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I recently read some disturbing statistics that suggest 7 out of 10 Americans have less than a 1000 dollars on hand. I think that’s really true, I see it reflected all around me. There is no rainy day fund anymore, because it’s been pouring cats and dogs for at least a decade now.
This article from Business Insider expands on the idea, but with the usual finger wagging tone about how we’re all just being negligent with our finances. I’m sure some are, but that completely ignores the truth and reality of so many people’s lives in the country today.
I get frustrated sometimes because these economic changes are not being duly noted, so many well-meaning people just scratch their heads, as if to say, I don’t know what’s wrong with those people, they just aren’t applying themselves like I did in my day.
Many people don’t recognize the huge increase in the cost of goods and the stagnant wages. The other day my husband needed a car battery, so he went and got 30 dollars. I laughed outright, knowing perfectly well we’re looking at something closer to two hundred dollars. My husband lives about a two decades ago, so last time he bought a car battery is was about 30 bucks. Yes, well times have changed.
Today we were talking about one of the area’s best employers, a much desired job in these parts with benefits, all true, and yet still a wage that has been deemed about 2 dollars an hour less than a livable wage for this area. Who actually earns a livable wage? Very few anymore.
We have some grown kids making a nice living and yet people don’t see the vast difference between gross pay and net take home pay these days. I nearly pass out every time I really look at it. Let’s just start with 30% going to taxes and another two grand going to medical insurance. A low-income, modest mortgage these days where I live is about 1200. If you earn 5200 a month, it is quite possible to only net and take home about 900 dollars a month……for groceries, gas, and utilities. Sure, you got a roof over your head and medical insurance, but you have little else, certainly no money for savings.
In fact, people living off of government benefits are going to be living just about as well as you are, a roof, food, and medical, but little else.
When 7 out of ten Americans can’t save any money, you don’t blame the Americans. Business Insider says, “It’s like being on a cruise ship full of wonderful people that’s slowly sinking into the ocean.” Yes precisely, but we aren’t the one’s running the ship, we’re just collateral damage on the cruise.
I grow weary of all the financial advisors, so repetitive and so not helpful, “Live within your means.” Well, many people now are, under freeway overpasses and in their cars.
I remain optimistic, I believe this sinking ship is going to right itself, but no thanks to economists and financial advisors who seem unable to do anything but constantly point fingers at the wrong people.
See, there's this thing called biology... 
Good post.
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It seems that wages have not kept up with inflation. Add the burden of the taxation rate after Obamacarre, and the expiration of the Bush tax cuts and it made a huge difference. I went from getting a state and federal refund, to paying each April. If the fed would stop spending my money, I would have much more cash on hand.
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We need a return to Clinton-Reago-nomics.
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every time i get a pay-check, i tell my mother that it was a good one until the feds stole about 20% of it (yes, i’m a lower-class than sen. sanders but i pay a higher tax-rate than he does). every time, she always says, “well do you want [random list of what feds claim to do with that money]”. this time though, i reprimanded her fiercely–before she got to state the list i said, “stealing is stealing, doesn’t matter where the money goes to.”
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Damn right, the thing is cruel in Brazil too. The Economic Crisis destroyed the lives of many people and informal work is our best options…Sad, but true…:'(
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I can relate about the car battery—my husband went to an auto place last weekend to buy a battery for my dad’s car so we can actually start it and then maybe get it running in order to sell it.
He was thinking 60 bucks…it was actually 260 but because he had the old battery, they graciously knocked off a 100 bucks…for he too lives two, maybe actually more like 4, decades behind—I like to say he’s stuck in a 1960’s small southern town time warp!!!
and perhaps that is what so many of these economists think—we’re living in a distant time of growth, development and the imagined prosperity of those booming days following WWII when the good life seemed attainable to all who worked hard and kept their noses to the ground…but greed, both personal and cooperate, along with a good many other blights upon the utopian middle class smashed that little bubble—everyone still wanted the “good life” but there wasn’t anything much to back it up—
It is certainly a pickle that we are finding ourselves…
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Currently reading Atlas Shrugged. Interesting….
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I moved into my first apartment in June 1974 at age 18 after high school graduation and getting a full time job. The net pay of one weekly check paid the $80 per month rent – a one bedroom apartment in a red brick triplex. The same check also paid electric, gas, and phone. Another of 4 checks each month paid for a car, and a motorcycle for off-road riding – bank loan payments, gas, oil, maintenance, and insurance. A third check covered all my my personal needs for a month – mainly food, general supplies. About 25% of my meals at home, otherwise fast food and cafe restaurants. That left a fourth check to save, or to spend on unusual needs or wants, as well as entertainment. I’ve never been better off since then. Rent increased faster than income, eventually taking half of my net pay each month. Upon going on disability, rent taking two thirds to three fourths. I’ve read about homeless people who have jobs but can’t afford a place to live. Getting worse, with the minimum income rule spreading across the country, so if you don’t have enough income then they will not rent to you. Loss of affordable housing is now the number one cause of homelessness here in the US, accounting for 51% of homeless – including families with children – the children in school by day and living under a bridge by night. I don’t see a way back to the quality of life I had in 1974. It might get better for the Morlocks, but not so good for the Eloi. We’re on the path to the world of Soylent Green, if it can’t be turned around.
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I so hear you! You brought back fond memories of the “good old days.” It was actually the 80’s for me, but that first paycheck would pay the bills and after that we could actually afford to do things like go to the movies and eat out. I’ve never been better off since myself!
Soylent green is simply unacceptable. People are not food, so I’m going to have to insist someone straighten things out immediately 🙂
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I still am living in the 90’s. Food has gone up crazily high. Just to buy a carton of eggs, which were $1.99 not too long ago, sets us back almost 6 bucks. Too expensive!
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I hear you! For six bucks I want the whole chicken. 🙂
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SPOILER ALERT! This reply is NOT a boast, though many may wrongly assume so. It is a truthful testimony to the faithfulness of God. Neither is it intended to be a sermon on the ‘duty’ to tithe although responding favorably to God’s challenge to participate may well be a revelation and remedy!
My wife and I are, according to similar ‘statistics’ poor. We haven’t paid taxes for decades because our income is below the minimum for tax liability. We are retired and receive only social security. But we have always been faithful tithers. We learned long ago – you can NEVER out-give God. Indeed, He quite literally ‘opened the flood gates’ of blessings to us, time and again.
The entire story encompasses over 40 years in ministry, much to much to attempt to document here. But miracles like dinners ‘appearing’ on our doorstep, hundreds of dollars stuffed into coffee mugs in our cabinets, numerous unexpected treasures – all confirm God’s faithfulness.
We have lived in the same house the past 35 years. It is a two-story 2400 sq’ ‘palace’. We own three cars – outright. One a 2016, another 2007, and a 2000 – all Avalons (they’re so dependable. Yes, we were salaried in full-time ministry a few years, but we’ve been given far more than we ever earned. What we received, we saved. The more we saved, the more we received.
According to the related statistics, we should be among the ‘7 out of 10’ who do not have $1000 in savings. But thanks to God, I can’t explain it any other way – our savings account is more than the national average’s annual income for joint filers, and then some.
To God be the glory!
“For our boasting is this: the testimony of our conscience that we conducted ourselves in the world in simplicity and godly sincerity, not with fleshly wisdom but by the grace of God, and more abundantly toward you” – 2Cor. 1:12.
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Amen! Thanks for that testimony. I am clinging to those promises myself, not quite there yet, but trusting in the Lord. He has always provided, He has worked financial miracles for me.
I am still learning some things, but I have seen enough of the Lord’s faithfulness to trust in Him. When we were shutting down our business and my husband needed a job I kept telling Him, the Lord will provide, and sure enough hubby didn’t even have to leave the house. With some 14% unemployment here, he started getting calls immediately. That kind of thing just doesn’t happen without the Lord, it’s mysterious, supernatural.
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The sad thing is the government contributes so much to artificially inflating the cost of essential things like food, energy, healthcare and housing. Then our representatives have the gall to say to shake down even more money from us to fix whatever boondoggled scheme they forced upon us before and is now imploding and that was supposed to fix the previous one.
And the talking heads wonder why people are so upset. Go figure.
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Wow 7 out of 10 Americans don’t even have a grand saved??? I think you are right there’s something more going on than not saving (though I think that’s one part of the story). Cost of living is high…and when we think about inflation ,that means on average people are even more poorer with lowered purchasing power.
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The cost of living factor is usually over-looked in reports about wage and income levels – and poverty lines. My father was considered quite wealthy in his time. He died over 40 years ago, but in his day he owned a property that included a 5bd, 3bth 2 story house, rear cottage, botanical garden maintained by a full-time live-in maid – all for a cost of $41K. He purchased a brand new custom ordered Cadillac ElDorado convertible in 1065 for $6700! a cup of coffee at the local diner was a dime, a pack of cigarettes = 23 cents; gasoline sold for 31cents a gallon! Dads Annual income was $35K.
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Very good point and insight brother
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