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.

 

Maybe they should vote for politicians that will lower their tax bite, then they would have more money.

Tax Freedom Day® 2015 is April 24th

By
Kyle Pomerleau
Tax Freedom Day® 2015 (PDF)
Key Findings

• This year, Tax Freedom Day falls on April 24, or 114 days into the year.
• Americans will pay $3.3 trillion in federal taxes and $1.5 trillion in state and local taxes, for a total bill of more than $4.8 trillion, or 31 percent of the nation’s income.
• Tax Freedom Day is one day later than last year due mainly to the country’s continued steady economic growth, which is expected to boost tax revenue especially from the corporate, payroll, and individual income tax.
• Americans will collectively spend more on taxes in 2015 than they will on food, clothing, and housing combined.
• If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 14 days later on May 8.
• Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work in order to pay the nation’s tax burden.

 

I'm all for lowering taxes (and lowering government spending) however in honesty I really doubt that would result in Americans saving more of being more financially stable even. The vast majority have been taught to spend as fast as they make it if not faster. If they have an extra $100 or extra $10,000 they will just find something to spend it on. Look at all the tax refunds already which many people managed to get by without that money so they *could* save it but instead they preplan what to spend that tax refund money on sometimes months before it ever arrives.

Back in 2013 I returned to the states for a couple months for personal business. I lived off of $700-800 a month while there in my normal monthly expenses. (Of course I brought a number of things back with me but those aren't regular expenses by any means and some gifts). I could have easily spent more for a *higher* standard but I would rather save the money. I rented a room (Las Vegas btw so NOT a cheap place) and shared utilities and such. I wasn't staying with friends or family at all (have none of those left in the states). Yet I constantly hear on how people can't survive off of minimum wage or even $10 an hour yet I did it on less.

 

When I was younger, watching late night TV while having the munchies, I remember watching all the infomercials about how to get rich using other people's money to buy real estate etc. So when it gets ingrained that you make money by borrowing money then the general population start to scorn those who save and use their own cash. But with age comes wisdom, even though the savings are gone already.