Clementine
Platinum Member
- Dec 18, 2011
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These statistics are claimed to be true:
1. 50% of American wage earners earn less than $30k.
2. 63% of Americans can’t afford a $1,000 emergency.
3. 80% of American workers live pay check to pay check.
4. Since 1973 American productivity has increased by 77%, yet hourly pay has grown by 12%. If the minimum wage was tracked to productivity, it would be over $20 an hour today.
5. 41% of American workers earn less than $12 per hour, with most without employer provided HC.
6. Since 2008 the federal government and the Fed created $26 trillion out of nothing. Was any of this enormous sum spent on infrastructure, public education, universal HC, bail out 5.1 million people who lost their homes?
Not a pretty picture for the poor and middle class. Hopefully things are improving or we are headed for big trouble.
Not sure how accurate those stats are, but things have changed since I was a young man starting out.
Back then, I was taught:
1 week's pay is for housing. The next week's is for food and bills. The next 2, you either spend or save.
It doesn't work like that now. It still does for me, somehow, but not for many.
Certainly not for anyone in the position I was in back then.
I was making $1150/wk back then..that included side jobs.
So many live beyond their means. Because of the Community Reinvestment Act that Clinton revived, banks were forced to make loans, knowing most people couldn't pay them back. We also have a credit card problem. I've met so many young people who don't believe in living within their means. They want the new car and big house, which puts them in deep debt. Back in the day, most of us started out with a small apartment, often filled with hand me down furniture, a used car and we lived on a strict budget. We kept working until we could gradually afford to increase our standard of living. It kept us out of the deep debt. Somehow, this generation believes they are entitled to have everything now and there are too many ways for them to get it, even though it's not wise to go that far into debt. Their budgets are so stretched that even the slightest disaster, like an unexpected accident that keeps them from working or a major repair that's needed, will break them and they could lose everything. If they had lived within their means, they would have money saved for an emergency.
Many of the poor are uneducated. Many of the poor had children out of wedlock. Too many unwise decisions make it difficult to get ahead. Those on welfare will forever be at the mercy of politicians, who constantly promise them more in exchange for their vote. And they blame their predicament on the wealthy people, as if somehow they took something from them. Can't lose what you never had. Living off government means they will never have money saved for an emergency.
Even those who work, but are unskilled and uneducated, will barely get by and live paycheck to paycheck because they aren't qualified to get promoted in the company. Being unable to advance in a job means they will never save enough money for an emergency.
So, the lesson is clear. Finish school. Wait to have children till you are married. Take additional schooling to qualify for better jobs. Live below your means so you can easily support yourself and save money.
Almost all my friends live in nice houses, drive nice cars, and have money saved for retirement. Most of us have some luxuries, too, like boats and campers. Most of us started out with crappy jobs but we all got better jobs when we finished school. Even the ones that didn't go to college managed to get promoted at their jobs and slowly increased their income. We lived below our means. It's not rocket science. I get so disgusted when I see people either quitting school and having babies or young people working but still thinking they should have houses as nice as their parents even though it's not within a reasonable budget for them.
It's this attitude of "I deserve everything" that causes people to think they shouldn't have to work years to build the lifestyle they desire. We all want something nice but it takes years to get there.