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Some people like to save and invest instead of spending every single cent they have. We'd be a much more stable society if the majority of the population wasn'

Some people like to save and invest instead of spending every single cent they have. We'd be a much more stable society if the majority of the population wasn't one paycheck away from being financially ruined. 37% of Americans don't have enough savings to cover a $400 emergency[0]. That percentage goes up as the amount goes up and a $400 emergency is easy to hit - medical bill, moving expense, car repair, etc. It becomes 68% at $1,000[1]. [0]https://fortune.com/2023/05/23/inflation-economy-consumer-finances-americans-cant-cover-emergency-expense-federal-reserve/ https://fortune.com/2023/05/23/inflation-economy-consumer-fi... [1]https://fortune.com/recommends/banking/57-percent-of-americans-cant-afford-a-1000-emergency-expense/ https://fortune.com/recommends/banking/57-percent-of-america...

uoaei 3y ago
Saving and investing are not realistic options for you if you're living paycheck to paycheck. That's why it's called that, because you have no money left over after paying for your necessities. Sometimes you don't even get to cover all your bills and you start racking up debt or are forced to be clever with frugality (read: giving up recurring payments like healthcare).
EGreg 3y ago
Saving money is basically buying into the baning industry’s narrative of a fat bank account, or of borrowing money in order to pay it off for 30 years. Now investing is another story! Buy durable things with your cash that hold value over time!
- deleted 3y ago
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dantheman 3y ago
Those studies are horribly misinterpreted. Look at the original data, it includes using a credit card as not having the money...
- Tade0 3y ago
  That still counts in my book. If you have to borrow money then you don't actually have it.
  - unmole 3y ago
    Right, because people don't use credit cards for the additional protection, points or miles. It's because they are all borrowing money they don't have. And billionares who borrow money because it's tax efficient must all be secretly broke too. /s
    - Tade0 3y ago
      > Right, because people don't use credit cards for the additional protection, points or miles. I actually don't know, because I'm not American. Over here just having a credit card draws questions about one's financial stability and responsibility. At the end of the day it's really not your money you're spending like that. I mean - it's in the name even. You'll have to pay it back eventually.
      - unmole 3y ago
        > actually don't know, because I'm not American. Neither am I. > At the end of the day it's really not your money you're spending like that. I mean - it's in the name even. You'll have to pay it back eventually. Eventually in this case is in less than 50 days. In the 15 or so years that I've been using credit cards, I have never once failed to pay off the bill in full before the due date. And the miles and points I've accrued have saved me significant amount of money. > Over here just having a credit card draws questions about one's financial stability and responsibility. I am really curious to know where in the world that is. Even if that is the general perception, it is unlikely to be actually true. Even in Germany, the rich use credit cards at a higher rate than the poor. That is a pattern you'll see replicated the world over. Getting approved for a premium credit card requires one to have a demonstably good income and credit score. So, having such a card is an indicator of strong financial stability and responsibility.

uoaei 3y ago

Saving and investing are not realistic options for you if you're living paycheck to paycheck. That's why it's called that, because you have no money left over after paying for your necessities. Sometimes you don't even get to cover all your bills and you start racking up debt or are forced to be clever with frugality (read: giving up recurring payments like healthcare).

EGreg 3y ago

Saving money is basically buying into the baning industry’s narrative of a fat bank account, or of borrowing money in order to pay it off for 30 years. Now investing is another story! Buy durable things with your cash that hold value over time!

deleted 3y ago
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dantheman 3y ago

Those studies are horribly misinterpreted. Look at the original data, it includes using a credit card as not having the money...

Tade0 3y ago
That still counts in my book. If you have to borrow money then you don't actually have it.
- unmole 3y ago
  Right, because people don't use credit cards for the additional protection, points or miles. It's because they are all borrowing money they don't have. And billionares who borrow money because it's tax efficient must all be secretly broke too. /s
  - Tade0 3y ago
    > Right, because people don't use credit cards for the additional protection, points or miles. I actually don't know, because I'm not American. Over here just having a credit card draws questions about one's financial stability and responsibility. At the end of the day it's really not your money you're spending like that. I mean - it's in the name even. You'll have to pay it back eventually.
    - unmole 3y ago
      > actually don't know, because I'm not American. Neither am I. > At the end of the day it's really not your money you're spending like that. I mean - it's in the name even. You'll have to pay it back eventually. Eventually in this case is in less than 50 days. In the 15 or so years that I've been using credit cards, I have never once failed to pay off the bill in full before the due date. And the miles and points I've accrued have saved me significant amount of money. > Over here just having a credit card draws questions about one's financial stability and responsibility. I am really curious to know where in the world that is. Even if that is the general perception, it is unlikely to be actually true. Even in Germany, the rich use credit cards at a higher rate than the poor. That is a pattern you'll see replicated the world over. Getting approved for a premium credit card requires one to have a demonstably good income and credit score. So, having such a card is an indicator of strong financial stability and responsibility.