Best Posts in Thread: Most Americans have 'alarming' amount in savings

The average American is spending $2600 a month on rent, food, and bills like utilities, cable/internet, cell plan, car payment, gas, and such. Add in any entertainment or extra stuff like going to the salon, getting nails done, kids, and so forth and it just gets crazy. This means before taxes that average American needs to make about $3500 a month ($42kyr) just for those *basics* as they see it and that is before any entertainment, kids, and what not.

Now does that mean they don't get paid enough? Nope. It means they are horrible at budgeting and cutting out down on what really isn't needed. Such as instead of a $1200 month rent find a cheaper studio at $700 a month or a shared living space which can often still be had for $250-350 a month). Instead of that nice cell-phone plan how about a $30 a month prepaid and limit your usage outside of wifi areas where you use things live viber, messenger, and such. Cut out the cable and go for a $50 a month internet plan. Instead of that new nice car buy something $5-10 years old or even the public transit which most month passes are still $40-50 a month and don't require gas payments. However commerce has taught people they need their own space even when single. They need their own car, they need bigger and bigger, more and more.

 

Either at my ranch on the Big Island of Hawaii, condo in Vegas or avoiding traffic in Dumaguete (if I'm not gallivanting the world).

 

It's called living beyond your means. When people making 100 K plus fall into that low level of savings they obviously made some expensive choices.
Banks are the modern day slave masters.
On a slightly off topic note; here credit card companies charge about 42% per annum. If your card has an outstanding balance the interest will be charged against all purchases from the date of purchase until there is no outstanding balance for 2 consecutive months.
I don't know if they have that practice in the U.S. but that's a bottomless pit if ever there was one.