Comments on: The Dismal Savings Rate in America http://queercents.com/2007/02/05/the-dismal-savings-rate-in-america/ We're here, We're queer, and We're not going Shopping without Coupons Wed, 10 Mar 2010 04:23:21 -0700 http://wordpress.org/?v=2.9.1 hourly 1 By: Queercents » Blog Archive » “Keep the Change” from Bank of America: Can change add up to savings? http://queercents.com/2007/02/05/the-dismal-savings-rate-in-america/comment-page-1/#comment-110380 Queercents » Blog Archive » “Keep the Change” from Bank of America: Can change add up to savings? Mon, 03 Mar 2008 15:08:45 +0000 http://www.queercents.com/2007/02/05/the-dismal-savings-rate-in-america/#comment-110380 [...] a few mind games to get me to save. What about you? Or do you have any general comments about the dismal savings rate in [...]<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-110380">0</span> <small>(to vote for this comment, please visit the site)</small></p> [...] a few mind games to get me to save. What about you? Or do you have any general comments about the dismal savings rate in [...]

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]]> By: Queercents » Blog Archive » Queercents Family Values: What Will You Teach Your Child About Money? http://queercents.com/2007/02/05/the-dismal-savings-rate-in-america/comment-page-1/#comment-86286 Queercents » Blog Archive » Queercents Family Values: What Will You Teach Your Child About Money? Tue, 04 Dec 2007 15:12:36 +0000 http://www.queercents.com/2007/02/05/the-dismal-savings-rate-in-america/#comment-86286 [...] here’s the scoop: don’t rely on a partner, a parent (ahem), or any other external source. Don’t debt. “Compound interest is the most powerful force in the universe,” said Albert Einstein. [...]<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-86286">0</span> <small>(to vote for this comment, please visit the site)</small></p> [...] here’s the scoop: don’t rely on a partner, a parent (ahem), or any other external source. Don’t debt. “Compound interest is the most powerful force in the universe,” said Albert Einstein. [...]

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]]> By: Queercents » Being “Middle Class” is burying us! http://queercents.com/2007/02/05/the-dismal-savings-rate-in-america/comment-page-1/#comment-21958 Queercents » Being “Middle Class” is burying us! Wed, 07 Mar 2007 18:35:19 +0000 http://www.queercents.com/2007/02/05/the-dismal-savings-rate-in-america/#comment-21958 [...] Maybe earning the 'median' income isn't middle class? Or maybe the middle class is confused, and think it is grander than it is. Either way, we need a reality check, to live below our means and actually improve our financial situation versus allowing our fantasies to bury any chance of a secure financial future. [...]<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-21958">0</span> <small>(to vote for this comment, please visit the site)</small></p> [...] Maybe earning the ‘median’ income isn’t middle class? Or maybe the middle class is confused, and think it is grander than it is. Either way, we need a reality check, to live below our means and actually improve our financial situation versus allowing our fantasies to bury any chance of a secure financial future. [...]

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]]> By: Queercents » Personal Finance in the Absence of Patience http://queercents.com/2007/02/05/the-dismal-savings-rate-in-america/comment-page-1/#comment-16699 Queercents » Personal Finance in the Absence of Patience Tue, 13 Feb 2007 16:05:44 +0000 http://www.queercents.com/2007/02/05/the-dismal-savings-rate-in-america/#comment-16699 [...] I don't necessarily want to have more money for consumption of excess, but I do think about how lovely it would be to have a house someday, my own business, and enough money in the bank to weather any possible emergency. Over time, I've developed enough skills and work experience to command a higher salary, but sometimes I get discouraged and feel that I'm not going to reach my goals fast enough at the rate I'm earning and saving. At times it feels like I'm working hard and sacrificing much for a pipe dream. As Nina points out, there are plenty of people like me having trouble saving. [...]<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-16699">0</span> <small>(to vote for this comment, please visit the site)</small></p> [...] I don’t necessarily want to have more money for consumption of excess, but I do think about how lovely it would be to have a house someday, my own business, and enough money in the bank to weather any possible emergency. Over time, I’ve developed enough skills and work experience to command a higher salary, but sometimes I get discouraged and feel that I’m not going to reach my goals fast enough at the rate I’m earning and saving. At times it feels like I’m working hard and sacrificing much for a pipe dream. As Nina points out, there are plenty of people like me having trouble saving. [...]

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]]> By: UncleOxidant http://queercents.com/2007/02/05/the-dismal-savings-rate-in-america/comment-page-1/#comment-15834 UncleOxidant Wed, 07 Feb 2007 22:09:46 +0000 http://www.queercents.com/2007/02/05/the-dismal-savings-rate-in-america/#comment-15834 Chris: Sure, buying a house could be considered a method of saving, however, lots of people in the last few years have been borrowing the equity out of their homes to do things like buy cars, vacations, etc. (basically, they've been trying to maintain their lifestyle as inflation goes up while incomes haven't been rising) Now that home prices are softening and even going down in some areas the 2nd-mortgage-piggy bank isn't as accessable. That and the fact that lots of people already have 2nd and 3rd mortgages so that there's basically no equity left... Anyway, if someone isn't buying a house they'd be renting. You've got to have someplace to live, thus the logic for making it an expenditure. The other thing to remember is that 2nd mortgages (or mortgages in general) are really loans based on your salary, not on the property itself (that's just the collateral). Even if you own a home free-and-clear but don't have a job the banker will laugh at you when you go to get a 2nd mortgage on it - the lender wants to make sure you have the incoome to pay. Relying on your home as your sole 'savings account' can be very risky when there's a downturn and yet that seems to be exactly what a lot of people are doing. Of course, you could counter that the equity could also be accessed by selling the property, however in a slow market like we have now in most areas of the country, that could take six months or more.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-15834">0</span> <small>(to vote for this comment, please visit the site)</small></p> Chris:

Sure, buying a house could be considered a method of saving, however, lots of people in the last few years have been borrowing the equity out of their homes to do things like buy cars, vacations, etc. (basically, they’ve been trying to maintain their lifestyle as inflation goes up while incomes haven’t been rising) Now that home prices are softening and even going down in some areas the 2nd-mortgage-piggy bank isn’t as accessable. That and the fact that lots of people already have 2nd and 3rd mortgages so that there’s basically no equity left…

Anyway, if someone isn’t buying a house they’d be renting. You’ve got to have someplace to live, thus the logic for making it an expenditure.

The other thing to remember is that 2nd mortgages (or mortgages in general) are really loans based on your salary, not on the property itself (that’s just the collateral). Even if you own a home free-and-clear but don’t have a job the banker will laugh at you when you go to get a 2nd mortgage on it – the lender wants to make sure you have the incoome to pay. Relying on your home as your sole ’savings account’ can be very risky when there’s a downturn and yet that seems to be exactly what a lot of people are doing. Of course, you could counter that the equity could also be accessed by selling the property, however in a slow market like we have now in most areas of the country, that could take six months or more.

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]]> By: Chris http://queercents.com/2007/02/05/the-dismal-savings-rate-in-america/comment-page-1/#comment-15805 Chris Wed, 07 Feb 2007 19:33:16 +0000 http://www.queercents.com/2007/02/05/the-dismal-savings-rate-in-america/#comment-15805 Housing prices are considered an expediture under the national statistics instead of an investment. So, all this money we're putting into buying houses today are contributing to that negative savings rate, especially with the recent housing boom. That national savings rate looks worse than it actually is.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-15805">0</span> <small>(to vote for this comment, please visit the site)</small></p> Housing prices are considered an expediture under the national statistics instead of an investment. So, all this money we’re putting into buying houses today are contributing to that negative savings rate, especially with the recent housing boom. That national savings rate looks worse than it actually is.

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]]> By: The Money Tree! http://queercents.com/2007/02/05/the-dismal-savings-rate-in-america/comment-page-1/#comment-15441 The Money Tree! Mon, 05 Feb 2007 17:10:16 +0000 http://www.queercents.com/2007/02/05/the-dismal-savings-rate-in-america/#comment-15441 [...] Savings Rate in America Monday February 05th 2007, 12:09 pm Filed under: savings Several personal finance blogs wrote about the Department of Commerce’s report that Americans are not only spending all the money they earn, they spend even more! Our savings rate for 2006 was -1%! However, the best comments came from QueerCents, the featured article listed NPR’s take of our savings rate on an international level: Amy Scott reports, "In China, one of the world's fastest growing economies, the personal savings rate is an estimated 30 percent." Thirty percent! Just give them another ten or twenty years and China will rule the world and economy. [...]<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-15441">0</span> <small>(to vote for this comment, please visit the site)</small></p> [...] Savings Rate in America Monday February 05th 2007, 12:09 pm Filed under: savings Several personal finance blogs wrote about the Department of Commerce’s report that Americans are not only spending all the money they earn, they spend even more! Our savings rate for 2006 was -1%! However, the best comments came from QueerCents, the featured article listed NPR’s take of our savings rate on an international level: Amy Scott reports, “In China, one of the world’s fastest growing economies, the personal savings rate is an estimated 30 percent.” Thirty percent! Just give them another ten or twenty years and China will rule the world and economy. [...]

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]]> By: DivaJean http://queercents.com/2007/02/05/the-dismal-savings-rate-in-america/comment-page-1/#comment-15406 DivaJean Mon, 05 Feb 2007 15:33:21 +0000 http://www.queercents.com/2007/02/05/the-dismal-savings-rate-in-america/#comment-15406 I make sure that I save 15% by having it go directly into my 401K. My company matches up to 5% so then it becomes 20% socked away for retirement. When it comes to the more fluid savings- regular bank passbook savings- I am not as good at keeping to my savings plans. I know the recommendations for having what would equal several months income saved away- but I just never seem to be able to get to that.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-15406">0</span> <small>(to vote for this comment, please visit the site)</small></p> I make sure that I save 15% by having it go directly into my 401K. My company matches up to 5% so then it becomes 20% socked away for retirement.

When it comes to the more fluid savings- regular bank passbook savings- I am not as good at keeping to my savings plans. I know the recommendations for having what would equal several months income saved away- but I just never seem to be able to get to that.

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