40% of Americans don’t have $400 in the bank for emergency expenses

[boneyard1962]

Originally Posted by thriftylefty

I use my credit card exactly like I use a withdrawal from my bank account. I spend it and put it right back. How is that not the same?

Thats all well and good but obviously that isn't the case with the 40% who lack the self control to save $400.

[BoBromhal]

Originally Posted by InformedConsent

Nope. Bezos only earns a salary of $81,840/year. Other CEOs are similarly paid rather ordinary or surprisingly low salaries. Zuckerberg (Facebook) earns $1/year. Larry Page and Sergey Brin (Google cofounders) earn $1/year. Jack Dorsey (Twitter) earns $1.40/year. Larry Ellison (Oracle)? $1/year. Elon Musk earns minimum wage only because California state law requires it. Etc.

I'm really not sure why you're "fighting" me on this. To me, it seems like all you accomplish is lend credence to the ignorant and misinformed.

Obviously Bezos is COMPENSATED more than $81K/year. His total taxable income is surely > $81K. I don't know any details but wouldn't this "24 hour security" mentioned be counted as some compensation?

I *assume* the C-suite exec isn't usually the founder of one of a handful of Silicon Valley companies. Are there more people that AREN'T SV company founders that fit in the top bracket than ARE? Surely, there AREN'T.

Here's a more common example (to the extent there's 100 people in the top 5 banks whose income exceeds $500K):

Wells Fargo CEO Tim Sloan got a 5 percent pay raise for leading the troubled bank last year.

The executive received $18.4 million, including a $2.4 million salary, $14 million in stock awards and $2 million in incentive awards, according to a regulatory filing. That compares to the $17.5 million he earned for 2017, which was a 36 percent increase from the previous year.

pretty much that $2.4MM salary alone puts him in the top marginal bracket. Who knows what the $2MM incentives were. But how was he taxed on the 75% of his compensation that was stock?

[thriftylefty]

Originally Posted by boneyard1962

Thats all well and good but obviously that isn't the case with the 40% who lack the self control to save $400.

Many of these people have what I would describe as a mild self destructive nature. To make god money and not save any of it is a little defeatist. Especially people that I know who hate their jobs. Their behavior is counter productive to their own desire. I think many people from middle eastern and far eastern cultures do better than Americans in the USA because they think differently about money.

[kell490]

Most of these ultra rich have their income paid in a way that it is taxed using long term capital gains. When they say their income tax is high it's usually on very small amount of money like $81k a year. This was something which Mitt Romney was scrutinized over when he ran for president against Obama released his tax records his effective tax rate on 20 million dollars was around 14.1% in one year 2010. Loop holes which were put in the tax code by lobbyist.

https://www.factcheck.org/2012/08/do...axes-than-you/

[KathrynAragon]

Originally Posted by ansible90

If you are stuck in a minimum wage job, you have to get yourself unstuck and go look for a better paying job. It takes effort.

Right, and less than 1 percent of minimum wage workers are adults working full time. The vast majority are inexperienced teens working part time jobs. Hey, you get what you pay for, right?

[KathrynAragon]

Originally Posted by ansible90

The problem with looking at just savings accounts is that many people have their "savings" in retirement accounts or investment accounts or CDs, or savings bonds. I haven't had a bank savings account in 20 years. With such low interest rates, money in savings accounts doesn't even keep up with inflation. I think that skews the numbers.

Oh I agree - I think people are just talking about truly liquid money though. That they could get their hands on today.

[Vector1]

Originally Posted by Chowhound

It's an example of the mental gymnastics I was talking about upthread. These weird responses people are posting to explain or justify why they are not being able to save 10-15 bucks a pay period as a working adult.

It ain't that hard really, it just requires a little discipline.

No doubt, and it is just a matter of developing habits to save.
For example having a change jar near where you take off your pants at the end of the day. Whatever pocket change you have gets deposited whether it be two pennies or two dollars worth. You do not touch that jar until it is almost full, and whatever monies have added up (sometimes $50+ dollars) get deposited in the bank.
Taking 10% of your take home pay into an account you do not touch. It might mean not eating out or going to the movies, so you bag a lunch and watch a movie at home on TV. Buy a six pack of beer to drink at home, rather than buy one beer for the same amount of money at a bar.

Those are just a few ways to save up a few hundred dollars toward a rainy day. Then as you increase your income, you increase your savings.
Remember some of us were brought up to give 10% to charity via the church. Back when you struggle, you hold onto that money in a separate place (unless you go to services every week). If you need to use that money for a necessity, then so be it, you can donate more when you are back on your feet. However if you do not put the money away, you will typically not donate anything throughout the year.

The point being that cutting back on non essentials (sodas, snacks, etc.) not only saves you money, it is healthier for you in the long run.
Heck I was working so much I didn't have time to watch much TV. Nor could I have afforded cable TV, so I just used a basic antenna to get the 4-5 channels it could reach.
When I could afford cable, I only got basic with minimum monthly charges, and so on.
Then when you start getting older, you start saving/investing for your retirement.

It is a matter of discipline, planning, and good habits.


`