/yr).
If the doomsters are ever right and the Social Security checks stop going out because the financial system or the United States of America collapsed, well Social Security will be the least of our problems anyhow!
Thank you.
In addition, working a few years longer allows one more time to save for retirement and finally between age 62 and FRA (age 67 for most) there is a $1.00 penalty for every $2.00 income earned over $20K. So an individual making approx $65K who starts collecting SS at age 62 still working will get zero SS benefit but will be locked into the age 62 amount for life.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.