Why Americans Can’t Keep Their Paychecks
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- Опубликовано: 28 апр 2024
- More than half of Americans earning more than $100,000 a year say they’re living paycheck to paycheck, according to a report from PYMNTS and LendingClub. This may be a result of a sneaky behavioral phenomenon called lifestyle creep, which is when a person’s spending habits expand as their income rises. The rise in the cost of living complicates matters, as incomes have not kept up with inflation.
So what’s going on?
“I think people hold these benchmarks in their mind [of], if I reach this position or I get this promotion or I make it to this age, then I can live this life, or then I deserve to have these things,” said Sabrina Romanoff, a clinical psychologist who works with clients struggling with financial stress. “Then they kind of go a little crazy or go a little wild on it, and then it becomes like a trade-off, like they only can enjoy their present happiness and they’re not able to save or plan for the future.”
But spending more may not be as simple as people wanting to indulge. Many Americans simply don’t have enough money to make ends meet because their incomes have not been keeping up with the rise in costs of living.
“The idea that people save and they just hit a point where they feel like they deserve [to spend more]; I fully disagree with that,” said Saprina Allen, a budgeting coach who offers insights and guidance to her more than 100,000 TikTok followers on how to be more conscious about money. “When most people don’t have $1,000 in the bank, like most people cannot handle a tire blowout or they’re going to put it on credit.”
Allen breaks down lifestyle inflation into two buckets.
One is that “general idea of what lifestyle inflation is, which is the buying fancy cars, the buying nice things along those lines,” she said.
The second bucket, she said, is more about “everyday things that, if you’re living paycheck to paycheck, you’re going without.” These may be necessary goods or services, such as going to the dentist or getting the car’s oil changed regularly.
“There was a time in my life when [an] oil change was just like, not even a priority,” Allen said. “I’m trying to keep tires on my car. I’m trying to keep it running. I’m trying to keep the registration paid. I’m not concerned about an oil change.”
Living paycheck to paycheck makes people vulnerable to accumulating high-interest credit card debt. Almost half, 46%, of Americans said they held a balance on their credit card because of an emergency expense, according to a September 2022 CreditCards.com survey. Experts recommend having an emergency fund to fall back on with roughly three to six months’ worth of living expenses.
Watch the video above to learn more about why Americans are struggling to keep their money in their pockets.
Chapters:
0:00 Introduction
1:22 Lifestyle creep
4:26 Meeting basic needs
6:40 Finding balance
Produced by: Charlotte Morabito
Edited by: Dain Evans
Animation: Andrea Schmitz
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images
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Why Americans Can’t Keep Their Paychecks
the funny thing is, after buying all that crap, people still feel empty inside
This is because these people are unhappy inside, they buy crap to become happy for a moment.
very true, and they dont understand why
I remember being able to get away from the desire of buying things by simply taking a picture and waiting a few days and thinking about if I really did want that item. It saved me a lot of money.
what crap? all the money goes to rent and basic needs, there is no money to spend on crap you clown
experiences are the only thing worth spending money on if you're trying to "buy" happiness.
"trying to keep my car running, I'm not concerned about an oil change"
Wow... Crazy she didn't find out the hard way. Change your oil, people - even if money is tight. It will save you money in the long run.
What's funny is an oil change is about the cheapest thing you can do to keep a car running, aside from maybe changing a headlight.
The funniest thing is that her look ( nail done, dreads, cosmetics,etc) propably cost her way more 😂 . People say they dont have money, but some just dont know how to handle money properly.😅
She literally said this was how she used to think.
Get a bike. You'll save on future health care bills too.
She's a woman though and I expect women to say that lol. Women aren't the sharpest tools in shed especially when it comes to cars
Poor lady doesn't realize that not changing the oil might seize her engine. Then your money problem becomes a lot worse.
Ha yea, chaning your own oil is a savings. Not changing it is insanity.
that's what the video said that being poor is expensive. in not having money for maintenance, you are forced to pay for replacements.
Wha but it's not even that hard to change the oil of a car your self that was a dumb thing to do then again I was not in her shoes all I'm going to say is that that was a very expensive danger she did.PS she was stupid to not realize oil change is important much more then a lot of other car maintenance bills.@@amylee9
I laughed so hard when se said that.
Women 😂
This all just underscores how expensive the car dependence of American life is for so many people.
And the fact that Americans want to drive the same cars their celeb idols are. the moms pop out one kid want a Tahoe or Yukon and has a $600+ payment on it.
agreed. take the highway funding and spend it on subways, light rail in dedicated rights-of-way and protected bike lanes
I make less then 30k a year, spend 1/3 on rent, and can still save money and not worry about emergencies, simply because I decided to not have kids and not buy a car.
Riding the bus and walking isn't fancy, but it saves me at least $150 a month
@@mattr6688$600? Try $900 on an 8 year note for those cars new
I walk to work and take the bus.. and make 16$ doing facility caregiving.. I have my hobbies and rent
But I don't drive, eat out etc..
I can't even comprehend making 20/hr
Money is a language most people simply do not care to understand but pretend to.
Going to a college out of state that is more pricy than instate and not covered by instate scholarships, buying vehicles that are gas guzzlers, making minimum payments on credit cards or having a running balance on credit cards, and of course buying junk you don't need, Americans are exceptionally financially illiterate inspite of how capitalist this country is
@@antimatter7629they are taught to be socialist literate and not capitalist literate.
Im 29, now earn $120k, no debt, single no kids, in California. Unfortunately still renting. I auto put 13% of my income into 401k and Roth. I grew up dirt poor first gen American. My net worth is $115k and thats with NO assets. Needs vs wants. For example i could use my 30k to buy a car cash, but instead i have it in a CD for 4.5% and drive my used 2016 paid off altima. I love to go to clubs on the weekend, so i pregame at home and then uber there and only buy 2 drinks. Wanted some $200 shoes, got them on offerup for $70, they look new. Etc. The problem is people over spend on wants. If you dont have at least a 3 month emergency fund you dont touch, you'd better save now cuz you're broke. Also dont use a credit card UNLESS its paid off monthly. My CC has earned me 2k in 2 years simply by using it as a normal debit card. If you cant buy it cash, you cant buy it, simple. Yes the economy is trash BUT you have control to not be a poor consumer.
@@djm2189 You're so right, especially on the CC. I use mines as a debit card too. Pay it off full before the due date. No interest from me bank!😊
@@djm2189 Your net worth is your assets minus your liabilities. If you have no assets, then how can you have a net worth of $115k?
The problem with this example of $100k, is that it's very regional. Someone making $100k in New York or LA, is not comparable to someone making $100k in DFW or San Antonio. For me the primary problem with lifestyle creep is my house and truck. Because I live in a more affordable area, I'm able to save, have an emergency fund; my income far exceeds my expenses.
I'm very comfortable with that amount in central TX, saving 50% of my income. Live in a manufactured home on some land, drive an economy car. Good day chief!
As a native Texan, DFW is no longer cheap
I lived in New York, NY for over eight years. Got married and had two kids. Always a single-income household (My spouse was first Grad school, then later stay-at-home parent). Annual income was in the $70's just before moving away. That money was enough to pay all our bills on-time, save 5-10%, and still do some fun things (luckily, in old Northern cities there's often a TON of fun free stuff to do). We moved away not because of NYC's Cost-of-Living, but mostly because of that City's culture.
The single biggest cost saver in New York is transportation. Riding the NYC subway everywhere is way way cheaper than driving a car all over DFW or San Antonio. Riding trains (and buses) cost us $1-2k per year for two people. Cars would cost $10-20k. At salary of $70k, that's a huge chunk of change. Having two cars would've turned our lives into "paycheck-to-paycheck" and "can't make ends meet".
But this video wasn't about CoL. It was about balancing both short-term spending and long-term saving. People can spend their way into debt-stressed oblivion anywhere. It doesn't matter if they're in DFW or NYC.
@@AndreC1992 still significantly cheaper than NY or LA
True but still you can save in expensive areas. I rent for 2.3k in California a tiny 1 bed. I'm 29 and earn $120k. No debt and $115k net worth so far. I auto put 13% into 401k and Roth. I don't consider that income so I live on what comes after. Whatever I save each month by not spending I save or buy gold/silver as physical assets. When I take 8 day+ vacations I buy them cash on sale a year out. Mostly eat at home, drive a paid off car, etc. Everyone can save if they live below their means. Many choose not to because they believe they "deserve" something. Nope. You're fault. And all this is coming from a brought up dirt poor first gen American who has been on his own since 17.
That’s because compensation and quality of life is now crap. My grandmother was born in 1919 and passed away at 96 years old. She did not have a fancy job and worked for a hotel most of her life. She had a nice pension check and her medical insurance was literally the best I’ve ever heard of. It covered for everything with no copays at all! When she needed a walker after an injury she paid $0 for it and the insurance immediately paid for it, same for all the surgeries she needed while I was growing up. I also noticed she would expect things to last a lot longer and felt like things shouldn’t have to be replaced. Back in the day the quality of goods were built to last but I guess corporations got greedy and wanted to reduce the quality of their goods so we end up buying more when they break down!
you talk back in the old days but you forget that the U.S. had super cheap labor from 3rd world country. I don't think this is justifiable as a excuse for your poor choices in life. Let alone poor choices of the masses. The people who actually work hard should get ahead of you. You can definitely get by if you really tried. But hey I'm not you, at the end of the day you're an adult who is responsible for your own life and choices you make lmao.
@@AK255. I think he's talking about the 1950s era. Back when all was made in the USA. Outsourcing for cheap labor is awful of course but it is a newer phenomenon.
People also got lazy which adds to the rising cost of healthcare
On the quality of goods, yes you're right but it's that plus people tend to replace items with tiny flaws that are still usable or could be fixed with glue. We throw away things that your 96 year old grandma would have mended.
@@FutureCommentary1 Modern things are designed to break and not be repairable. Good luck repairing your dryer spindle with glue when it fails within it's 5 years planned obsolescence period. Go ask any repair technician, they will tell you that things that never used to break now do so regularly.
Want to know why Americans are struggling? Look up the price of a one-bedroom apartment in most metro areas (in neighborhoods you would want to live in). Spending 50% of your take-home pay for four walls doesn't leave much for absolutely anything else.
nah you guys think you are big boi capitalist investors when you buy some stock from your (below) 50k income and then vote for libertarians
@@Luca-sz5uydude what. Are you purposely ignorant?
That's the way it was in the 1980's 50 to 75% of a person's income went to housing that's why we bunked up.
Sure blame everything and everyone else for you struggling.
Never be an adult and take responsibility for your financial decisions.
Wonder how many money coaches live paycheck to paycheck
I dont think a money coach will live like that. If so, how will people believe them 😂
@@alicegay4286by faking it
😂😂
@@alicegay4286 you would be surprised how many probably do
It's OK if they are not living paycheck to paycheck....but they will have a better chance of connecting with people and understanding them if they have at least experienced it in the past.
I am a millenial and I liked how they presented the perspective of someone who didn't even have $1000 saved up for an emergency; many people in this situation simply do not have the means to afford anything beyond basic necessity. However, most of the people I know personally living paycheck to paycheck also use up a ton of credit on credit cards and loans and buy a ton of stuff that they actually don't need. I think we all need to prioritize saving more.
Most people can’t wait until they can afford things to buy them. They want it now. They get it now and pay for it later. They think they have all the time in the world to pay it until they get older and then they see life is much harder for them.
Blame your government mainly democrats..did you have more money or did your money go further 4 years ago.i know i was.then vote differently.
While I agree that it would be wise to save more, the tragedy is if people didn't spend as much in this country, more than likely our standard of living would start to decline. I know people might scoff at that idea and say "We're living in a nation that parades as a first world country but we are far from it" but I'm talking specifically access to consumer goods. When people stop spending, the economy goes into a recession, people start getting laid off, and if it happens too fast and too quickly, then the Fed decides they need to step in and lower interest rates. And the cycle starts anew.
It's all about that image people who can't afford things want to project..it's tik tok social media and the like..how bout we do like China where tik tok is science and learning based social media is strictly monitored for sexual things like too revealing clothes and no breaking of any laws...maybe society would be a better place...we're america we're free to do or say what we want as long as we go along with what the democrats want,otherwise we're silenced and called conspiracy theorists..when it's actually happening in front of our faces..good luck millennial and gem z the world's about to get a whole lot harder and you are not prepared for it
@@TheVoiceofTheProphetElizer I don't think it would be unreasonable to get people to save until they had $1000 in the bank. I'm not talking about saving as a virtue in of itself, I'm talking having emergency money. There are investments you can make as well to make sure that money is doing something.
I make 2k a month but I try and manage to save around 500 of that each month after bills and everyday needs
Nice job 👍🏾
I make the same amount and am paying $500 a month to my credit cards 😭
I make 1850, it's been pretty easy to throw 100-300 in a month. Just gotta live frugally.
Keep going too! I wish I’d done that years ago.
1 bed, 0 bath is 2500 a month out here
As someone who has prioritized saving for a singular goal, it feels amazing to have security in a time where almost everyone I know is financially stressed. I could live off of savings for 3 years if I needed to. That is huge piece of mind and now I can give myself permission to slow down.
same, though I a breadwinner of my family atm and now cover most of their expenses, i am still able to save emergency funds that would last me up 10 to 12 months of being unemployed.
Mine is a year but definitely still building it as these times just seems so uncertain.
I hope you're keeping that in a HYSA my friend ! You can get 4-5% almost anywhere right now !
Great Job! I’m trying my best to do the same. As I’m getting older. I’ll be 49 next Saturday. I thought abt getting a 2nd job, after my 9-5 it wld be too much. I need to take care of my health.
@@PacificSwordFor what reason would you recommend a 5% HYSA as compared to a 10% S&P index fund?
Love how the blame for the financial crunch everyone is feeling is put squarely on us for "lifestyle creep" and not the PLAIN fact that prices for everything have skyrocketed. Thanks CNBC!
Because it does come down to the personal soending and individual choices
When prices go up, buy less. Prices are going up and people want MORE. Learn how to say NO to yourself
@@privacyplease1556
You can say no as many times as you want, that still doesn't take away the fact that you can't afford a life where prices are going up all the time. No amount of saving you can make will save you if everyday needs become a luxury.
This isn't addressed here. The article turns a general problem ( inflation) into a personal one (overspending). The two have nothing to do with each other.
Not descriminating them is part of the problem.
Furthermore, what people are not getting, is, that they can't save themselves.Nor can any financial advisor.You need a constant stream of incomes (plural) to buy yourself the savety you desire.This, plus a savety net of friends and family.
Money won't save you.
@@jsebby2284 Personal choices are just that, personal decisions. Inflation and the economy's health are completely different but are still significant bc purchasing power goes down w/ inflation. No matter how well you save, if your purchasing power goes down, it decreases your financial health.
@zerocal76 exactly. Personal choices. When you make bad financial decisions, it's on you. Not another person, not the system or the country.
And sort of - but you're not painting the full picture. The SP500 returns has significantly outpaced inflation - so you can very easily save and be in a better financial situation even with inflation. Also, you aren't accounting for wages, which have outpaced inflation for decades
As a millennial who has been in credit card debt the majority of my adult life I can tell you how much it robs from your life. Making more money is certainly a factor in a better life but it depends on what you need vs want. I currently am on a credit card repayment plan (ACC) and was able to sell my car (as I can walk to work) and though I only make about $2600 per month I am able to save roughly about $500 a month. All I can say is consumerism is a trap (modern slavery) and will cost you a lot; one has to be willing to escape the society herd mindset if you ever want to be free of the work/debt manifesto that we have been sold since birth.
That's a perfect description of consumerism. I would only add that Capitalism is a cult. They even have our species potential survival in their greedy hands. Having already caused the world's 6th mass extinction event. We need a system that's not based on greed. Competition is for sports and games, not the ability to live a decent life. For the 1st time our lifespans are dramatically decreasing, while the wealthy elite lifespans are dramatically increasing.
...Capitalism is modern slavery. These issues would not necessarily exist in communism. In this video people are basically describing poverty.
@@efthimios1917 Then why don't you move to China or Cuba? No need to stay in semi-capitalist West.
@@efthimios1917 Communism has its own issues as well and doesn't fit in well with human nature based on its core philosophies in my opinion . I think a balance or hybrid of multiple societal and economic systems will yield better results than any one ideal or theory as there are pros and cons to every system. Most successful nations these days comprise of several different systems including the US.
And to be perfectly honest, I cannot even tell you how I racked up an extra $11000 in credit card debt.!! Utilities, car repairs, fast food, 2nd cabin down south for the 2 worst winter months...I paid $14, 000 over the last 17 months on an income if under $30,000 net...SO far yet to go..inflation has made it harder
I don't keep the statements you heard a year.
I kind of know did it came from utilities and carry pairs?
Living in Europe makes me realize how little money I need to live a good life. In Canada all I was doing is spending money. In Europe you hangout in a park while in Canada you try to build your own park in your own backyard
Jealous! The UK is turning into more like that. Can't leave your house without it costing £££.
👍👍🙏🙏
America (and maybe Canada) will go the way of the Soviet Union. They were all flash in the pan, Europe has substance.
People making it sound like Europe is paradise. Well it's not you go without alot of things i
@@johnsilva1225like what? We have everything we could wish for
Don't fret, the debt ceiling always goes up. I wonder if 2008 crisis survivors had it easier. I'm concerned about the stock market, I've lost $35,000 this month, and my income is down. Worried I won't save enough for retirement as I can't add to my savings.
Save at least 20% in your 401(k). Use online calculators to determine your ideal contribution based on age and income. This strategy ensures a comfortable retirement and capitalise on compound interest for growth.
I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.
Hello! who is the consultant that assists you with yours and if you don't mind, how do I get in touch with them?
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
How does one loose 35 grand in the current market ?
It just upsets me because high school is spent drilling college in your head, instead of teaching life skills. I never wanted to go to college I’m successful in what I do in the workforce. The public schooling system would have done much better if they taught me how to manage finances and life, as opposed to trying to push me toward thousands of dollars in student loans. I work along side a plenty of people who have a four year degree that can’t find a good job for their degree. Our priorities as a society are completely flawed.
Rich people don't wantr you to be aware of these things.
Agree with OP. Problem is American school system for the most part teaches you WHAT to think, but not HOW to think.
I totally agree. Life skills are far more important than a lot of the forgettable stuff that is taught in schools. But I guess you can't teach what you don't know, have an appreciation for, or any concept of.
Kids graduate after 12+ years of public education with zero marketable skills whatsoever. It’s beyond tragic. It’s literally just daycare, a place to dump your kids because both parents have to work due to crony capitalism/feminism. Almost no one needs further education beyond basic reading, writing, and mathematics, all of which can be learned by age 13.
The largest waste of human capital in the history of mankind.
@@coinbuyer-8605
No, the American education system doesn’t teach you much of anything, it’s a make work government program to justify giving teachers a 40hr work week. 90% of the useless knowledge gained will be forgotten within a year of graduating and is completely inapplicable to the real world anyway.
When I had over $100K in debt from credit cards and personal loans, I budgeted to only have 50% of my income go to expenses and the other 50% go to debt. When I got out of debt, I maintained my expenses between 50-60% and save the other 40-50% for the first two years to catch up. After I had my emergency fund set up, 401k, Roth IRA, and HSA fully funded, I’m paying myself first by setting aside 25% of my income for long-term retirement accounts, 10% for fun, 10% for extra investments. It takes careful planning and discipline at the same time you have fun. I just sacrificed fun until my debt was paid off
Fun is cheap. A professional soccer ball is like $170. Good for months if you're aggressive with it. Years if you're kind to it.
@@millirabbit4331why not buy a $20 ball?
@@millirabbit4331or get a Mikasa for $30 and it will outlast you 😂
You are not sacrificing fun. You are deleting your sorrow. Good job sir
how much is your monthly income? mine is $3200 after taxes and trying to find where i can make significant spending cuts
Yay! I got a raise! Now I can afford the healthcare and medication I need to stay healthy. Aaaaaand now I'm broke again.
It's called slavery if you work and can only afford to shelter and feed yourself.
My asthma medication WITH insurance costs me $100 a month. Ridiculous
@@LadybeeTalented21yeah but u guys often criticize me when i proudly proclaim free healthcare.
@@joshyhush22 Its in bad taste to show you how much medicare for all relieves someone of being chained to their jobs? I'm trying to get you out of your cave. Without healthcare I'd be a miserably stressed out dude afraid to fall ill OR perpetually broke individual due to insurance costs. Yet you guys focus on everything but. Our corporations are no nicer but they don't own our bodies.
@@LadybeeTalented21 my health insurance takes almost 200+ dollars a week, I could have so much more if I didn’t have crappy work insurance
Having grown up poor, I have money anxiety from the fear that it could all disappear one day until now. Saving is a survival instinct. As a result, I spend the same when I make $80k a year as when I make twice that.
I have purchased one new car in my 50+ years of life and I am still driving it twelve years on. I live in a small, two-bedroom apartment that I bought in the deep suburbs, which means I commute up to 2 1/2 hours a day. I bought it when the area was sparsely populated and I only pay about $400/month on mortgage. My family teases me about the backpack that I used for so long that there were literal holes in it when I finally threw it away. I do save up to half of my paycheck during good times.
I am happy to say that when the pandemic came and my income dried up, I got through just fine. While people I know who make less than me are driving by my little Ford Focus in their big SUVs and living in houses much bigger than mine, I guess my economic resilience is one thing that I can count as a success.
good for you !!!
yeah. For me it's working in an industry that could vanish at any moment. Whatever they think of scarcity mindsets in this video, it can be a very real thing. I'm not miserable though from saving so much. and I'm not afraid to "treat" myself on a whim.
So how long do expect to live in panic mode? Until you die?
@@cutthechicken194 That's a legit question. I wouldn't call it "panic" but it is definitely cautious and reluctant. I have learned to pace myself and deliberately spend on things that I wouldn't before. A few years ago, I took up scuba diving as a hobby, for example. It was a way to get me to try to live in the moment a bit instead of always being future focused. I did have to remind myself, "You are worth seven figures, you can afford this."
@@masterchinese28 I am with you. Better to err on the side of caution when it comes to money. So much less stress. On the other hand I cannot take it with me when I die.
Dave Ramsey said whenever you get a raise, pretend you never got it and save that extra income or pay off debt with it. You have to tell your money where to go, otherwise it will be absorbed.
What is a raise?
@@darth6129 Are you genuinely asking or is this rhetorical?
the common American logic is 'NOOO MOM I DESERVE A BETTER LIFE'
Yes, let's trust a guy whose been out of touch for years while preaching to everyone why they should be like him.
@@Wkumar07 We should always use discernment with any advice we get. I don’t need to try and be like Dave Ramsey. I’ve only gleaned things from him. I haven’t cut up my credit cards because you need credit these days. I just keep them active with little to no balance. But I have implemented his other methods and have become debt free with the ability to save money.
“Stop spending money you don’t have to impress people you don’t like”
Dave Ramsey
And i bought a car in my country and i am thinking i could have walked. 😂😂😂 And they are buying pre made houses , fast-food , travel , subscriptions , fast internet and so on mobile plans new tech branded clothes and so on.
More like George Carlin
Uncle Dave!
When an employee is pregnant, fire her.
-Dave Ramsey
Promote a timeshare exit company and get hit with a $150 million lawsuit
Dave Ramsey
You can save a LOT of money by not hiring a "wealth coach."
Spend less than you earn. Cook instead of going out. Pay off your highest-interest debt first. Make sound investments for retirement (like index funds or mutual funds, NOT crypto or trying to beat the market with individual stocks). Keep an emergency fund of 3-6 months' worth of living expenses for when life happens (it inevitably will). Enjoy.
No amount of personal responsibility yields advantages of being born before 1980.
@@KorlokoYou need to play the hand you've been dealt, not wish you were dealt a good hand. There are some times in the past that were better. There are far many times in the past that were far worse.
@@funtechu Of course. But my point should be a starting point for policy decisions. Why are young brokies subsidizing our rich grandparents?
@@funtechu then people shouldn’t be complaining about low child births which is a result of economic decisions. Society will just have to play a hand with far less people in the future!
@@Korloko Cannot think that way. Just do the best you can and then life will smile at you.
I'm a millenial. I didn't start going into credit card debt until the pandemic happened. Living expenses and insurance costs exploded, but my income did not.
People are financially irresponsible and they are taught to be so. US economy is overwhelmingly based on consumption & the service industry. Businesses need a large portion of the population to spend irresponsibly to juice the economy. Overspending not only helps the companies that sell the products and the retail & service jobs, but the financial companies that people borrow from on credit cards, loans, etc...then it flows to every other industry in the nexus of overspending.
So if everyone was a sunnmøring, the economy would not do too hot?
Yeah we have an entire society built on consumer spending. We literally don't do anything else. So yes it's hard to save if u see every suggestion to spend. Ex - George w Bush said this right after 9/11. 'People you need to spend money' right after a crisis that is what he said. That should tell you who the society cars about. Business not the the citizens. And just to clarify it's not bc of the individua being lazy or anything It's bc our crappy society that values business over their own problem
@@bkkid75 There's a difference between spending normally and spending irresponsibility when you don't have the money. Americans do the latter hence 1 Trillion in credit card debt and people taking out 100K in student loans for a degree without the earning potential to ever pay it off.
@@grobble8954 I think what they are saying is the economy NEEDS overspending, if everyone just did regular spending our metrics would go down and / or there wouldn't be enough money cycling through
however, you guys can say your big economy number is bigger than anyone elses - I can't to that
I was out of work for half of last year and had to sacrifice so much. When I started back to work with an increase in my income from my previous employment I live as though that money isn't there. It automatically goes to reduce debt and to save. My coworkers are always eating out for lunch and talk about what event they went to over the weekend. Personally, I'm preserving my paycheck.
You dont bring money with you when you dies. Just spend the money now. If economic crisis then we just loot the shop from the rich like in 2020.
Thats the smart way
👍
How much money did you make two years ago, 2022?
Good for you! It's hard not to spend when you see something shiny
People go on a trip and charge $10,000 on credit cards
Yup. I bought my vacation a year in advance. It's for my 30th bday in the Bahamas for 8 days! Got a 5 diamond all inclusive adults only for 4k cash. If I waited to buy it like many others it'd be 8k+. I already have a great savings but I'm pretending like I don't to make up this 4k I spent. Different mindset from the rest.
And still blame other people than themselves on why they cannot "pay rent"
Be safe and have fun.@@djm2189
and then they'll blame modern soceity for influencing them and making them spend LOL
or blame the govt for not giving them free money
That’s usually not a good idea.
i know for me as a millennial, the trauma of having to try to work and make ends meet in the post 2008 years really scarred me financially. i'll probably always be a "super saver" because i remember what it was like to miss rent payments and have to beg for a minimum wage job only to get rejected. now that im into my 30s and have a good income, i generally save 50-60% of my income and have built around 10 years of savings i can live off of. i think alot of ppl living paycheck to paycheck but still earning a good income have just never gone through real genuine financial hardship. i have and i wont ever go back to that.... it left quite the impression
Same for me. I never got over being unable to find a job for 11 months after graduating into the Recession.
👏🏾👏🏾👏🏾
I got to say CNBC, you answered the question in a roundabout way. You had a good third of this video focused on "Finding Balance" that were sound bites from a "recovering super-saver" saying "don't save for the sake of saving" while showing people having fun at theme parks and luxury retail stores.
With the given focus on $100k+ earners, dismissing poverty charging interest, and wage stagnation, you should have titled this "Why rich Americans feel they are living paycheck to paycheck"
If you think 100k is anywhere near "rich", it's not the world, it's you--you're just peak broke.
@@bentley2495yeah my $120k ain't the same as my parents generation and I live below my means. He was an ambulance driver with only a high school diploma, and my mom did odd jobs. They were able to buy 2 homes, 2 cars, and vacation here in California 💀💀😔😔 like bro....
@@bentley2495 Depends on your definition of rich. 100k is way more than enough to meet your needs and then save some. Manage it well enough and you can become a millionaire in a couple decades
Then they completely reverse course and tell people to enjoy their lives and not worry so much about saving all the time. Like what a disaster. They are driving this unhealthy consumerism by sowing doubt and then soothing egos.
@@bentley2495100k is ABSOLUTELY rich. Its the top 10% of Americans and even smaller if you include the world.
Simple rule: Want vs Need.
buy the best of what you need. (you buy cheap, you buy twice)
buy less of what you want. Save money from your wants, and apply them to quality products you need.
Blaming spending increases on “lifestyle creep” when there’s no affordable housing is absolutely ridiculous
This way they can avoid blaming the people who are actually at fault. Corporate greed makes everything less affordable or even unaffordable. And they bribe politicians so nobody ever bothers them.
"Affordable housing" just creates poverty.
But not everyone is in that position. You also have people that live paycheck to paycheck while having the latest iPhone, a big TV, a nice car and so on. They spend so much on luxury goods, rack up a lot of debt and then struggle to pay off that debt even though they do earn a decent amount of money.
the unaffordable housing is mostly in large cities like LA, Houston, SF, NY, or San Diego. any other city is fine
@@redbean9410 Exactly. People who complain about lack of affordable housing aren't really looking for affordable housing. They are just looking to live where everybody wants without paying the price.
"Influencer" culture doesn't help, either. Those that grew up before this phenomenon have seen the big change in expectations and in spending patterns. Those that never lived without it don't know that it is impacting them. Very interesting to watch.
I remember the days when the "influencers" would tell you about a product because it was something they genuinely used and thought was good. They'd talk about it, and then the company might reach out for them to do a sponsored deal. It only took a couple years to go from that to companies shelling out thousands per bit for these people to shill whatever crap they're contacted about. Very few have the integrity to only take sponsorships from things they actually use and feel are a good product these days, and I honestly can't say if that much money was being shoved in my face that I wouldn't take it.
IMO the more "influencers" I see pushing some product/service, the worse I know it is, that or it's just horrendously overpriced to cover the cost of all the sponsorships.
@@jblyon2👍👍🙏🙏
How many of this 62% are paycheck to paycheck struggling for groceries and rent and how many are paycheck to paycheck after maxing their 401k and paying their mortgage?
Considering the median 401k is abysmal, not many. Mortgage does make a big difference though. Many have overextended their housing budget. Paycheck-to-paycheck data usually considers retirement savings as extra buffer (i.e. not paycheck-to-paycheck)
All the same thing
@@Isaiah094 not really . one everything is gone , the other is growing money while they sleep
@@realiangarciaconfused, so you're saying the data excludes people putting into a 401k? For example lets say I'm pay check to pay check but put 10% income into 401k. Obviously if I stopped contributing I'd have wiggle room and not be paycheck to paycheck. Would I be included in this stat?
How many people are maxing out their 401k contribution and then die just as they retire without being able to enjoy it? I know many. lol
Healthcare and college costs are astronomical too
In spite of inflation, for 2023 we had a 50% savings rate. 7 years ago on basically the same income we were living paycheck to paycheck and saving 0%. We made a hard decision and crafted a budget. We taught ourselves how to say no to ourselves. We eat like royalty but dine in our own dining room. All of our stuff is paid for we have no credit card debt, no car loans and no mortgage. It took years of discipline and friends feeling sorry for us because they thought we had lost our minds. But all we really lost was our debt and our poor spending habits.
Well, you lost that stress too.
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Oil in the car is not basic maintenance lol, it's necessary lol
Society's getting out of control but the blame still gets put on the people trying their best to just get by.
So we're not going to address that the cost of everything is higher than it was a year ago, but most of our wages aren't. Our wages are barely keeping up with the cost of living. We can't even buy cheap American cheese anymore. A 16 pack of Kraft singles cost around $4
The POINT of the video is that without financial literacy people will “barely keep up with the cost of living” no matter how much they make. People living paycheck to paycheck on six figure salaries, even in LA and NYC, demonstrate that.
Why do you want Kraft American Cheese? Are you wanting high cholesterol? Buy the cheaper stuff thats actually not that bad for you like beans and rice. Moderation of course.
Respectfully, it’s to encourage you to get a better job, get skills and go to school.
The competitive jobs that keep up with the changing market have no problem. Get a computer science degree and make usd$160k a few years after school if you’re competitive
@@534N69 Respectfully, no, it isn’t. If I tell you the road to success is the I-90 corridor, and then I destroy sections of the interstate and put toll-booths over the rest, I’m sending a mixed message. We’re destroying the public school system via under-funding and pricing out the folks that manage to qualify for college, THEN saying education is the key to success. Those $160k computer science jobs are being done by people from *poorer* countries than the USA with better educations they got for FREE.
@@534N69 That's doesn't truly plan out when you are working for the government providing social services like education, health, public welfare, and public safety. In rural communities where resources are lower there is no better jobs to go to. All the high wage jobs require at least 6-12 years of education. A lot of people in my communities in my location the only job in town is usually the mill or the farm.
When are we gonna talk about, most people wages are too low? The cost of housing and items are rising but pay isn’t.
When that happens we'll talk about it.
Pay is rising
I am from slovakia and it seems like most americans would literally not survive in eastern europe. I was unemployed for years due to my health issues and still my bank account never went under 1500 eur. The idea that someone is making 100 000k a year yet has no money on their bank account is crazy. Especially in a country with private health care system.
I have met many americans, and while not all are the same obviously, it is shocking how many are so bad with money. People making 70k a year are literally complaining that they can not afford vegetables, healthy groceries etc... while at the same time the have always new iphones, ton of new clothes, where they dont wear 90% of them, shoes for 200bucks, jewelry, apple watches, airpods pro, macbooks, new or thirsty cars etc...
And it is not only in US, us is the most obvious, but also similar mindset is floating around in UK, at least in my experience. It is just that in US people really make a lot of money. And yes some people have financial troubles but seeing 30 years old complaining with straight face about unaffordable healthy groceries while wearing balenciaga jacket and jewelry /accessories worth 5k combined - is surreal.
Underrated commentary 😂
Slovakia doesn't have taxes and fees like the USA
Those taxes & fees eat away at people's salary
@@cutthechicken194 what are you talking about? Slovakia has over 20% vat tax, and almost 40% from the salary goes to the state (taxes, health insurance, social insurance - which both are mandatory). Minimum wage is under 700e (which most people in my city work for), and utility bills are 200-300e/month for two bedroom apartment. Housing prices are double that of San Francisco or New York according to salaries.
@xlukas93 I live in the state of Virginia. I drive a Ford car 🚗
Ford pays a TAX to make the car. Then Ford includes the TAX cost in the price of the car, which I pay.
I pay the sales TAX on the car.
I pay the registration TAX on the car
I pay the insurance TAX on the car
And every year, Virginia charges me property TAX on the car.
Other countries don't do this to such a degree.
Real income not growing for decades is just facts. Please don't try to blame it on workers like we living Bugatti lifestyle 🙂
- exactly! Just look at history for proof
Yeah bozos literally think 100k a year is pretty normal when literally only like 15% of the population earns above a 100k
Some people are blowing lots of money on stupid stuff, don't pretend they're not. And some people are squeaking by with just the essentials, or they are not making it.
It has grown for decades though. Also, still doesn't prove that wasteful spending isn't driving this number way up
adjusted for inflation? not at all @@jsebby2284
This is why I don't buy the narrative that most people spew about things like income inequality. I make just over $100K a year and raise 2 kids alone 12 years now. I bought a house 2 years ago and plan on paying it off in 3. Needless to say, it takes discipline to do that. No car payment because I drive old and used, I get furniture for free, I don't eat out EVER, brew my own coffee, don't date, don't drink, I have a hobby that MAKES me money. I spend on my kids. The same people who complain about being broke ALWAYS have money/credit to buy non essentials. No sympathies here, they bring it on themselves.
having a nice car means you are a target...for thieves, for auto accident scammers (those Russians in Brighton beach in Brooklyn New York), have to constantly worry about vandalism unless parked all the time in a secure spot, I mean I can go on. I don't see how things like this make your life better.
Safety that's how. My car is great for anonymity but it's not the best in a collision.
Interesting that I had the exact opposite reaction to the post pandemic world. During pandemic, there was nothing to spend on (relatively speaking) so I felt a great sense of relief. But as lockdown ended and stuff opening up again I felt like I had to rely on my own discipline now and it felt very constricting. I did manage to reduce my overall budget by 20% though. But it wasn't without its discomfort.
What are people buying? Nothing is enticing in the modern world. It is almost all junk with limited useful features. The things you actually use and need can be bought for a little more to avoid junk and then be used for years.
@@millirabbit4331 So much of what is advertised to me is crap that honestly if it was half the price I might be tempted, but the prices are so absurdly high that I don't even consider it. I don't need a $700 litter box that will break in 2 years! What I have been buying are hard goods that will last. Most of the things in my kitchen will outlive me. I spent good money on furniture that should last 20-30+ years, not IKEA junk that'll be busted in 3. I have no debt at this point and I fear being in debt far more than not having the latest junk.
And I guess , we ll have to contact your cousin Ahmed Johnes who is a financial advisor 😂😂😂
@@millirabbit4331every year, Samsung and Apple release latest and greatest devices. Every year, auto manufacturers release the new cars with newer features…and the list goes on so when people don’t have the discipline to resist the urge to acquire the latest and greatest things, it’s easy to find things to spend on.
if holding money discomfort you, you deserved to get your money run out
If you make 100,000 or more and are living paycheck to paycheck - when you could be living comfortably. I don’t feel sorry for you if you’ve decided to frivolously beyond your means. I make about 50,000 a year right now and still manage to save for retirement.
Yup! I'm 29 earn $120k, no debt,single no kids with $115k net worth and auto put 13% income into retirement. But I do live in super expensive southern California. Nonetheless, I know MANY PEOPLE who make way less and yet spend and live way more lavishly than myself ....
crazy how they say its because of lifestyle creep but I cant afford an apartment groceries and my car insurance like I don't want fancy thing I just want to survive
1. If you have to Uber Eats a Starbuck coffee or bubble tea, you deserve to be paycheck to paycheck. Try to resist the temptation of spending money at your fingertip (ie. shop online, order food deliveries, etc).
2. Best align yourself with friends with similar "saver's" attitude. Learn to cook. Do potluck style of dinner gathering with friends and families instead of paying expensive meals and drinks at a restaurant.
3. DO NOT get a pet. If you can barely make ends meet, then don't get a cat or dog. I have seen way too many poor people who can't afford vet bills and resort to credit card debts.
4. Stay with parents/friends AS LONG AS you can. This is the best time to save money until you are ready to be on your own.
I once had a friend who was a major extreme cheapskate who would always show up at the restaurant that I worked at then and always begs me for free food and free drinks in which I would never give him since I didn't want to risk getting into trouble and he would always whine and complain and become bitter and resentful at me. Needless to say I disowned our friendship with him so his insistence on free stuff turned out to be very expensive for him.
There was this show called "Extreme Cheapskate" and this guy would walk around the restaurant with a to-go box asking people if they wanted to give him the leftovers that they weren't going to take home. Too funny.
*This video addresses everything but employers PAYING MORE* - *Theyre basically telling you to save your sheckles and be thankful lol*
Do you think that if Americans made more, they wouldn't also spend more? You give someone a raise or bonus and they'll just use it instead of investing it.
If you don’t like what you are getting paid, go work somewhere else.
And prices of everything increases...what's next? More money?
That does not negate the fact that the employee is responsible for how they spend their money.
@@HarmonixsLoL Yea , lets go to a bar , lets buy drinks, flowers,travel,fancy fridge, everyone is having a plasma tv at home fast internet plan,new tech, I saw the american garages they are filled to the brim.They got richer and forgot how was it being poor.I look at their houses and EVERYTHING is NEW.
Most of them are not living house-work-house.And most of them are just consuming, nobody is producing😂😂😂
63% dont have 500$ for emergency bill.😮....imagine you're diagnosing with some serious health issue 😮 or lose your job next day
Haven’t changed my lifestyle nor has my paycheck kept up with living expenses. If it wasn’t for overtime I’d be in trouble so don’t blame this on lifestyle creep.
overtime is great . it also keeps us from spending money since we are at work . budgeting for investing is the next level .
Overtime is a trick. You start working overtime so your coworker starts working overtime so you now have more money. Then, because you have more money prices go up due to demand. So now your neighbor works overtime to keep up and so does your spouse and your kids. Of course now that we're all caught up we can increase prices some more.@@NWforager
@NWforager it's sad the we have to rely on overtime
@@luckybreak360 i worked jobs that paid double time and a half for OT . so it was all about getting past 40 hours . its still that way at 1.5 for OT personally .
Sometimes, you’re just poor. There are more people who make good money, but manage it poorly than there are actual poor people in this country
The power of self-control is an effective tool in avoiding lifestyle creep. When you learn that you have a better life, however much you earn.
To get ahead you must ignore society. Always live below your means. Let your friends (and relatives) go house poor, car poor, vacation poor, restaurant poor. Marry someone who is on your side financially. Drive old cars and don't give the banks anything. Invest the rest as a way of life and before you know it you'll become a mini-millionaire. 🤑🤑
Marrying well definitely helps with building wealth. Most important choice you'll ever make.
Live below your means without credit. Some people will always be renters. Homes have expensive maintenance, insurance, and forever property taxes. It’s More than just the monthly mortgage. Until you pay off the house, the bank owns it. You’re paying water, electric, and maintenance with the chance the bank could repo if missed a payment. If you can not pay off a car in 3 years probably too much car. If you’re buying a 10 year old car it should be cash not finance. Save before the next car which means lower interest and lower monthly payment.
Still owning a home for forever would be more beneficial than renting since rents tend to increase. I don't think property taxes are that bad.
Bang on. I was in real estate and never wanted to buy after seeing the problems involved.
@@justinnl4332Your country needs (a) rent control (b) medicarre for all. Solved.
Renting is better than mortgaging m. All debt including mortgage is bad
Live below your means but within your needs
if people don't spend money, the country itself will cry and say we need to promote people to spend money for economy lol
I’m in a situation where it feels like I’m living paycheck to paycheck, but I’m putting close to $1400 towards my retirement every month. 😅 I technically can, but do not think I can afford a vacation or any luxuries, because I treat retirement savings like an expense.
Yup I see my income after taxes and contributions and I'm like where's the rest? But then remember I put in 13% of my $120k income into 401k and Roth. Also my tiny 1 bed apt costs 2.3k so..... 😢
Retirement is an expense for the future. If one ignores it, it will come back and haunt you.
It may *feel* like you’re living paycheck to paycheck but it’s not.
You rich
I can relate to you. I save about 1400 a month in 401k, then I get paid and separate my check to different envelopes like bills, vacations, emergency savings, and at the end I feel broke ! lol
I was wondering where my cousin was getting money to do countless international flights 🛫 I hope it's not credit cards 💳🤞
Drug mule! 😂
I don't understand why people want to own more and more. I hate owning things. It's just more clutter.
It pays to be a minimalist!
Even our government continues to overspend. It does not pay off its monthly debt, balance of 34 trillion. It still is borrowing and spending .
yeah but they can always print more dollars and create inflation .
Yeah because the rich have spent the last 50 years infiltrating the government and cutting their taxes.
Thats what making our life miserable!
Some people are not bad spenders and they make a little more money and then rent goes up, internet goes up, insurance goes up, groceries go up, gas goes up …… have grace for those who can’t afford to save! Even though it’s not my situation I can understand how someone could end up financially screwed from simply existing
The amount of happiness has zero correlation with the amount of spending. You can get just as much enjoyment from simple stuff. Ones you accept it, you'll automatically become a rich person and always have all you need. But if you accept the opposite philosophy you would be constantly disappointed that your wishes wasn't met. It's not about the amount, it's about satisfaction.
hedonic treadmill 🐀🐀
Yup! I live in expensive California BUT absolutely love the beach and weather. Just walking the beach brings tremendous joy. Outside of nature it's my sweet dog and family. The only materialistic things I enjoy are a nice smart phone, cuz I'm an engineer and use it for work and play, and some jewelry. Wanted this fancy diamond, gold, and black diamond ring. Waited for a deal and got major savings.
I'm a Millennial. Throughout my high school years up until my early 30s, I was a supersaver that hoarded as much money as possible. In my mid-30s now and my income has significantly increased but sadly my reaction to that income bump was to start spending it on everything I deprived myself of buying for about 15 years. For the past 1.5 years I was paycheck to paycheck, but more recently I've been going into debt just to meet basic needs. I'm disappointed and even embarrassed because I had zero debt my entire adult life and actually had savings unlike my peers, up until relatively recently. I used to have a 6 month emergency fund but now I have nothing.
I mean... quit spending it...
You can start over again 😊
@@can1687 thank you for your positive encouragement
It is understandable, money has a large psychological component to it. Your saving mindset was a good idea, but it went too far. So you tried to adjust but went too far the other way. You cannot change the past, I hope you learn a balance in the future between saving while not totally making yourself miserable. Best of luck to you.
@@AnalogWolf thank you very much for being so validating and encouraging. I feel a lot better now and determined to get back on track, with moderation.
Do a video on wage theft
I live in a third world country. My current salary is just around $400 a month.
Or $4,800 annually. I am still thankful for my life and generally have a better life than ordinary people in my country tho.
You guys are lucky. Start saving and don't buy useless things.
They want all the flashy things and rack up debt. I have people in my extended family who have an household income of 150K in LCOL areas but still live paycheck to paycheck and I know their life style is just too much when it comes to spending. I grew up in the third world and kept saving and investing ever since I immigrated to the US back in 2007 and today our household have 3 million dollars in networth. We've never spent a dime on flight tickets since 2009 except for taxes and TSA thanks to the greatest financial product the US financial system developed - the Credit Card. And have flown around 100K+ on flight travel for free thanks to credit cards.
I get more of a kick seeing how little I can spend because I dont like the world elite and dont want to contribute anymore.
It’s also about what your parents teach you growing up with money. School doesn’t really teach you anything about what to do. For me I haven’t saved anything since I started working at 16 and I’m 28 now. I finally make 100k a year and I still haven’t saved anything because I never grew up with money discipline
James are you saying it's your parents fault for not teaching you?
@@mmp495no I just wish they talked to me about what’s best to do while growing up and making sure you don’t get carried away spending all your money on dumb stuff. One major thing I’ll teach my kids down the road is being financially responsible and ways to invest your money to grow it. Starting those things at a young age would be highly beneficial
Yes and no. They should teach you but many don't. You're an adult, if you care for your future you'd learn just use the device you're watching RUclips from.... It's your fault after 18 sorry bud. I grew up dirt poor first gen American. Parents didn't know anything been on my own since 17. Now I'm 29, earn $120k, no debt, and net worth of $115k. Some of this is common sense. Are you contributing to a 401k? I put 13% income into it with some employer match.
@@djm2189 Agree 💯. It's up to us as individuals to learn and do the right thing with finances whether our families did good or bad. You did great! I learned most of my finances from RUclips and listening to audio books free from the library. I paid off my house and my rental. Life is safe, secure and peaceful.
Where do you live and what do you do to make 100k?
I don't understand why it is so hard for other people to say "no" to spending money. A penny saved is a penny earned. I have saved 90% of my earned income over the years since college.
Dude, you can only save 90% of your income If you don't own a car, live with your parents, have no student debt or medical bills, and work at a restaurant to get free food.
How 90% ?
What bills do you pay?
🧢
Social media and status. People wanna keep up with the jones.
Yes, social media is a big problem today
Exactly, People like to blame other people for their misfortunes but they should really take a look at themselves.
The reason is everyone is gouging us and nobody steps on to help. As long as corporations can bribe politicians they’ll never bother to do anything to help regular people. Inflation out paces salary increases. It’s not a better lifestyle issue. It’s a price issue and they’ll keep doing it to us because we’re all ATMs.
I think people expect to "have it all" now. I didn't buy my first home until I was 40 and had a substantial down payment. I didn't go on luxurious vacations, etc. in my 20s. I had a bean bag for a couch, etc. I think part of the problem (along with inflation, etc.) is people don't want to delay instant gratification.
nah wages are being stolen broad day and they still have the audacity to pass greedflation by the donor class as inflation.
buying stuff we dont need to impress people we dont like
With money we don't have.
Recipe for disaster every time.
“Spend less than you make” - Dave Ramsey. Simple concept to understand
It is with great pleasure that I appreciate the making of this CNBC Documentary.
In all aspects of life, it is necessary to have very well-structured financial planning. Obviously, managing Financial Resources is not trivial.
Lifestyle Creep: refers to the phenomenon where discretionary consumption increases on non-essential items as the standard of living improves. One detail of the statistics is that 6 out 10 people surveyed said paying for everyday expenses negatively impacted their mental health.
Revenge Spending: also known as revenge buying is used to characterize the incremental increase in consumer spending (versus normal levels) after an unprecedented adverse economic event.
Best Regards!
I wish a blessed year.
Stuff costs way more than it used to just a few years ago. And I don’t remember a time in my lifetime where things really dropped in price across the board permanently so I feel this is where things will be for the most part.
I was blessed to be able to make a transition in career at a time when hiring was going on and salaries were up. Thankfully, I am comfortable despite the current economic times. I pray relief comes to those that are struggling at this time.
Yeah, prices rarely drop. That's by design: the Federal Reserve artificially sets interest rates to cause inflation at about 2% per year so the price of things is always creeping upwards.
If we could stop the Federal Reserve from applying this 2% inflation pressure to all of us, the cost of things wouldn't be under constant pressure to become more expensive.
Wages simply have not kept up with the cost of living. It's a terrible reality
Correction they have been stopped form increasing by the rich so they can take more for themselves.
"They save and save and save" and "the average person doesn't have $1,000 in the bank" which one is it?
Still waiting for proof
I think one overlooked influening factor is the rise of social media. All these influencers flexing their purchases and lifestyle has everyone thinking having nice things is normal.
Nothing makes me more sad than people (especially those I love and care about) overspending and being stressed about money. It's one of the most sad things in the world to me. I also try to save and I don't overspend, but it seems that being worried about money is becoming increasingly more prevalent in our society due to inflation and worries about the future. It's just all sad. I feel like humans shouldn't be this worried about money. :(
I worry and yet I have zero debt. No mortgage either. But my husband is 60 and wants to retire in 2 years and I’m 58. We don’t have a huge savings. And I don’t want to just rely on social security
Being debt free is the greatest freedom. Paid off $125k in 5 years following Dave Ramsey's 7 Baby Steps. Best decision I ever made. Anyone can do it with hard work and a plan.
I give you one example. In 2017, I bought a rice cooker that last until 2022. The reason I replaced it was because the wire of the rice cooker accidentally placed on the gas ranged while I was cooking. I bought a replacement of it, and the opener of rice cooker got broke and need to replaced it just the other day. So that rice cooker lasted almost 2 years, the more "modern" one.
My point is things like these were never part of our budget. We need to have higher quality back in our stores again.
Mandated warranties for appliances is the only way to establish a floor on quality
I'm guilty for engaging in retail therapy. Fortunately for me, the impact has been minimal. Nowadays, I spend within my budget and live way below my means. The feeling I have from financial freedom is far greater than buying the next best thing.
Many people still dont realise what they need and what they want. They just buy everything they fancy at the moment and soon realise they rarely use it
"Living paycheck to paycheck" doesn't mean uncontrolled spending until you're bank account reaches zero 🤦
The past 3 years, horrible inflation compounded yearly. Yes inflation slowing but still present. One reason wages will never keep up with cost of living. Inflation, the hidden tax
proper investing beats inflation by several percent thought , right ?
It's not just that. The majority of my paycheck goes to my mortgage (I got lucky and refinanced when rates were low). But the rest of it often goes to electricity bills and food neither of which are getting cheaper. I usually don't have a lot to put away into savings at the end of the week. And they're telling us our electricity bills are supposed to go up more next year.
The honest truth is that having a LOWER standard of living than you are allowed to is irrational. You are alive now. You may be dead tomorrow. What’s the point of saving all your money for a future that may never come.
That said, debt is aggressively marketed and wages haven’t kept up with inflation. The country can support a high standard of living AND can lend citizens the money. So the only real problem is the powers that be keeping wages down and aggressively marketing debt.
This video is all over the place, there is no cohesive discussion and half of the conversations don't match the section that they are in.
I always lived beneath my means and never used credit cards. Saved money every month and retired early, even though I worked in a low paying profession.
Growing up in India, all my life my parents expenses went into 3 buckets (Clothes, Food, and Shelter) in that order - clothes being the one where they spent the least and shelter being the one they spent the most of their income.
Once that was spent - the majority of their income was diverted towards education (school tution fee, books, supplies ) and healthcare (every month they will put a predefined % of their income for any unexpected healthcare crisis - which eventually took place and we were able to survive.
Things like vacation, luxury items, eating out and brand specifc apparel WAS NOT EVEN something we considered as NECESSARY.
and yes we were the Middile Class who sailed through their life happily.
When I moved to USA, i realized that the Americans are just spoilet brat who has a mentality that FOOD, CLOTHING AND SHELTER is their BIRTH RIGHT and they dont need to pay for them (even though they have to).
Education and Health Care has become and OPTIONAL item where the current mellinial generation are NOTEVEN considering them as necessary.
And to my buggest cultural shock - things like vacation, eating at expensive restaurant and buying much Expensive apparels have become an essential part of their lifestyle.
This whole issue is man made as mellinials (in the USA) have their priorities upside down.
Perfectly said
Did your parents have taxes to pay?
And if you were so happy in India with your family, why would you move to America with spoiled brats?
It's not logical to leave a country if you are happy there
Oh shut up. I have a lot of relatives from India and they’re the worst with money. They’re exactly the kind of people this news report is talking about. Lifestyle creep is insane amongst this newer crop of Indian immigrants. You can’t seem to be spending it fast enough.
My brother’s wife’s cousin is here to study. Left a perfectly good job so she can buy more things here and live a fancy lifestyle on credit.
So stop stereotyping people.
Don’t let the narrative fool you. People aren’t living paycheck to paycheck because of wants, there is no refuting that cost of living (housing, transportation, and insurance premiums) have all increased, while middle management to entry level positions salaries have not adjusted to meet rising cost of living.
I enjoy CNBC’s content, but this is a ruse to make you believe that you are the cause for your diminishing budget margins.
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
The advisor that guides me is ‘’Aileen Gertrude Tippy’’ most likely the internet is where to find her basic info, just search her name. She's established.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Anytime I hear someone gripe about not having financial literacy classes in k-12 school, I just think "gee if only we taught kids not to do drugs, then we wouldn't have a drug problem!" It's the same naive mindset. People are still going to spend more than they should. It's human nature. And we're constantly, every day, barraged with ads and imagery meant to trigger that spending. That being said, the dimestore wisdom, Dave Ramsay type stuff is also nonsense. The number of comments I see from people online about how buying a house is dumb because mortgage debt is bad.....just oof. The best wisdom about money is like Michale Pollan's advice on food ('eat food, not too much, mostly plants') - spend money, not too much, mostly on things you actually need.
Maybe take some responsibility for your own life?? Are u not a adult? lmaooo
Glad you are not in charge of education you have no clue
Done whining kid?
I am Croatian and I lived and worked in Croatia, Germany and the US. I will compare Germany and the US for this case.
If you ask 20ish year old German about how much money they owe and how many credit card they have, they will look at you like you are crazy. It is not common for people in Germany to base their material lives on depths and credit card limits. Most of them have no depth or very little and one credit card and rationally spending their money.
On the other side, if you ask 20ish year old American about their depth and amount of credit card they obtain, it is a different world. I met 25-30 year old people who owe from 17k to 55k ( no student depth), have 5 or more credit cards and zero savings (even though I met a lot of people with relatively big savings). It is sth about american mindset and perspective of what depth is and purchasing based on loans and cc limits. Very important factor is us credit score, which is not based on how you manage your money, but how you manage your depth.
Money I earned and saved in the US is double and more than the one in Germany, with pretty much same tax rate of around 30%. So you can earn and save money in the US and have a decent life, you just need to know how to manage your personal finances.
$100k in a major urban area with a family is not the same as $100k single in a suburban, mid-sized (or smaller) urban, or rural area.
Also, it's difficult to call things like "going to the doctor" or "regular oil changes" or "inflationary food spending" as "lifestyle creep," but so many of these "experts" call it that. ("Did you need to go to the doctor for the flu?"). The fact is, that the minimum for many families in metropolitan areas is north of $100k (and they can't move because the jobs are all in metro areas). The bigger problem is that pay increases have not kept pace with inflation (not even remotely)
You did not mention the amount of young people that end up moving back in with their parents because of expenses
There's nothing wrong with that. I'm doing it too. It's the people's perception that's the problem. Basically its your problem not mine. I'm perfectly happy living with my parents. Stop putting your insecurities on to other people when its perfectly fine and normal to do so.
Every time I learn something new about America I'm left with more questions. Is oil change optional in the US? What about road worthiness and road safety certification?
Oil changes are not optional. Engines will seize if their oil is not changed. They are worthless at that point. Road worthiness and safety certifications are dependent on which state you live in. I live in Indiana and we don't have those tests or certifications. We pay for yearly license plate registrations and we have to have a driver's license and auto insurance. Those three things are required in all of the USA.
It's interesting the video compares two kinds of scarcity: when you are living paycheck to paycheck and when you are scared to spend. There's a third way that's not considered here: abundance. You have anything you need, so you dial down your buying. When you get a promotion, you move the money to additional savings (aka, financial freedom). You may want to quit one day, or start a business. Money in the bank is financial freedom. Stuff? Very short term happiness, if any.
If you earn more, you should PAY YOUR CREDIT CARD. You need to save for those medical emergencies!!!!!