Are we in a minority?

**bjl584** · 03-09-2010, 09:13 AM

That's scary. I think there needs to be a more proactive approach to saving, budgeting, and investing taught in our schools. What good is a person that can do advanced Calculus but can't balance a checkbook?

**fruitbowlk** · 03-09-2010, 09:16 AM

I feel blessed to be in the Minority.

**wnlbutterfly** · 03-09-2010, 09:26 AM

I believe it. Preparing taxes at a tax office we ask each client if they have a checking account and if they have a savings account (in case they want to direct deposit their refunds). I would say maybe 60% have a checking (one of the reasons we do a debit card at our office, a lot of people don't have a way to cash a check without major fees), and maybe 20% have a savings account. No kidding!

**disneysteve** · 03-09-2010, 09:48 AM

Jim, I'm not surprised at all. I have no doubt that those stats are accurate. We often hear that 60% of Americans live paycheck to paycheck. That would mesh just right with 43% having no retirement savings. And then 27 have less than $1,000. Heck, I probably have more cash in my wallet right now than 15-20% of the population has to their names. Some of these people are truly poor but most simply live at or beyond their means and make no attempt at all to control their spending, budget or save.

**bjl584** · 03-09-2010, 10:12 AM

Originally posted by disneysteve View Post

Jim, I'm not surprised at all. I have no doubt that those stats are accurate. We often hear that 60% of Americans live paycheck to paycheck. That would mesh just right with 43% having no retirement savings. And then 27 have less than $1,000. Heck, I probably have more cash in my wallet right now than 15-20% of the population has to their names. Some of these people are truly poor but most simply live at or beyond their means and make no attempt at all to control their spending, budget or save.

My one friend falls into the "living beyond their means and making no attempt to budget or save" column to a tee. He earns on average $75K a year but has nothing to show for it. All of his bills are late, his utilities get shut off on a routine basis, his car is always in danger of being reposessed, and he has no cash on hand except on payday. All this while making considerably more than me.

**disneysteve** · 03-09-2010, 10:27 AM

Originally posted by bjl584 View Post

My one friend falls into the "living beyond their means and making no attempt to budget or save" column to a tee. He earns on average $75K a year but has nothing to show for it.

Important point. I think many tend to assume that all the folks struggling to make ends meet earn sub-par incomes. In fact, higher income is no guarantee of financial stability. Bad habits are bad habits no matter if you earn 20K, 50K, 75K or 250K. If you aren't committed to living below your means, more income won't help you. Lots of people in that situation, living paycheck to paycheck, think that if they could just earn more money, all of their problems would be solved. The reality is that as their incomes increase, their problems just get bigger if they do nothing to correct the underlying spending problems.

**am_vanquish** · 03-09-2010, 11:30 AM

I wish I could say I was surprised by that stat ... but I'm not. And every time I see a statistic like this all I can think about is how horrible my tax rates are going be when these people approach retirement and expect an entitlement program like Social Secuirty to support them.

It's quite depressing actually: I can't believe these people are living it up, spending every dime they have on cool shiny stuff ... and it's slowly but surely eating away at my future paychecks and capital gains. :sigh:

**Radiance** · 03-09-2010, 11:58 AM

What I see around me are two problems:

One is a desire for immediate satisfaction.
Taking a vacation NOW is 10 times more important that having any savings at all for LATER

Second is peer pressure, when I got pregnant I got pressured for months for me to change my 3 year old Honda civic for a Van. And I am talking about real pressure, some got offended that I would say no each time.

The same with a lot of other baby items I refused to spend money on. (crib, stroller, changing table and, of course a theme decorated nursery) I didnt need, nor did I want any of those things, but most my friends bought all, including a Van because they were told to by "friends and family" that you HAVE TO. because babies NEED A LOT.

Keeping up with the Jonhsons I think it is called?

I am a renegade so, I am saving and I am only using 75% of my salary. No vacations planned for a few years. And my Honda Civic is doing just fine, a little messy inside with toys, juice boxes and cracker crumbles though.

**disneysteve** · 03-09-2010, 12:02 PM

Originally posted by Radiance View Post

What I see around me are two problems:

One is a desire for immediate satisfaction.
Taking a vacation NOW is 10 times more important that having any savings at all for LATER

I love to travel but this is a big pet peeve of mine. Lots of people will take a trip on credit, take a year to pay it off, then immediately take another trip on credit and repeat the cycle. For some reason, it just doesn't occur to them to SAVE for a year and then take the trip with cash. Then SAVE for another year and take the trip with cash. The end result would be the same - an annual vacation - but they'd be doing it the responsible way.

**Radiance** · 03-09-2010, 12:11 PM

Agree, what is worse, the people around me are already living paycheck to paycheck, and on debt so they cannot even save for a vacation, to top it off they take the vacation anyway on MORE credit. It is crazy, I was one of them.... very stupid, I know. I am learning and I would never do that again .

I love travel too, and I will eventually be able to have a travel fund to build and take vacation from.

**Snodog** · 03-09-2010, 12:16 PM

I guess they will have to work until they drop or else severely change their lifestyle to live on social security.

Seems a good portion of the population just can't see beyond today.

**Snodog** · 03-09-2010, 12:24 PM

Originally posted by Radiance View Post

Second is peer pressure, when I got pregnant I got pressured for months for me to change my 3 year old Honda civic for a Van. And I am talking about real pressure, some got offended that I would say no each time.

I'll admit I have a low tolerance for crap like this. Some people are such sheep.

Tell them they are killing the planet and their finances and should drive Civics like you and see how they like it!

**disneysteve** · 03-09-2010, 12:30 PM

I can understand peer pressure in teens when people are trying to find their way in life and fit it with others, but by adulthood, you should be past that garbage. I really don't give a darn what other people think of my house, my car, my clothes, where I eat, where I vacation, etc. I do what works for me and my family. I've had people ask why I don't get a new car. My response is to ask if they are going to pay for it. Until I find someone who says yes (I'm still searching), I'll keep driving my 13-year-old paid-for Toyota.

**Radiance** · 03-09-2010, 12:34 PM

I agree again!, and this is a sin I have not been guilty off, not even on my irresponsible debt years.
However, it happens a lot.

More than anything, I get annoyed and I tell them "don't you not know me?" to which they respond, upset "oh, you have to do everything different!" well, it seems to me different is better than what MOST people do.

So I guess we are lucky and blessed to be part of the saving minority.

Are we in a minority?