A very enlightening yet troubling article appeared on MSN Money today. It is entitled, “The rich don’t save either” and summarizes a survey conducted by HSBC Bank on the saving & spending habits of U.S. households across all income levels. Some interesting excerpts from the article:
…savings hurdles transcend income levels…
As the article states right off the bat, “The low to no savings rate in the United States extends to rich people too. It isn’t just low- and middle- income people who find it difficult saving money.” According to the data, the savings rate in the U.S., averaged across all households, dropped to 0% in 2005 and recently dipped to less than zero for the first time since the Great Depression. That means, on average, Americans are working to simply consume and pay interest…seems more like an American nightmare to me.
This is unsettling when you consider government & private retirement and assistance programs are slowly unraveling to the point either there may not be enough money to meet the basic needs of the vast majority of American citizens or taxes will need to be raised so high they become an even bigger burden on an ever dwindling workforce. Baby Boomers can’t float us forever.
…49% of respondents with at least $250,000 in income aren’t saving more because they simply “want some spending money.”
Bling! Bling! I can’t lie. That would probably be me too if it weren’t for TB. I like saving but have the urge to splurge from time to time. That is why having a wife who likes her money to smell like mothballs is really the best retirement decision I could have made. Sorry, Nancy.
…awareness dims, however, with the more money you earn. More people who earn between $50,000 and $100,000 save consistently than people who earn between $200,000 and $250,000 per year…
In short: More money, more problems. Or, perhaps more accurately: More money can make you a big dummy.
Public Service Announcement: Don’t be a dummy. Save your money.