CDZ Do you make money savings?

[Politico]

Half of America doesn t save any money - Business Insider

Nearly half of the US households don’t want to save money for tomorrow or have too low income to make savings. I don’t believe it can be true. Your savings secure your future. Do you save some part of your income? Even if one saves ten percent of weekly earnings for the nearest future, it’s saving too.

Half of America doesn't have any money to save.

Fixed it for ya.

 

[FA_Q2]

Half of America doesn t save any money - Business Insider

Nearly half of the US households don’t want to save money for tomorrow or have too low income to make savings. I don’t believe it can be true. Your savings secure your future. Do you save some part of your income? Even if one saves ten percent of weekly earnings for the nearest future, it’s saving too.

Half of America doesn't have any money to save.

Fixed it for ya.

Except that is a blatant lie.
It is less about what you make and more about what you spend. There are a whole lot of people that make 6 figures but are really poor with a lot of crap because of credit and debt.

 

[there4eyeM]

Ten percent is a huge percentage, especially for a significant part of the population. Saving is discouraged by the presence of, and threat of ever greater, inflation.

I come from a time when people did save up for purchases and the future, but easy credit and the poor example of government deficit spending taught people to live on credit to a dangerous degree. It may be too late for savings to do much.

One solution would be to spend on things that would reduce costs in the future. Solar panels, for example. Electric cars. Bicycles. Then, one might get to a point where one could 'save' an amount that meant something.

 

[FA_Q2]

Ten percent is a huge percentage, especially for a significant part of the population. Saving is discouraged by the presence of, and threat of ever greater, inflation.

I come from a time when people did save up for purchases and the future, but easy credit and the poor example of government deficit spending taught people to live on credit to a dangerous degree. It may be too late for savings to do much.

One solution would be to spend on things that would reduce costs in the future. Solar panels, for example. Electric cars. Bicycles. Then, one might get to a point where one could 'save' an amount that meant something.

That is why the term ‘savings account’ is an oxy moron.
You don’t save in a savings account – you lose in one. If you want to save you need to place it in something that earns more than inflation. Mutual funds are one of the easiest as you don’t even have to watch those. What you are talking about is even better if you screw your head on right and research what you are doing properly.

 

[MHunterB]

By definition, 'half of America' is less intelligent, etc than 'average' - so the number shouldn't be any real surprise. The whole idea of 'retirement' is a relatively new phenomenon anyway. So is living away from one's descendants....

My generation (boomers) had it fairly easy: we've had the opportunity to acquire *both* pensions and 401-K's. Of course the latter was 'too good to be true' - some degree of professional support AND a partial company match! - and yet it was still more cost-effective for companies so the pensions got phased out.

 

[|electric|foxy|]

I use payroll card only, no need to have other accounts and I save money at home.

 

[Flopper]

Forget the rest of the crap. Independence and security are the best things money can buy.

This is really the bottom line, or should be.

Those who do not plan for their own future, their retirement, catastrophic illness, their children's education are just asking for failure.

Its a not a question of liberal or conservative, left or right. Its about taking care of yourself and your family.

Very true. I have seen it time after time in my own family and families of friends. There is just not enough money to save or build a retirement nest egg. In reality, this means there is not enough money available after paying for all the necessities which include expenditures for summer camp for the kids, a replacement of the old junk heap, dues for a health club, a new smartphone and a thousand luxuries that become necessities.

What a lot of people don't realize it's not the amount you save that's so important, it's the habit of saving. If you save a little money on a regular basis when you're young with a low income, you're very likely to continue saving throughout your life.

 

[Flopper]

Ten percent is a huge percentage, especially for a significant part of the population. Saving is discouraged by the presence of, and threat of ever greater, inflation.

I come from a time when people did save up for purchases and the future, but easy credit and the poor example of government deficit spending taught people to live on credit to a dangerous degree. It may be too late for savings to do much.

One solution would be to spend on things that would reduce costs in the future. Solar panels, for example. Electric cars. Bicycles. Then, one might get to a point where one could 'save' an amount that meant something.

That is why the term ‘savings account’ is an oxy moron.
You don’t save in a savings account – you lose in one. If you want to save you need to place it in something that earns more than inflation. Mutual funds are one of the easiest as you don’t even have to watch those. What you are talking about is even better if you screw your head on right and research what you are doing properly.

Until you have enough in savings to see you through a few bad months, you should never consider investing in anything that isn't liquid. One out of every 4 American families has no emergency funds. This means they're dependent on this months paychecks to put food on the table or pay their rent or mortgage.

 

[Donald Polish]

Half of America doesn t save any money - Business Insider

Nearly half of the US households don’t want to save money for tomorrow or have too low income to make savings. I don’t believe it can be true. Your savings secure your future. Do you save some part of your income? Even if one saves ten percent of weekly earnings for the nearest future, it’s saving too.

I do not save because i have nothing to save. Taxes are too high like many prices are. What kind of security are you speaking about? Economical system of America is heading to a collapse and we are not supposed to save but spend millions.

 

[FA_Q2]

Ten percent is a huge percentage, especially for a significant part of the population. Saving is discouraged by the presence of, and threat of ever greater, inflation.

I come from a time when people did save up for purchases and the future, but easy credit and the poor example of government deficit spending taught people to live on credit to a dangerous degree. It may be too late for savings to do much.

One solution would be to spend on things that would reduce costs in the future. Solar panels, for example. Electric cars. Bicycles. Then, one might get to a point where one could 'save' an amount that meant something.

That is why the term ‘savings account’ is an oxy moron.
You don’t save in a savings account – you lose in one. If you want to save you need to place it in something that earns more than inflation. Mutual funds are one of the easiest as you don’t even have to watch those. What you are talking about is even better if you screw your head on right and research what you are doing properly.

Until you have enough in savings to see you through a few bad months, you should never consider investing in anything that isn't liquid. One out of every 4 American families has no emergency funds. This means they're dependent on this months paychecks to put food on the table or pay their rent or mortgage.

That is true but then again that padding that you create is not 'savings.' At least I would not call it that. That is an emergency fund and everyone should have something along those lines. It is rather telling that so few actually do. It is the society that we live in these days – it is about what we want right now rather than actually saving to acquire it.

 

[FA_Q2]

Half of America doesn t save any money - Business Insider

Nearly half of the US households don’t want to save money for tomorrow or have too low income to make savings. I don’t believe it can be true. Your savings secure your future. Do you save some part of your income? Even if one saves ten percent of weekly earnings for the nearest future, it’s saving too.

I do not save because i have nothing to save. Taxes are too high like many prices are. What kind of security are you speaking about? Economical system of America is heading to a collapse and we are not supposed to save but spend millions.

If you do not make enough to save then you are not paying income taxes.

 

[Flopper]

"When I was young I use to think money was the most important thing in life; now I am old, I know it is".
-Oscar Wilde

 

[KokomoJojo]

Half of America doesn t save any money - Business Insider

Nearly half of the US households don’t want to save money for tomorrow or have too low income to make savings. I don’t believe it can be true. Your savings secure your future. Do you save some part of your income? Even if one saves ten percent of weekly earnings for the nearest future, it’s saving too.

but saving is extremely inflationary. arent you a patriot?

 

[Flopper]

Half of America doesn t save any money - Business Insider

Nearly half of the US households don’t want to save money for tomorrow or have too low income to make savings. I don’t believe it can be true. Your savings secure your future. Do you save some part of your income? Even if one saves ten percent of weekly earnings for the nearest future, it’s saving too.

but saving is extremely inflationary. arent you a patriot?

Increased saving reduces consumption and demand and thus price. If savings are dramatically are reduced, it will reduce the banks ability to loan money which is a damper on the economy.

 

[oldfart]

Half of America doesn t save any money - Business Insider

Nearly half of the US households don’t want to save money for tomorrow or have too low income to make savings. I don’t believe it can be true. Your savings secure your future. Do you save some part of your income? Even if one saves ten percent of weekly earnings for the nearest future, it’s saving too.

but saving is extremely inflationary. arent you a patriot?

Increased saving reduces consumption and demand and thus price. If savings are dramatically are reduced, it will reduce the banks ability to loan money which is a damper on the economy.

Right now, the banking system is awash in a couple trillion dollars of excess reserves; I don't think a fall in savings will make any difference in their funds available to loan at all. Prices are to some degree sticky, so I don't see a fall in consumption as driving prices down to entirely compensate. Thus a major decrease in demand would trigger both a bit of deflation and a substantial fall in production. It's the classic "Paradox of Thrift", which is especially bad at the zero lower bound where we are at.

 

[Flopper]

Half of America doesn t save any money - Business Insider

Nearly half of the US households don’t want to save money for tomorrow or have too low income to make savings. I don’t believe it can be true. Your savings secure your future. Do you save some part of your income? Even if one saves ten percent of weekly earnings for the nearest future, it’s saving too.

but saving is extremely inflationary. arent you a patriot?

Increased saving reduces consumption and demand and thus price. If savings are dramatically are reduced, it will reduce the banks ability to loan money which is a damper on the economy.

Right now, the banking system is awash in a couple trillion dollars of excess reserves; I don't think a fall in savings will make any difference in their funds available to loan at all. Prices are to some degree sticky, so I don't see a fall in consumption as driving prices down to entirely compensate. Thus a major decrease in demand would trigger both a bit of deflation and a substantial fall in production. It's the classic "Paradox of Thrift", which is especially bad at the zero lower bound where we are at.

I agree, that less savings now would have little effect on loans. However the current glut of money in banks now is not the norm.

 

[oldfart]

Half of America doesn t save any money - Business Insider

Nearly half of the US households don’t want to save money for tomorrow or have too low income to make savings. I don’t believe it can be true. Your savings secure your future. Do you save some part of your income? Even if one saves ten percent of weekly earnings for the nearest future, it’s saving too.

but saving is extremely inflationary. arent you a patriot?

Increased saving reduces consumption and demand and thus price. If savings are dramatically are reduced, it will reduce the banks ability to loan money which is a damper on the economy.

Right now, the banking system is awash in a couple trillion dollars of excess reserves; I don't think a fall in savings will make any difference in their funds available to loan at all. Prices are to some degree sticky, so I don't see a fall in consumption as driving prices down to entirely compensate. Thus a major decrease in demand would trigger both a bit of deflation and a substantial fall in production. It's the classic "Paradox of Thrift", which is especially bad at the zero lower bound where we are at.

I agree, that less savings now would have little effect on loans. However the current glut of money in banks now is not the norm.

I agree the large amount of liquidity in bank reserves is not the norm. It's the legacy of the waves of quantitative easing that proved that monetary policy has limited effectiveness at the zero lower bound and is not a replacement for expansionary fiscal policy. A year ago there was a lively debate about how difficult it might be for the Fed to unwind this vast amount of reserves and return to a time of more traditional monetary policy. The consensus seemed to be that the project would not be difficult and would create no great unforeseen problems. Personally, I don't think a policy to soak up reserves is really necessary; an expanding economy and expansionary fiscal policy would automatically reduce these balances.

What's your opinion? Do you see a problem with this large of a stock of excess reserves?

 

[Flopper]

Half of America doesn t save any money - Business Insider

Nearly half of the US households don’t want to save money for tomorrow or have too low income to make savings. I don’t believe it can be true. Your savings secure your future. Do you save some part of your income? Even if one saves ten percent of weekly earnings for the nearest future, it’s saving too.

but saving is extremely inflationary. arent you a patriot?

Increased saving reduces consumption and demand and thus price. If savings are dramatically are reduced, it will reduce the banks ability to loan money which is a damper on the economy.

Right now, the banking system is awash in a couple trillion dollars of excess reserves; I don't think a fall in savings will make any difference in their funds available to loan at all. Prices are to some degree sticky, so I don't see a fall in consumption as driving prices down to entirely compensate. Thus a major decrease in demand would trigger both a bit of deflation and a substantial fall in production. It's the classic "Paradox of Thrift", which is especially bad at the zero lower bound where we are at.

I agree, that less savings now would have little effect on loans. However the current glut of money in banks now is not the norm.

I agree the large amount of liquidity in bank reserves is not the norm. It's the legacy of the waves of quantitative easing that proved that monetary policy has limited effectiveness at the zero lower bound and is not a replacement for expansionary fiscal policy. A year ago there was a lively debate about how difficult it might be for the Fed to unwind this vast amount of reserves and return to a time of more traditional monetary policy. The consensus seemed to be that the project would not be difficult and would create no great unforeseen problems. Personally, I don't think a policy to soak up reserves is really necessary; an expanding economy and expansionary fiscal policy would automatically reduce these balances.

What's your opinion? Do you see a problem with this large of a stock of excess reserves?

No, I don't see a problem. There doesn't seem to be any tendency for business to cut back borrowing.

 

[Wyatt earp]

I was homeless at 16 and decided then I would never be homeless again. While working, I was fanatical about saving money and investing. The result is that I am now retired and comfortable.

What Moonglow said above is true - always pay yourself first.

There have been many times when saving was hard to do but I found ways to do it. For example, I never spent quarters or $5 bills. Also, I never spent "found" money. Probably sounds silly but it worked and it still does. We keep a separate account for our business income and expenses as well as travel. Any found money goes into that account.

Don't bother putting your savings in a savings account because the interest is non-existent but I do recommend keeping the money separate so you're not tempted to spend it.

I was real dumb when I was young, I always had to buy $100 sneakers, mustang and a porsche, I never saved. It took me to my 40s to realize I might not die young, so I have my 401k I put in the max 7% , I have two debit cards that my payroll check is direct deposit, one for bills @60 and one for extras @40%
I have a safe at my house that when it reaches $2,000 I will Take out a grand and buy some physical gold or silver and put it into my safe deposit box at my bank.
I also have two envelopes stashed I will put in $20 bucks a piece a week, one for my next vacation and one for the next goodie I want to buy.

I just buy used pickup trucks now, I shop at thrift stores, the only clothes I will buy new is Underwear, socks ,baseball hats and jeans

 

[Toro]

No.

My savings is my inventory of fine, single malt scotch.

That will come in handy during the Zombie Apocalypse.