Savings Rate Goes Negative

[VJW]

SAVINGS RATE AT LOWEST LEVEL SINCE DEPTHS OF GREAT DEPRESSION IN 1933

(AP) – Americans' personal savings rate dipped into negative territory in 2005, something that hasn't happened since the Great Depression. The savings rate has been negative for an entire year only twice before - in 1932 and 1933 - two years when the country was struggling to cope with the Great Depression, a time of massive business failures and job layoffs.

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[jmjj215]

Re: Savings Rate Goes Negative

Saw this yesterday or the day before as well. Scary, scary stuff.

[Ima saver]

Re: Savings Rate Goes Negative

Gosh that is awful, but when I try to talk to someone about money and saving, all I get are lines like: "you don't see a u haul behind a hearse" People around here are so adverse to talking about saving at all. I am on a local forum and I try and bring up money questions and I just get ignored.

[Lostsoul33]

Re: Savings Rate Goes Negative

It is very scary isn't it. Wow!
You are right Ima saver that people really don't like to talk about money. It's too bad because as is proven here, people can really learn a lot from eachother.

[jmjj215]

Re: Savings Rate Goes Negative

Ha, I really like that uhal-hearse thing. I'm going to have to start saying that!

[Ima saver]

Re: Savings Rate Goes Negative

They are saying that you can't take your money with you, but personally, i would like to be comfortable while I am here. The only way to do that is to save some money and live beneath your means.

[Snoopy2645]

Re: Savings Rate Goes Negative

No suprise to me not really anyways not with everyone driving new cars building new houses buying it up at the expensive stores. Every couple seems like has to both work to try their best to stay out of BK & keep thier cell phones on!!

My dh calls me a grinch but says if I wasnt we would be on the same boat as everyone else we know LOL!!!

[fiffer010]

Re: Savings Rate Goes Negative

Since we are aware of the negative savings rate. What do you think is the cause of it?

[locolorenzo24]

Re: Savings Rate Goes Negative

The gimmie, gimmie, gimmies. We teach our children to scream until we give in, than they grow up and repeat our mistakes. Even better? We can't say no to temptation, and want more than what we really need. Could I use a bigger apartment? sure. But I'd rather scrimp for a few years and live comfortably, than be starving with a bigger space to heat and furnish.
Society is so focused on keeping up with each other that when you don't, you are the ODDBALL! But I'd much rather be the oddball than behind the 8-ball.

[cercis]

Re: Savings Rate Goes Negative

Loco, don't forget the administration urging people to spend to "stimulate the economy".

I listen to Radio Classics some and the commercials then were so amazing. They encouraged people to save and be thrifty to help the economy. These were during and after WWII.

Big difference from what we here now. We're told that we need to spend, spend, spend. Our economic numbers are based more on consumer spending and consumer "confidence" than on anything else. Consumer, consumer, consumer. Spender, spender, spender.

We're in grave danger and our administration is leading the charge over the cliff while we lemming consumers follow.

I agree about the space issues. I'm so tired of hearing about how tiny 2200 sqft is. 2200 sqft is HUGE. It's ample room for even a family of 6. You look at houses built in the first part of the 20th century - 1200sqft was a huge house then. People raised 5-6 kids in 900sqft 2 bedroom homes. Now we want 5-6 bedrooms for 2 kids.

[coffeebreak]

Re: Savings Rate Goes Negative

Since we are aware of the negative savings rate. What do you think is the cause of it?

It's too easy to get credit. How can anybody save when they have 5 (or more) minimum payments to make every month? If people would just put $50 in a savings account, like ING, HSBC or Emigrant Direct every month, they would not even miss it after a few months. It's like deducting something from your paycheck; you never see it so you don't miss it. Everybody should put aside a year to shift their debt away from credit to savings.

I use credit cards very little. If I want to buy something big, I transfer money from ED (ING till May) to my bank then buy it with a debit card. If something unsuspected comes up I try to use American Express or, as a last resort, Visa.

[terry1156]

Re: Savings Rate Goes Negative

Correct me if I'm wrong, but the numbers a a bit misleading. I don't think they include the increased value of housing and / or retirement funds. I'm not saying that it's a good thing, but just that the numbers tend to be thrown out there without full disclosure.

For example, I spend more than I earn. I'm retired and I have my assets in place so that I can do that. I still watch my money and don't spend it on things that I don't need, but I'm one of the ones contributing to the non savings numbers.

[sweeps]

Re: Savings Rate Goes Negative

You're absolutely right, Terry. Not So Negative Savings

[Tree0164]

Re: Savings Rate Goes Negative

My personal savings is low right now. My goal is to be it back up to levels where it needs to be. However we are funding retirement at a decent rate.

However a lot of folks are not taking advantage of company sponsered retirement plans and living beyond their means.

[Ima saver]

Re: Savings Rate Goes Negative

I agree with coffeebreak. when I was young, I would save, but the money got used for emergencies and never seem to grow. When i discovered mutual funds, I just had $50 a month taken out of my checking and (really $150) and put into three different mutual funds. They really grew and I have not touched them since I started them in 1988. I also take the profits from our spec houses and save that in an interest bearing money market checking account.
I think most people don't realize that even a small amount of savings, done weekly or monthly, can eventually turn into a good sum. Even when I was a kid, working for 33 cents an hour, I managed to save something every week.