1/3 of Americans earning $150,000+ a year say they're living paycheck to paycheck

submitted by hfxB0oyA from finance.yahoo.com

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[–]Credit2Saidit 6 insightful - 1 fun6 insightful - 0 fun7 insightful - 1 fun -  (12 children)

This is absolutely hilarious. Apparently, no one knows what "savings" is anymore. Save money for things you need (or may need on a rainy day)? Nah. Just borrow the money at an absurd interest rate and make minimum payments each month.

Doesn't matter if you make $15,000 a year or $150,000. If you don't know how to exercise restraint in spending and prudence in SAVING, you're going to have a bad time.

[–]Dragonerne 6 insightful - 1 fun6 insightful - 0 fun7 insightful - 1 fun -  (6 children)

The reason for this is that the current economical system privileges that sort of people due to inflation. If you're not going into insane debt, then you're losing money. A few decades ago, you could buy candy for a few cents.
The 100 dollar an hour you earn now? It will be worth less than a dollar a few decades from now. Have fun saving.

[–]Jesus 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

But you have to take into account what that amount could purchase in that time period. I earned around 22 dollars in today's money working construction with father in 1970's at 13. Meaning I was making well over today's min wage as a 13 year old. It was 5-7 dollars at the time, something like that, but it bought much more. Now minimum wage is like the equivalent of 2 dollars back then.

[–]newguy 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Yes if people are offered the option to have a $500k house with zero down, where they can pocket all the gains in equity... of course they're going to take that. They'd be stupid not to.

Of course the flip side is if the housing market crashes, then you can be underwater and owe more than it's worth...

[–]Credit2Saidit 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (3 children)

If you're not going into insane debt, then you're losing money.

No, if you're going into insane debt instead of saving, paying down your existing debt, and refraining from incurring more debt, you're losing far more than you would if you simply have savings that depreciate due to inflation.

Have fun saving.

Oh, I do and will. But you have fun trying to pay off that insane debt with ever increasing interest/monthly payments with money that's ever decreasing in value.

[–]Dragonerne 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

You don't get it. In this economy, you don't pay down your existing debt. You want as much debt as humanly possible.

than you would if you simply have savings that depreciate due to inflation

Yes this is how it works in a normal healthy economy, but in the one you live in, the opposite is true. Your savings depreciate RELATIVE to the assets that my debt has bought.
That means that while you saved 100k every year and I pay 100k in interest every year for 2000k in debt/assets. After 10 years, you will have 1000k, while I will have 4000k assets and 2000k debt, meaning my wealth will be TWICE of yours. After 20 years, my wealth will be 4x yours, after 30 years, 8x yours.

Have fun saving

[–]Credit2Saidit 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

Rather than pointing out the glaring errors/assumptions in your calculations, I'll just point out that debt eventually has to be repayed and, therefore, the assets purchased with that debt are always at risk.

I own MY assets free and clear. No worries about having to make ever increasing monthly payments on them, ever increasing interest rates putting paying off those debts further out of reach, and so on.

So, yes, I'll have fun saving and enjoy the peace of mind that goes along with it. May your strategy do the same for you.

[–]Dragonerne 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

So, yes, I'll have fun saving and enjoy the peace of mind that goes along with it.

Yes, peace of mind is a good reason to not go into debt.

However economically smart? No. It is not.

No worries about having to make ever increasing monthly payments on them, ever increasing interest rates putting paying off those debts further out of reach, and so on.

It's not out of reach. You can always sell your assets that increase in value at a higher rate than the debt you have.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

They don’t know what living modestly is.

Cooking at home.

And inflation is real.

They are draining all our savings, then they will hit us hard.

[–]hfxB0oyA[S] 1 insightful - 2 fun1 insightful - 1 fun2 insightful - 2 fun -  (1 child)

Yep, people trying to live Instagram lives instead of building something real and affordable that they can hold onto into a healthy and peaceful old age.

[–]Jesus 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

That's not how the majority work. Get off 4chan Mossad or twitter

[–]Jesus 1 insightful - 2 fun1 insightful - 1 fun2 insightful - 2 fun -  (0 children)

Borrow money from Jews lend at credit pay back in work.

[–]Alienhunter 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Savings kind of are pointless in an inflationary economy. You save money? Great. It's literally worth less than it was before and you're worse off saving it than you would have been had you spent it for something else.

Doesn't mean most people don't understand the value of liquidity or have rediculously small rainy day funds because they are overextending on stuff they don't need. It's not so much about saving money as it's about budgeting your expenses smartly and investing in safe long term options. Most people are retarded though.