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> and the popular news heading you see about Americans not having enough savings are all meaningless What? How is it meaningless at all? Because other countrie

by cheeze 7y ago

> and the popular news heading you see about Americans not having enough savings are all meaningless What? How is it meaningless at all? Because other countries are cheaper? Edit: To elaborate (since OP hasn't responded yet)... Implying that it means nothing to have no savings because other countries is IMO just wrong. Moving to another country (especially from the states) is difficult and incredibly expensive. It's the same argument for within the states. "Well why don't you just move to somewhere cheaper?" Because moving is super expensive and if you have no money, and no savings, how are you going to move? Just pack up all your shit and move to Mexico, right?

dsfyu404ed 7y ago
Because Americans don't "save" their money in traditional savings accounts anymore. They shove it in investment accounts of varying types (less common) or retirement accounts (more common). When there's an emergency we tend to put it on credit and then use the time that buys to get money out of one of those other accounts and pay down the balance. Even many people who are living paycheck to paycheck are making some sort of 401k contribution which, while not a proper "savings" slush fund, can serve the same purpose of being able to cover an emergency expense if needed.
- lotsofpulp 7y ago
  Americans definitely keep emergency cash in savings accounts or at the worst, money market accounts. I doubt "Americans" as a generalized entity even have investment accounts, outside of whatever tax advantaged account employer offers. By and large, "Americans" probably just don't have sufficient cash flow to create a decent emergency fund, and/or they lack the discipline. I would hope that higher earners and higher educated are trying to keep at least 6 months of highly liquid assets available, i.e. cash in savings accounts or money market funds.
londons_explore 7y ago
> if you have no money, and no savings, how are you going to move? If you have no money, and no savings, you probably have nearly no stuff too. That means, if you can get a days work at minimum wage, you can afford the cheapest bus trip to almost anywhere on the same continent. If you want less risk, and can get 3 days work at minimum wage, you can afford a return bus trip incase you can't find work at the destination. People don't move because they don't want to lose friends and family, not because they can't afford to.
- cheeze 7y ago
  This is literally how tons of people end up going homeless. It's a lot harder than just "pack up the few things I have and dip out" People totally can't afford to move in many cases. But I've never been that poor to be fair. And I'm guessing you haven't either.
- SomeOldThrow 7y ago
  So... people DON'T have savings, but they can travel, so there's really nothing to worry about.
- wccrawford 7y ago
  >If you have no money, and no savings, you probably have nearly no stuff too. I wouldn't bet on that. I know plenty of people who have lots of stuff, high credit card debt, and very little or no savings. It doesn't make sense to save money for retirement when you have any unpaid credit card debt because you'll be losing money, rather than saving it.
- rovolo 7y ago
  Family and friends are a part of affordability. They can provide housing, food, childcare. Also, how long do you expect it would take to find a job in a new place? You'd need to cover living expenses until your first paycheck, which is an extra 2 weeks after you've successfully found a job.
  - londons_explore 7y ago
    The kind of job that people new-in-town-with-no-money get typically pay cash. Being a cleaner for example, garden work, etc. That sort of job you can knock on doors and get there and then, and be paid for 3-4 hours each time. You can probably earn enough to pay for food in the first week (while sleeping under a bridge), and food and a hostel the 2nd week. Proper housing is far harder to get, because it typically requires a big deposit and proof of employment.

by cheeze 7y ago

dsfyu404ed 7y ago

Because Americans don't "save" their money in traditional savings accounts anymore. They shove it in investment accounts of varying types (less common) or retirement accounts (more common). When there's an emergency we tend to put it on credit and then use the time that buys to get money out of one of those other accounts and pay down the balance. Even many people who are living paycheck to paycheck are making some sort of 401k contribution which, while not a proper "savings" slush fund, can serve the same purpose of being able to cover an emergency expense if needed.

lotsofpulp 7y ago
Americans definitely keep emergency cash in savings accounts or at the worst, money market accounts. I doubt "Americans" as a generalized entity even have investment accounts, outside of whatever tax advantaged account employer offers. By and large, "Americans" probably just don't have sufficient cash flow to create a decent emergency fund, and/or they lack the discipline. I would hope that higher earners and higher educated are trying to keep at least 6 months of highly liquid assets available, i.e. cash in savings accounts or money market funds.

londons_explore 7y ago

> if you have no money, and no savings, how are you going to move? If you have no money, and no savings, you probably have nearly no stuff too. That means, if you can get a days work at minimum wage, you can afford the cheapest bus trip to almost anywhere on the same continent. If you want less risk, and can get 3 days work at minimum wage, you can afford a return bus trip incase you can't find work at the destination. People don't move because they don't want to lose friends and family, not because they can't afford to.

cheeze 7y ago
This is literally how tons of people end up going homeless. It's a lot harder than just "pack up the few things I have and dip out" People totally can't afford to move in many cases. But I've never been that poor to be fair. And I'm guessing you haven't either.
SomeOldThrow 7y ago
So... people DON'T have savings, but they can travel, so there's really nothing to worry about.
wccrawford 7y ago
>If you have no money, and no savings, you probably have nearly no stuff too. I wouldn't bet on that. I know plenty of people who have lots of stuff, high credit card debt, and very little or no savings. It doesn't make sense to save money for retirement when you have any unpaid credit card debt because you'll be losing money, rather than saving it.
rovolo 7y ago
Family and friends are a part of affordability. They can provide housing, food, childcare. Also, how long do you expect it would take to find a job in a new place? You'd need to cover living expenses until your first paycheck, which is an extra 2 weeks after you've successfully found a job.
- londons_explore 7y ago
  The kind of job that people new-in-town-with-no-money get typically pay cash. Being a cleaner for example, garden work, etc. That sort of job you can knock on doors and get there and then, and be paid for 3-4 hours each time. You can probably earn enough to pay for food in the first week (while sleeping under a bridge), and food and a hostel the 2nd week. Proper housing is far harder to get, because it typically requires a big deposit and proof of employment.