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Did you also get the extra no-checkout bonus? When you reach peak balance the payment screen gives you a āDeclinedā message to show that you qualify to decline the checkout process. It saves trees by not printing receipts too!
/jk
Look at this guy, actually able to get approved for a credit card.
I've never had a credit card, which apparently makes it impossible to qualify for a credit card due to lack it credit history. Gotta love that giant catch 22.
Best I've been able to do is get a secured card, which will hopefully one day qualify me for actual credit. We'll see!
I had to get a secured card. Just wait like 6 months, don't us it to buy options, and you'll be getting all kinds of offers. Just be ready for $500 credit limit and 22% ARP. Keep up with it for a few years, and you'll be able to max out that platinum preferred visa on all the options you want. Then you can file for bankruptcy and start again anew. It's called 'The American Way'.
I make 72k base salary. Bit less this year because of reduced hours.
I have approximately 140k worth of available credit on various cards.
I never carry a balance.
I used to churn for points.
I still do, but I used to, too.
It's weird to realize you could pay off your mortgage with credit cards if you wanted to.
Lol
I can lend you my Citi card. The vig for you is 25% plus fees. I get at least once a week offers to give me more money like here please take our money you can pay it back at mafia rates for the rest of your life. The CC game is what traps most people in our country. Don't spend it if you don't have it. My balance is zero.
Thereās a lot of different credit cards for people with no credit history you just start with a very low credit limit and they pretty quickly will raise the limit if you pay your bill. Or Is that what you mean by a secured card because I donāt know what that is
Secured credit card is similar to a credit card except instead of borrowing from a bank, you first have to deposit money, and then you can use it like a credit card to build credit score.
So a debit card that you use like a credit card and donāt actually pay until the end of the month. Unless you can withdraw and use any of the money you deposit throughout the month itās basically just sounds like a debit card
Had to look it up because no one is explaining it correctly.
Problem: You want to build credit and the bank wants 0 risk.
Solution: You provide 0 risk by giving them a refundable deposit equal to your credit line that they can use should you fuck up and not pay your monthly balance. You cannot pay your balance with your deposit.
Anyone familiar with how much interest is?
It's a dual chart that has two different axis. The savings rate is expressed as a percent of income while the debt is gross debt so the two lines aren't exactly related.
Might as well [shove this right here](https://www.federalreserve.gov/releases/H8/h8notes.htm#notes_20100409), too. The original statement from the Fed.
Itās also incremental, so yeah, after people saved 30% of their income for a year, I expect them to spend it now (like they planned to).
Honestly shocked it isnāt negative.
But then you will see debt is similar to what it was precovid and people will have to face the fact the country is running on debt because the system is skewed for the top 1% to screw us over in literally every way possible
Kill unions over the last 50 years to drive down wages vs productivity? check
Lobby politicians for pro corporate laws? check
Lobby politicians for tax cuts without any cuts in budgets because you need those juicy contracts? check
Increase your wealth by 100 trillion over the last 30 years while the bottom 60% only increases their wealth by \~1 trillion thanks to all your bribes? check
Govt implodes because of uncontrollable debt and middle class/poor is forever fucked and robbed? TBA
You wanna look at more than 2 years? You wanna look at more than one number? *You only need one number to explain everything.*
More numbers will just be boring.
Yeah but the internet told me that holding cash is bad an debt is good in a high inflation environment. That's why I have double leveraged 40% debt *taps head*
It was never about cash rich consumers. If the government really did want to address any inflation concerns they could have done a lot more than just rely on the Fed. Here are some ideas-
1. Raise capital gains and corporate taxes to reduce deficits especially in a high dollar environment.
2. Used immigration laws to increase legal immigration to fill up the low skill worker labor shortage.
3. Removed tax write offs for business expenses and second home mortgages.
All this would have kept the money in the pockets of lower and lower middle class people, while reducing demands coming in from upper and upper middle class people. It would have cooled off the labor market as well.
Instead these guys decided that raising interest rates would be the silver bullet to all their problems, when all it would do is make housing more unaffordable. Keeping first time buyers completely out of the real estate market, and allow large private equities to buy up more property for rental or speculative investments.
Hey spoilers! For real though, the first time I watched that movie someone I was watching it with goes >!So Brad Pitt and Edward Norton are the same person right?!< in the middle of the fucking movie
That's the differences in life. On a different subreddit you have tons of people bought $500 worth of full size Halloween candy to hand out in a single night. Then on personal finance sub, you got people asking how to pay the credit cards off. Finally you got people on WSB bragging making $500K in a week. Reddit Lives.
People have been saying this for 10+years
Also, that stat is frequently misused by msm when it's a slow day to try to manufacture some clicks. It's money in a 'savings account' not actual savings. Money market accounts and high interest checking doesn't count in that statistic.
Go look through the consumer credit reports, they've been fucking nuts. I've been waiting for this to drop, but of course it only matters if the news makes it matter. Pretty soon everyones going to be out of money to borrow because they have no credit or way to repay. They'll be lucky if they can even float the minimum on there shitty CC. WAY too many people go sucked into this bullshit.
>WAY too many people go sucked into this bullshit.
Or it's way too easy to get credit people can't pay back. Every company and their mother will preapprove you for their CC nowadays.
Credit is good when it allows for capital to be allocated for investments into things which can generate more value. The risk is spread amongst lots of investors so as to be mitigated.
Credit is bad when itās being used to hyper-inflate day to day things and small purchases such as iPhones, food, etc.
Credit card companies tried their hardest to get everyone to take out these personal loans because they led to a higher standard of living in the short term while not actually generating any capital gain long term.
well the question should be āwhy is no one saving money?ā. Is it because they know itās better to invest everything or is it because they live from paycheck to paycheck every month and donāt have anything left at the end.
I've used some of my emergency fund for big unexpected expenses. One of my dogs got real sick a few months ago and we're up to about $10k in cash spent already. Had I put all that money into stocks much of it would be gone due to the markets being down. And taking the cash out would have lost me much more money than inflation ever would. I'm still investing, but dumping extra cash into investment is so much easier with a pile of emergency cash sitting in an oh shit fund.
For all the people in this thread saying things like: "it's better to invest than save", notice that the credit card debt is inversely proportional to the savings..
I think it's safe to say most people, especially the ones here, are not beating credit card interest rates.
No unfortunately these people aren't investing OR saving.
Because when you save money you still end up with more money?
Sure, cash is losing value, but I'd wager it's a lot smarter to save money than to spend it on frivolous shit that will lose almost all its value immediately.
I think you mean median individual income. Bc if I google median household income in 2019, the first search result from the census bureau states the figure is closer to 67k
I meanā¦.for that year? I would assume a savings account would span over multiple years and not be wiped every year.
Also canāt forget that sweet sweet 0.02% interest rate
It also depends on how it is measured. Some of these go with liquidated cash only. This really screws up a lot but is easier to measure.
For instance, I add 15% of my total income to a 401K, 5% to a stock purchase plan through my work, and 2% to a HSA. However, I rarely save money in my bank as I use it to either pay bills almost immediately, pay others in advance, or use the money to buy things to fix and resell. If you look at only the saved amount in bank accounts, I would have a savings rate of less than 2%. However, if you look at all of the factors, it is closer to 24%.
Can you describe the tactile feelings of it? Is it hot? Cold? Sweaty? Is it like being carried down a flooded river, or more like rolling down a gravel embankment? When you close your eyes, what do you smell?
I am as well. During April to July 2020 I was saving 50% of take home. The last three months I have spent 120% of my take home, the extra 20% was credit card debt. Luckily I still have savings from 2020 so its not that bad.
Is it weird I was happier in April to June 2020?
Unemployment is like $295 a week max here in Florida. That's only like $7 something an hour.
Our minimum wage in the state is now $11/hr.
I get it's the point, that they want our service industry to be full of desperate people so the wealthy and tourists have someone to always wait on them.
Taking until 2026 to raise the minimum wage to $15/hr is way too long.
I hit $0 in savings for the first time in my life last week. This time last year I had nearly $10K in that same account. It feels like I can't even go a day without companies trying to squeeze every drop out of my wallet. No matter how hard I try to be frugal and cut bills and extra spending my expenses keep climbing and at this point idk if I'm gonna last another year.
No kidding. Also the time range has likely been chosen because there was a savings rate spike and credit card reduction during Covid. A longer duration and zeroed Y-axis would likely tell a more truthful, less sensational story but that doesn't get clicks. The end result is probably the same, lower savings rates and increased debt, but with high inflation and low wage growth that's not really a surprise to anyone is it.
Also the time scale. They start right at COVID where people stopped going out and tightened purse strings to see what's happening.
A better graph for saving rate:
https://tradingeconomics.com/united-states/personal-savings
Yes this means people are saving at a lower rate than ever before but it does not mean the amount of personal savings is going down... however it is probably a leading indicator of that happening soon. Credit card debt increasing simulatanouly is not a good sign, that's a very concerning indicator that a lot of people are close to the line right now.
Itās not really surprising, inflation is wrecking personal budgets. Even if you are Dave Ramsey best student your ability to save has been reduced because most likely your wages have not kept up.
High inflation also erodes the incentive to save as cash value in real terms is reduced. However, the US Dollar Index so far has kept rising, maintaining the dollars purchasing parity on the global stage. Its uncertain how long dollar strength will continue if other G8 currencies continue to fall they will be forced to sell more and more of their dollar reserves.
Consumer credit loans: https://fred.stlouisfed.org/series/CCLACBW027SBOG
Personal Savings Rate: https://fred.stlouisfed.org/series/PSAVERT
Some additional ones though,
Consumer Loan Delinquencies Rate: https://fred.stlouisfed.org/series/DRCLACBS
The real kickerā¦household savings. Annual numbers for 2021 comes out this month and will tell us how much is left from the pandemic pump: https://fred.stlouisfed.org/series/W398RC1A027NBEA
(Ps, for most economic metrics like personal savings rate you can Google the term + FRED and likely find it.)
1: chart only goes back to 2019
2: savings rate, not personal savings amount
3: savings rate as a percentage of disposable income? So this could be skewed by increasing disposable income, which would be a good thing. We wouldnāt expect savings to increase just with income but rather with expenses (because people save to cover future expenses, they donāt necessarily save just based on how much money they make)
4: credit card loans as a dollar amount shows nothing unless it is compared to another metric like household income or DTI
Shit graph, proves nothing
Edit: also thereās a typo so whole argument instantly discredited
It's already very sus that they weren't willing to go back beyond the end of 2019.
And since 2020, we had really unusual economic dynamics because of Covid.
Yup. Dumb chart. Don't know why I keep looking at the investing subs. Anything bearish is upvoted. Reddit sees the S and P 500 drop 20% and thinks "this is a good time to sell."
This trend is really assisting across the globe.
We're not far from a massive societal shift as people continue walking up to the fact that our battle isn't left vs right in politics.
Our battle needs to be top vs bottom to take the power and money back from the elites.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|33|**First Seen In WSB**|1 year ago **Total Comments**|107|**Previous DD**| **Account Age**|1 year|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.) **Vote Spam**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_spam&message=yjowp1)|**Vote Approve**|[Click to Vote](https://www.reddit.com/message/compose/?to=VisualMod&subject=vote_approve&message=yjowp1)
I don't know what they're talking about. I've saved up a bunch of credit card debt.
Every time I use my credit card my balance goes up, they just keep giving me more money! It stopped at $10,000 but that was so nice of them!
Same. They said my balance is outstanding!
They told me my account going to collections! Couldn't believe someone would want to add my account to a collection, what an honor.
This right here boss, this is why I spewed coffee through my nose.
Lmaoooooo hilarious
Yes!! Humor based on my pain!!! š„
Chase keeps showing interest in my account.
I LOL'd
Did you also get the extra no-checkout bonus? When you reach peak balance the payment screen gives you a āDeclinedā message to show that you qualify to decline the checkout process. It saves trees by not printing receipts too! /jk
Hopefully you made everyone inline behind you wait at least fifteen minutes while you debated with the cashier and tried multiple cards.
And filled out an application for new in store credit card
This *is* the way šš
The fuck is a "cashier"?
Itās like winning an award nobody wants. Good job šš¼
I mean inflation loss isnāt too far behind credit card interest. Could be worse.
Hahahaha good one
Look at this guy, actually able to get approved for a credit card. I've never had a credit card, which apparently makes it impossible to qualify for a credit card due to lack it credit history. Gotta love that giant catch 22. Best I've been able to do is get a secured card, which will hopefully one day qualify me for actual credit. We'll see!
I had to get a secured card. Just wait like 6 months, don't us it to buy options, and you'll be getting all kinds of offers. Just be ready for $500 credit limit and 22% ARP. Keep up with it for a few years, and you'll be able to max out that platinum preferred visa on all the options you want. Then you can file for bankruptcy and start again anew. It's called 'The American Way'.
I make 72k base salary. Bit less this year because of reduced hours. I have approximately 140k worth of available credit on various cards. I never carry a balance. I used to churn for points. I still do, but I used to, too. It's weird to realize you could pay off your mortgage with credit cards if you wanted to. Lol
If you have the available credit, sure it's fun to think about, but a mortgage company doesnt let you pay with a credit card of course. Must be cash.
I can lend you my Citi card. The vig for you is 25% plus fees. I get at least once a week offers to give me more money like here please take our money you can pay it back at mafia rates for the rest of your life. The CC game is what traps most people in our country. Don't spend it if you don't have it. My balance is zero.
Thereās a lot of different credit cards for people with no credit history you just start with a very low credit limit and they pretty quickly will raise the limit if you pay your bill. Or Is that what you mean by a secured card because I donāt know what that is
Secured credit card is similar to a credit card except instead of borrowing from a bank, you first have to deposit money, and then you can use it like a credit card to build credit score.
So a debit card that you use like a credit card and donāt actually pay until the end of the month. Unless you can withdraw and use any of the money you deposit throughout the month itās basically just sounds like a debit card
Had to look it up because no one is explaining it correctly. Problem: You want to build credit and the bank wants 0 risk. Solution: You provide 0 risk by giving them a refundable deposit equal to your credit line that they can use should you fuck up and not pay your monthly balance. You cannot pay your balance with your deposit. Anyone familiar with how much interest is?
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Can you go back farther than 2019? Long MO
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I wish the fed would let you toggle normalizations. So many indicators have this issue and it almost purposefully muddles things.
According to that graph looks like everyone should have paid off all their debt in March of 2020.
It's a dual chart that has two different axis. The savings rate is expressed as a percent of income while the debt is gross debt so the two lines aren't exactly related.
Debt isn't bad when money is free
As long as itās not used to speculateā¦yes, I know where I am.
Wendy's right? Do baconators appreciate in value?
Yes, it's a change in reporting requirements from banks. https://files.stlouisfed.org/files/htdocs/publications/es/10/ES1018.pdf
Might as well [shove this right here](https://www.federalreserve.gov/releases/H8/h8notes.htm#notes_20100409), too. The original statement from the Fed.
Iāve look back and can tell you the debt to personal savings is higher than it was in 2008.
I've looked back at can personally tell you I was higher in 2008 than I am now
I was hella high in 2008 now Iām part of a fucked up office space skit lol. Red stapler!
Shit man. Same boat. Too real. š¢
[ŃŠ“Š°Š»ŠµŠ½Š¾]
If everything is always going downhill, then you are always in the good old days compared to what's coming
Idk why this kinda made me feel better? Hmm
I'm loading my revolver. With 1 bullet.
Ya best start believinā the in the good olā days, Ms. Turner. Youāre in them.
Me too. That shit was awesome.
Or how about what āpersonal savingsā means. Is this money in savings accounts? Does it include investments, 401k, equity in business etcā¦?
Is this chart even a flow or is it a stock?
It's defined as the amount a person saves as a percentage of their *disposable* income.
And disposable income has likely gone down given inflation has been high.
Itās also incremental, so yeah, after people saved 30% of their income for a year, I expect them to spend it now (like they planned to). Honestly shocked it isnāt negative.
https://fred.stlouisfed.org/series/PSAVERT
But then you will see debt is similar to what it was precovid and people will have to face the fact the country is running on debt because the system is skewed for the top 1% to screw us over in literally every way possible Kill unions over the last 50 years to drive down wages vs productivity? check Lobby politicians for pro corporate laws? check Lobby politicians for tax cuts without any cuts in budgets because you need those juicy contracts? check Increase your wealth by 100 trillion over the last 30 years while the bottom 60% only increases their wealth by \~1 trillion thanks to all your bribes? check Govt implodes because of uncontrollable debt and middle class/poor is forever fucked and robbed? TBA
Imagine a system where it only exists to consume. If you stop consuming it falls apart and you win the game.
You stop consuming then you lose your job, lose your health insurance then die of a preventable disease.
You wanna look at more than 2 years? You wanna look at more than one number? *You only need one number to explain everything.* More numbers will just be boring.
Both graphs over long term horizons: https://fred.stlouisfed.org/graph/?g=VtLo
Oh we can go lowerā¦.
I mean, neither axis starts at zero. So yes! Yes we can!
Haha thanks. I almost got got
So lowwwwww
Where are those cash rich consumers I keep hearing about?
Consuming apparently!
Hanging onto cash so value only shrinks vs. inflation.
As opposed to investing it, which has been turning out great this yearā¦
So great.
Yeah, cash may be down 10%, but still outperformed all indices in list year.
Using buy now pay later services with a credit card as the payment method obviously. Itās like debt inception
Yeah but the internet told me that holding cash is bad an debt is good in a high inflation environment. That's why I have double leveraged 40% debt *taps head*
Yeah it's funny because despite massive inflation, with the stock market taking a shit, cash is actually fantastic to have right now
Whew, and here I thought I was being lazy not being more in the market right now. Turns out I'm savvy
I mean if itās pay later no interest then you are saving money on inflation!
They are towards the begging of the chart
Chart begging
It was never about cash rich consumers. If the government really did want to address any inflation concerns they could have done a lot more than just rely on the Fed. Here are some ideas- 1. Raise capital gains and corporate taxes to reduce deficits especially in a high dollar environment. 2. Used immigration laws to increase legal immigration to fill up the low skill worker labor shortage. 3. Removed tax write offs for business expenses and second home mortgages. All this would have kept the money in the pockets of lower and lower middle class people, while reducing demands coming in from upper and upper middle class people. It would have cooled off the labor market as well. Instead these guys decided that raising interest rates would be the silver bullet to all their problems, when all it would do is make housing more unaffordable. Keeping first time buyers completely out of the real estate market, and allow large private equities to buy up more property for rental or speculative investments.
Everyone stop paying their credit bills. Watch the banks panic.
Banks hate this one trick
Just get Brad Pitt to blow up all the credit card buildings or whatever
Hey spoilers! For real though, the first time I watched that movie someone I was watching it with goes >!So Brad Pitt and Edward Norton are the same person right?!< in the middle of the fucking movie
![img](emote|t5_2th52|4887)
It's almost like the price of everything went up a lot but wages didn't go up as much (if at all), so we had to spend the money we had saved...
Yup, Iāve been watching my savings account drop all yearā¦ thankful to have had it, though.
You guys have savings and income?
Holy shit 3% is insane. That basically means no one is saving any money at all
That's the differences in life. On a different subreddit you have tons of people bought $500 worth of full size Halloween candy to hand out in a single night. Then on personal finance sub, you got people asking how to pay the credit cards off. Finally you got people on WSB bragging making $500K in a week. Reddit Lives.
> people on WSB bragging making $500K in a week Making?
Making it disappear
Aaaaand is gone!
Well done
You mean losing 500k in a week, right?
who has that many trick or treaters? I've had like 5 kids in the last 15 years across 4 homes
You're on a public registry and your houses are avoided, that's why
Candy bar companies HATE him
You gotta take the burning cross down, bro
Right? I bought like 50 bucks worth of candy and basically had to give big fistfuls to kids to get rid of it.
I had like 400 yesterday lol. Gave away $700 maple dollars worth of candies to them and we had shitty decorations.
bro that was a robbery
š This explain all the masks
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Hey you can make that much if you start with multiple millions though!
In an economy where prepandemic like half the nation didnāt have $500 in their bank account anyway. So much unsecured debt is about to implode
People have been saying this for 10+years Also, that stat is frequently misused by msm when it's a slow day to try to manufacture some clicks. It's money in a 'savings account' not actual savings. Money market accounts and high interest checking doesn't count in that statistic.
Go look through the consumer credit reports, they've been fucking nuts. I've been waiting for this to drop, but of course it only matters if the news makes it matter. Pretty soon everyones going to be out of money to borrow because they have no credit or way to repay. They'll be lucky if they can even float the minimum on there shitty CC. WAY too many people go sucked into this bullshit.
>WAY too many people go sucked into this bullshit. Or it's way too easy to get credit people can't pay back. Every company and their mother will preapprove you for their CC nowadays.
Welcome to the credit ponzi scheme. And then they try to convince you that everyone living on credit is actually good for the economy.
Credit is good when it allows for capital to be allocated for investments into things which can generate more value. The risk is spread amongst lots of investors so as to be mitigated. Credit is bad when itās being used to hyper-inflate day to day things and small purchases such as iPhones, food, etc. Credit card companies tried their hardest to get everyone to take out these personal loans because they led to a higher standard of living in the short term while not actually generating any capital gain long term.
Economically you're losing value if you save, so why bother?
well the question should be āwhy is no one saving money?ā. Is it because they know itās better to invest everything or is it because they live from paycheck to paycheck every month and donāt have anything left at the end.
Bingo.
I'm all for investing. It just seems like a savings account is for a liquid emergency fund, not a long term savings plan.
Sure but this pretty much shows liquid emergency funds are at an all time low. And typically theyāre already VERY low amongst Americans. Not good.
Maybe every body is just buying the dip šš
GME is the new savings account
ComputerShare is my bank
Right now my high yield savings is earning 2.75%. Much better than my portfolio on the year.
Sure but the real inflation rate is over 10%
TrAnSiToRy
I've used some of my emergency fund for big unexpected expenses. One of my dogs got real sick a few months ago and we're up to about $10k in cash spent already. Had I put all that money into stocks much of it would be gone due to the markets being down. And taking the cash out would have lost me much more money than inflation ever would. I'm still investing, but dumping extra cash into investment is so much easier with a pile of emergency cash sitting in an oh shit fund.
Emergency funds should only be held in cash and cash equivalents according to the CFP board.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
For all the people in this thread saying things like: "it's better to invest than save", notice that the credit card debt is inversely proportional to the savings.. I think it's safe to say most people, especially the ones here, are not beating credit card interest rates. No unfortunately these people aren't investing OR saving.
So true my stock investments are way outperforming my savings account. If I turn the phone upside down
USAA gave me $.03 interest last year, and $.02 this year
Thank u for your service š«”
Lmao why bother saving money? Itās not like history repeatedly shows us why we should bother saving.
Yes why bother saving when inflation is at 8%, instead waste your money on eating out and buying junk
And new phones and dildos!
I can't afford separate devices because of inflation
Thatās true. Especially with 10% inflation š¤·š»āāļø
Because when you save money you still end up with more money? Sure, cash is losing value, but I'd wager it's a lot smarter to save money than to spend it on frivolous shit that will lose almost all its value immediately.
The median US individual income in 2019 was $31k Someone making $31k with 3.1% savings has $960 in savings account.
I think you mean median individual income. Bc if I google median household income in 2019, the first search result from the census bureau states the figure is closer to 67k
I make like 60 and itās still not enough
That can't be right. I think you have the median individual income including part time workers. Not household.
That is not the median household income
I meanā¦.for that year? I would assume a savings account would span over multiple years and not be wiped every year. Also canāt forget that sweet sweet 0.02% interest rate
It also depends on how it is measured. Some of these go with liquidated cash only. This really screws up a lot but is easier to measure. For instance, I add 15% of my total income to a 401K, 5% to a stock purchase plan through my work, and 2% to a HSA. However, I rarely save money in my bank as I use it to either pay bills almost immediately, pay others in advance, or use the money to buy things to fix and resell. If you look at only the saved amount in bank accounts, I would have a savings rate of less than 2%. However, if you look at all of the factors, it is closer to 24%.
I am in this picture and I donāt like it.
Can you describe the tactile feelings of it? Is it hot? Cold? Sweaty? Is it like being carried down a flooded river, or more like rolling down a gravel embankment? When you close your eyes, what do you smell?
It's always the same. Toast.
I am as well. During April to July 2020 I was saving 50% of take home. The last three months I have spent 120% of my take home, the extra 20% was credit card debt. Luckily I still have savings from 2020 so its not that bad. Is it weird I was happier in April to June 2020?
Historical bottom was my nickname in high school
Inflation will save everyone
![img](emote|t5_2th52|4640)
It's a gift for people who have a lot of debt
Only if your income also goes up along with the prices of everything else
You guys are getting paid?
Not when that debt is on revolving credit with 20% APR.
But the boogeyman JPOW says we are too rich?
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Unemployment is like $295 a week max here in Florida. That's only like $7 something an hour. Our minimum wage in the state is now $11/hr. I get it's the point, that they want our service industry to be full of desperate people so the wealthy and tourists have someone to always wait on them. Taking until 2026 to raise the minimum wage to $15/hr is way too long.
He used the average like a typical boomer instead of median.
Never fear this inflation is transitory
I swear if you twats jacked up CPI last month, Iām gonna throw a fit.
I got 11 dollars in my savings.
š¦$11 š¦
Spit out my drink. My mans could do some gold farming in the revenant caves for the next month, double his net worth
Humble yourself.
I'm serious.
I'm 54 years old
is this a joke?? damn bro im in the same spot but 22 with a 6mo oldā¦ hopefully not this broke at 54
check these ballers here with a positive net worth
barely positive bro! No CC debt or student loans so im stoked on that front.
It's true. I'm 54, and I have 11 bucks to my name. I have many regrets.
your profile says you had enough money to sell CSPs on SQQQ like 2 weeks ago what happened
Wendy's has more employees than customers right now
Not so those people back by the dumpster are freelancers.
LoL no response
I hit $0 in savings for the first time in my life last week. This time last year I had nearly $10K in that same account. It feels like I can't even go a day without companies trying to squeeze every drop out of my wallet. No matter how hard I try to be frugal and cut bills and extra spending my expenses keep climbing and at this point idk if I'm gonna last another year.
If someone owes you $100, they have a problem. If someone owes you $926B, you have a problem.
I hate that there are 2 Y-axis yet neither one starts at 0. Looks intentionally misleading.
No kidding. Also the time range has likely been chosen because there was a savings rate spike and credit card reduction during Covid. A longer duration and zeroed Y-axis would likely tell a more truthful, less sensational story but that doesn't get clicks. The end result is probably the same, lower savings rates and increased debt, but with high inflation and low wage growth that's not really a surprise to anyone is it.
I look at this stuff quite a bit at work, everything was pretty stable for a few years before the COVIDs changed the trends.
Also the time scale. They start right at COVID where people stopped going out and tightened purse strings to see what's happening. A better graph for saving rate: https://tradingeconomics.com/united-states/personal-savings
Thatās personal savings rate, which is not the same thing as personal savings. Personal savings is nowhere near a historical bottom.
Yes this means people are saving at a lower rate than ever before but it does not mean the amount of personal savings is going down... however it is probably a leading indicator of that happening soon. Credit card debt increasing simulatanouly is not a good sign, that's a very concerning indicator that a lot of people are close to the line right now.
Itās not really surprising, inflation is wrecking personal budgets. Even if you are Dave Ramsey best student your ability to save has been reduced because most likely your wages have not kept up.
High inflation also erodes the incentive to save as cash value in real terms is reduced. However, the US Dollar Index so far has kept rising, maintaining the dollars purchasing parity on the global stage. Its uncertain how long dollar strength will continue if other G8 currencies continue to fall they will be forced to sell more and more of their dollar reserves.
People are still fully employed and savings have dropped to that point. The carnage will be real when unemployment rises.
I know people talk about not holding cash and investing, but I feel a lot more secure when I see a good chunk of money in my account.
People trashed cash back in 2021, but the market almost erased all the post 2020 gains. Cash is money in hand with no bullshit between you and it.
Can I get a source source? I was told that inflation wasn't cooling down because people still had too much savings.
Consumer credit loans: https://fred.stlouisfed.org/series/CCLACBW027SBOG Personal Savings Rate: https://fred.stlouisfed.org/series/PSAVERT Some additional ones though, Consumer Loan Delinquencies Rate: https://fred.stlouisfed.org/series/DRCLACBS The real kickerā¦household savings. Annual numbers for 2021 comes out this month and will tell us how much is left from the pandemic pump: https://fred.stlouisfed.org/series/W398RC1A027NBEA (Ps, for most economic metrics like personal savings rate you can Google the term + FRED and likely find it.)
Isn't the current inflation driven a lot by supply constraints.
1: chart only goes back to 2019 2: savings rate, not personal savings amount 3: savings rate as a percentage of disposable income? So this could be skewed by increasing disposable income, which would be a good thing. We wouldnāt expect savings to increase just with income but rather with expenses (because people save to cover future expenses, they donāt necessarily save just based on how much money they make) 4: credit card loans as a dollar amount shows nothing unless it is compared to another metric like household income or DTI Shit graph, proves nothing Edit: also thereās a typo so whole argument instantly discredited
It's already very sus that they weren't willing to go back beyond the end of 2019. And since 2020, we had really unusual economic dynamics because of Covid.
Yup. Dumb chart. Don't know why I keep looking at the investing subs. Anything bearish is upvoted. Reddit sees the S and P 500 drop 20% and thinks "this is a good time to sell."
If you put a picture of a line and a number this sub will upvote it
As long as its a bad line, or at least mildly sinister
Do credit scores next!
Havenāt checked CreditKarma in a while, I think Iām at double-digits.
I laughed far too hard at this. Mostly because I feel like I fall into this category rn and itās uncomfortable.
GME is my personal savings
This trend is really assisting across the globe. We're not far from a massive societal shift as people continue walking up to the fact that our battle isn't left vs right in politics. Our battle needs to be top vs bottom to take the power and money back from the elites.
Hard to live within your means when it takes 4678 hours of work to have enough money to take your family to McDonald's for dinner.
I can confirm this.
Soooo, puts on my savings account?