Americans are saving much less. What a surprise…not! You know that old saying by Santayana “Those who cannot remember the past are doomed to repeat it”. It really rings true in this situation. It seemed America was on the right tract for a quick minute.
The great recession 2007-2012 was an ugly, ugly one for a lot of people, and the effects were felt all over the world. The part of it that really resonated with me was the Financial Crisis and Mortgage Crisis where the “too big to fail” banks were rescued by the Federal Government. Here we go again, as it seems we just can’t learn from the past.
Americans are saving much less: Lessons unlearned.
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Back in those days, I had one of those blogger accounts and was able to get a copy of the one page application form the banks were required to fill out in order to access federal funds. They contain of such ditties and hard to answer questions 🙂 such as:
- What is the name of your bank
- What is the address of your bank
- How long have you been in business
- How much do you need?
I can’t remember the other mind blowing questions, suffice to say l have had to fill out more paperwork when l go to a new dentist. I remember feeling frustrated. A lot of my friends were suffering, as was l. I was crippled by debt, the “keeping up with the Joneses mentality” was strong then 🙂 ,
That realization that life was short made us focus on debt reduction. It took us another 3 years to clear our debts, scrimping and saving. Once we reached our target goal, we proceeded to sell it all. All the crap that gave me joy for about a second (new shoes and expensive handbags were my addictions) were sold for pennies 🙂 .
The memory is still fresh in my mind. What amazes me is that so many people have really short memories. They remember the past, yet are still spending like there’s no tomorrow. I suppose the fact that declaring bankruptcy is not something shameful in America might have something to do with it, after all big banks do it, look at who sits in the oval office.
He’s done it a few times with no regrets and is often rewarded for it. Why wouldn’t the ordinary person think they can spend freely without consequence. One of my friends lost her house during the crisis and declared bankruptcy.
Within a year, she was already getting offers for credit cards, some with up to $5,000 credit line..so she caved in and started the cycle again. Oh..they have a new house, this time in her partner’s name. A life lived on credit, down to her groceries and Raiders tickets. She’ll simply do it again she says. Ain’t that America? People really need to realize the difference between wants and needs and how it affects their bottom line.
According to this article, consumer spending has hit a new high, savings have hit a new low. Soon, it will be time to pay the piper. The short attention span will come to haunt some..again. I was compelled to become frugal and l don’t feel deprived, so it can be a way of life. Here are some steps to take to assure yourself of a better future.
Related Reading: Get your financial picture free
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Do you remember the past? How did you hold up during the crisis?
It’s an issue- as folks continually see a soaring stock market (but a stagnant pay check), they want in on the seemingly endless boom. But, with that stagnant pay check, a shortage of cash is inherent in that quest.
Then of course they jump on the Bitcoin wagon to get themselves in more debt. With the hacking and scammers of the cryptocurrency companies, it’s going to be interesting to see how it plays out.
It is amazing how some people think…
The “system” is designed for profits, not for helping people out, regardless of if that person knows what they are doing ro what the repercussions can be. Look at the housing market and the banking situation and the bailout. Had banks not been so greedy offering loans to folks who truly could not afford it, the US would have been in that crisis.
But then again, did the banks stop what they were doing? How many people even think about that today? All the BILLIONS in bailouts. And yet, late fees, application fees, monthly fees, interest fees… ALL continue!
Sigh.
I try to tell my friends that all the time. The system is definitely designed for profits. No matter the 0%, the air miles etc. It’s rigged and they have no desire to hep you get out of debt. I don’t know how hard it is to understand something that seems to simple to me. I know the banks are terrible, but it doesn’t take a genius to figure out that if you make 30,000 dollars a year, you can’t afford a 500,000 dollar house, but greed gets in the way. Yeah.. it’s enough to make you throw in the towel, isn’t it? 🙂
Frugality should be a way of life. On the other hand, paychecks are not stretching as far as they used to, making it difficult to set aside savings.
The more reason why people should be frugal l think. The fact that the salaries are not keeping up with the cost of living . People just need to wake up and realize that even if you can’t save, you need to stop spending and incurring more debt. 🙂
LOL @ “Ain’t that America!” Congratulations on getting out of debt! I am shocked about that easy-peezy bank bailout application form.
I couldn’t resist. I was going to write the whole John Cougar lyrics 🙂 . I was shocked too that a single piece of pager could get you millions and millions of money!!! Too big to fail my aunt fanny! 🙂
Some people need constant reminders about spending, charging and getting in debt. I am happy to say that hubby and I don’t buy anything unless we have the money needed. But while I do use credit cards, I have never paid an annual fee or any interest. I pay the bill in full each month while I collect the cash back from them. I will tell people you have to be very strict with yourself when it comes to credit and debt.
Yeah. You definitely have the right idea on the way to screw the big companies. Get the benefits without going into debt. They however prey on the ones without discipline. Most people start out by saying they will pay things off at the end of the month, but then they end up slipping and before you know it, in debt up to their eyeballs which they love.