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Bills too high, paychecks too small: Why Americans aren’t saving more
First, what evidence is there this is broadly true ... and not simply another generalization based on narrow, unbound, vaguely defined survey data (like far too many editorials)?
However, let's assume that "All Americans aren't saving more (more than what?)." Is there any generation in history where workers have not chronically complained that "the bills are too high and paychecks too small"? Even IF that were generally true for some, is it because people were unaware of the size of their paycheck - when they incurred higher bills than they could afford to pay? (Of course, there are emergencies for which many are unprepared, due to a lack of an 'emergency fund.' Likewise, inflation creeps up on people living on a 'fixed income' (doesn't everyone?).
My point is that financial problems blamed on 'high bills and low income' are really a spending problem, not a saving problem. The tendency to blame something or someone else for one's problems is too often only an excuse for failing to take responsibility for one's own life (including some expectation of occasional emergencies or circumstances beyond one's control). Yes, some low-income people do their best to live within their income, and still can't keep up. (Destin, Fl. for example, is a high cost tourist destination that requires many service-sector folks who cannot generally afford to live here; -- As a result, businesses must pay more to employ them).
I'm simply not buying into all these "ain't life terrible," "the sky is falling" editorials that attempt to portray Americans as helpless victims. That's too often only a ploy of liberal politicians seeking votes in exchange for "promises to fix all of life's unfair problems with government spending."
I have limited sympathy for most people who claim they just can't pay their bills. Yes, there are people who are truly are in unavoidable dire straits (single parents and disabled people come to mind), but it's not as if someone else is racking up those variable expenses. Especially today, all a person has to do is google "how to get out of debt" and all the knowledge in the world is at their fingertips. The things that need to be done to be financially stable aren't fun or easy, but they're doable. I know, because I did them. Can't afford rent? Get a roommate. Food? Eat rice, beans, and canned tomatoes, and frozen veggies or fruit. Buy your clothes and furnishings at Value Village. Stop drinking coffee and smoking. Don't own a pet. Don't wear makeup, or buy it at the dollar store. See? Not fun...but doable. It's not the iPhones and fancy cars that do in so many people, it's the day to day expenses that seem harmless at the time.
If you're not making a lot of money, don't expect your job to be the be-all and end-all of your income. Devise some side hustles. Learn some new skills online for free. Start your own company on a shoe string. Again, all things I did.
Sure, a person call always ALWAYS find excuses for why they can't do this stuff, but in the end it just doesn't matter. Nobody cares about your finances except you, and if you don't care, don't be surprised when you're the person in the news story who says they owe $1.70 for every dollar they make.
you can see from the posts here , those who have done it have a story to tell , those who haven't have a reason to give. this is why getting involved in other peoples business is always a bad idea and most unproductive . .
worry about yourself and make your own plan . . there is just to much wasted time getting involved in what others have , don't have or their spending patterns , it only breeds arguing with no good coming out of it.
Last edited by mathjak107; 03-16-2018 at 03:15 PM..
Some people have a problem distinguishing between needs and wants.
Good post
I know a lot of people, who earn way more than what I make, who 'can not save' because it costs so much to barely get by. Yet they earn 2X to 5X what I earn, and they have toys that I have never owned.
You can not buy every toy know to man, call it 'bills', whine that you can't save, and blame it on your low pay.
worry about yourself and make your own plan . . there is just to much wasted time getting involved in what others have , don't have or their spending patterns , it only breeds arguing with no good coming out of it.
or perhaps a 20-something accidentally wanders to this thread and learns a thing or two about living beneath his means - learning from successful retirees - that's something I paid attention to when I was a 20-something (as well as reading Money, Kiplingers magazines and asking a lot of questions to old timers).
Most likely many would be in better shape at their retirement IF they hadn't listened to those who told us all that we NEED. Now we're all working to get rid of so much of that un-needed stuff.
Being a military brat makes it hard for me to understand why anyone would hesitate to move for a job that would support and enhance their families security and standard of living. I have seen SC write that several generations of his family has never lived any where else. They are stuck. There are those who will always be stuck no matter how much others try to help or motivate them. I see no remedy.
The military is much different than most jobs. Sure, it's a move - but one that is paid for and the job you're going to is pretty much known and a sure thing. The military takes care of you...corporate America does not.
The cost of living is going up much faster than wages. Although the median family income is now $59K, it has been essentially flat since 1999. That's 19 years!
That's not entirely clear.
Moreover, wages are part of total compensation - but not all of it. Other major slices of the total compensation pie include employer-paid health insurance and other fringe benefits.
One reason wages have not gone up faster is that employers have been funneling compensation increases into health insurance premiums which have been going up much more than the rate of inflation.
At the end of the day, productivity has been flat for the past 10 to 15 years. That is, output divided by labor input has not been increasing. If we can somehow improve productivity in a meaningful way, wages will follow.
I chalk some of this up to low ambition. I am constantly surprised by the number of people without a long term career and salary plan.
I have a spreadsheet that I check regularly that projects out my desired salary between now and retirement. When annual raises are giving me enough salary growth, I just change to a higher paying job.
I have deliberate plans. I don't just get a job and hope for the best. My first job out of college paid $26k and I've been working my way up ever since.
Sounds like you are on the right track.
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