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
Do you remember the past? How did you hold up during the crisis?