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Should really say "49% of the 1000 people we called don't have savings"
I do not believe that is a large enough sample size to be completely accurate here.
Given current interest rates, anybody who keeps more than a few thousand dollars for immediate needs is in a savings account throwing away money rather than saving it. You park your real savings in CDs, IRAs, 401k accounts etc because you'll get raped keeping it in savings accounts. I currently have like $8k in my saving accounts only because the contractor is coming next week to do work on my house. Otherwise, I have maybe $2-3k at most.
Given current interest rates, anybody who keeps more than a few thousand dollars for immediate needs is in a savings account throwing away money rather than saving it. You park your real savings in CDs, IRAs, 401k accounts etc because you'll get raped keeping it in savings accounts. I currently have like $8k in my saving accounts only because the contractor is coming next week to do work on my house. Otherwise, I have maybe $2-3k at most.
Per the census you'd be off on your assumptions because a large percentage of people can't come up with 2,000 if they needed to
I'm surprised the percentage of people with no significant savings is so low. I would have thought it would be higher. According to the census bureau, the median net worth of the middle quintile (households in the 40% to 60% earnings bracket) is about $70K.
Citation: https://www.census.gov/people/wealth...0to%202011.pdf
Here's a fairly recent CNN headline that says 76% of households live paycheck-to-paycheck with no emergency fund. I suppose some of those have a 401(k)/IRA and a bit of equity in their house but the house isn't liquid if you lose your job and you get slaughtered with taxes penalties if you tap your 401(k)/IRA early. 76% of Americans are living paycheck-to-paycheck - Jun. 24, 2013
I looked all OVER my bank statement, but can't find where my bank gives me more interest on my money because I own instead of rent.
Low interest rates give homebuyers greater purchasing power. The increased purchasing power of home buyers increases the equity in your home, while (again) doing squat for renters until they become home buyers.
Americans spent 5.8% of their after-tax income paying interest on mortgages, credit cards, car loans and other debt, according to the latest data from the Bureau of Economic Analysis. That's the smallest share since 1977 and a steep drop from a record high of 9.1% in 2007.
Household interest payments fell to an average of $469 per month at the end of last year, down from a peak of $728 in 2007, after adjusting for inflation. That equals $3,100 a year.
Three-fourths of the interest savings stem from falling rates
Mortgage interest payments are down 30% from their 2007 peak. Interest payments on other debt, such as credit cards and car loans, are down 50%.
all right from the reports at the bureau of economic analysis.
if rates were higher it means inflation would be higher so your expenses would be higher .
I love working, do not ever want to retire but this statement from the OP does not surprise me, most every city I travel too people live well above their means to "impress people". I rather be financially secure than "impress people" with cars.
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