Social This can't be right (Americans saving habits)

[irish_thug]

Probably because there's such a wide range to that mobility in the US. I'm guessing in more socialized countries, jumping up a tax bracket probably pushes you past like 40 percent of the country. Although probably not what you want in those countries because you'll be taxed to bolivia if your income rises too much.

Yeah, I've been gradually moving into bolivia. Not digging it.

 

[tank666]

I have no savings because:

- 6 drinks a day from Starbucks
- 3+ meals per day via door dash
- rent
- new car
- latest phone
- all the trendy shit that I buy that influencers are peddling at the moment
-16 streaming services
-donating money to people on twitch and youtube
-onlyfans subscriptions
-high interest credit cards
- scratch off tickets
- booze

All that on an entry level salary/job.

Great least only thing there I occasionally buy is booze. These people that buy expensive coffee and insist on having the latest IPhone every year are just dumb.

 

[irish_thug]

Great least only thing there I occasionally buy is booze. These people that buy expensive coffee and insist on having the latest IPhone every year are just dumb.

Some.


Well, maybe not occasionally...

 

[Contempt]

That does not surprise me at all. Mortgages are handled very differently in Switzerland from Australia though. Much more common for people to carry mortgages into retirement But on the up side, no capital gains tax.

Carrying a mortgage into retirement would be horrible... unless they have a heap of outside assets but I assume that's unlikely if they haven't even paid off their house yet?

 

[Meatspin]

Carrying a mortgage into retirement would be horrible... unless they have a heap of outside assets but I assume that's unlikely if they haven't even paid off their house yet?

In some cases, retirement income is enough to cover it (sub 65% LVR) with disposable income to spare. In a low interest rate environment it's feasible but wouldn't be my choice.

 

[Satur9]

Great least only thing there I occasionally buy is booze. These people that buy expensive coffee and insist on having the latest IPhone every year are just dumb.

Everything in moderation is fine. People just don’t stop at occasionally. So many poor people stay poor because they are lazy, desire convenience, and/or rather spend their time on things other than learning about budgeting. I was one for a long time.

Buddy of mine would always get a mocha coffee from Starbucks. Went over his house and gave him all the things to make one at home(really he could make at least 20) with the ingredients, for less than 2 of those coffees. Some people just want convenience at the cost of saving.

 

[Contempt]

In some cases, retirement income is enough to cover it (sub 65% LVR) with disposable income to spare. In a low interest rate environment it's feasible but wouldn't be my choice.

If the retirement income keeps up with rampant inflation...

Unfortunately/fortunately my family tends to live quite old so I'm sure as fuck not taking any chances when it comes to retirement income.

 

[Meatspin]

If the retirement income keeps up with rampant inflation...

Unfortunately/fortunately my family tends to live quite old so I'm sure as fuck not taking any chances when it comes to retirement income.

Me either. Outright owned property for retirement all the way.

 

[Contempt]

Me either. Outright owned property for retirement all the way.

Which country?

 

[Meatspin]

Which country?

Australia

 

[Contempt]

Australia

It certainly is a nice place to live... and much warmer I guess, even if the taxes are absolutely extortionate.

 

[RoastBeast]

Everything in moderation is fine. People just don’t stop at occasionally. So many poor people stay poor because they are lazy, desire convenience, and/or rather spend their time on things other than learning about budgeting. I was one for a long time.

Buddy of mine would always get a mocha coffee from Starbucks. Went over his house and gave him all the things to make one at home(really he could make at least 20) with the ingredients, for less than 2 of those coffees. Some people just want convenience at the cost of saving.

I try to tell my family members that are poor to just lay low for 6 months. No concerts, no bars, no casinos and no vacations. At the end of the 6 months they'll have enough money saved up to be able to go to a few concerts or vacation without going into debt. Now that they have some money saved up, they no longer have to pay interest and the rest of their life will be cheaper from here on out.

When I say this, they act like I'm telling them to stay locked inside of a prison cell for 6 months. The act of saving money is horrifying to them.

 

[Satur9]

I try to tell my family members that are poor to just lay low for 6 months. No concerts, no bars, no casinos and no vacations. At the end of the 6 months they'll have enough money saved up to be able to go to a few concerts or vacation without going into debt. Now that they have some money saved up, they no longer have to pay interest and the rest of their life will be cheaper from here on out.

When I say this, they act like I'm telling them to stay locked inside of a prison cell for 6 months. The act of saving money is horrifying to them.

Yessir. Instant gratification versus long-term goals or success. That’s really what it is. If you cannot sacrifice some time to make your life better, I guess just keep on crying about it. That will surely help.

Now, let’s not get it twisted. Some folks’ situation is more complex than that, but, there isn’t a more easier way out of poverty. Nobody is coming to save you so you have to save yourself. It’s why it is so important to make good decisions when you are young so you don’t have such an uphill battle in the future. Unfortunately, “we” keep telling everyone to just go crazy when they are young, which is horrible advice that I took when I was young. Just a dumb thing to tell someone imo

 

[Jack Reacheround]

It very much is poor money management for the most part. Poor people by and large make repeated bad decisions and the results are very predictable.

So all of these millions of people in America each, independently, just made the same bad choices when it came to their finances, and there was no economic driver for that happening except, what, stupidity?

No. Wealth distribution is measurable, and has clearly become increasingly skewed since 1980. To suggest that wealth being transferred from the lower classes to the top 20% has no effect on the populace’s marginal propensity to save, well I would have to see very compelling evidence to prove that.

 

[Cid]

Probably because there's such a wide range to that mobility in the US. I'm guessing in more socialized countries, jumping up a tax bracket probably pushes you past like 40 percent of the country. Although probably not what you want in those countries because you'll be taxed to bolivia if your income rises too much.

Basically the jist of it. Pay more taxes than yanks so I don't have that 7x murder rate. Less homeless, less junkies, less violent criminals, better education system, better healthcare, public transport etc etc.

 

[Contempt]

Basically the jist of it. Pay more taxes than yanks so I don't have that 7x murder rate. Less homeless, less junkies, less violent criminals, better education system, better healthcare, public transport etc etc.

Worth it in that context... still doesn't mean our level of taxation isn't completely retarded though.

 

[Meatspin]

It certainly is a nice place to live... and much warmer I guess, even if the taxes are absolutely extortionate.

There are ways around it as a business owner - set up a trust, distribute income to your parents etc

 

[Contempt]

There are ways around it as a business owner - set up a trust, distribute income to your parents etc

Was complicated with family trusts before my sister died recently and now I can't do much before any money starts negatively affecting my parents pensions. *sigh* apparently back in the 90's there were so many good loopholes but all closed now :-(

No point regretting decisions made over the last couple of decades at this point. Not like I'm living below the poverty line or anything LOL

 

[Meatspin]

Was complicated with family trusts before my sister died recently and now I can't do much before any money starts negatively affecting my parents pensions. *sigh* apparently back in the 90's there were so many good loopholes but all closed now :-(

No point regretting decisions made over the last couple of decades at this point. Not like I'm living below the poverty line or anything LOL

Only other thing off the top of my head is retaining money in the company vs what you pay yourself as a taxable income. Would affect borrowing power as a downside. Of course you will want to draw the funds out at some stage but you can time that for tax efficiency. Not an accountant obviously

 

[Contempt]

Only other thing off the top of my head is retaining money in the company vs what you pay yourself as a taxable income. Would affect borrowing power as a downside. Of course you will want to draw the funds out at some stage but you can time that for tax efficiency. Not an accountant obviously

Guess I need to talk to your accountant... I've been going to the same one for over 22 years LOL