Consumers are so demoralized by inflation and high rates they've given up on saving for the American Dream and are spending money instead, economist says - eviltoast
  • NightAuthor@lemmy.world
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    6 months ago

    No, but even for those of us with some extra money… we’re not building a savings pile for a house or anything… we’re just spending the extra on doing things and buying stuff beyond our needs.

      • Burn_The_Right@lemmy.world
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        6 months ago

        Itty bitty savings will never lead to wealth either. The working class and “middle class” that remains has a low enough income to recognize this.

        • Ullallulloo@civilloquy.com
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          6 months ago

          It depends on what you call “itty bitty” and “wealth”. Saving $1,000/month is doable for many people and will make you a millionaire by retirement age, even adjusting for inflation.

          • Burn_The_Right@lemmy.world
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            6 months ago

            Bro, what?! Who the fuck can save $1000/month with current rents and home prices? 🤣

            I thought you were serious for a second! Good one.

          • Psychodelic@lemmy.world
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            6 months ago

            lol. It’d actually be kinda disrespectful if it wasn’t clear you’ve never met a struggling American in your life

          • sgtgig@lemmy.world
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            6 months ago

            $1,000/mo in savings is pretty difficult for most people.

            $300/mo, invested earning 8% for 40 years, does get to a million though (10% rate of return + 2% interest safe assumption.) This is as $60k/yr job, contributing 3% to a 401k with an employer match, not something that’s particularly rare.

            I know prices are high and people are hurting… but there’s a lot of people who are just not really trying.

    • StaySquared@lemmy.world
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      6 months ago

      we’re just spending the extra on doing things and buying stuff beyond our needs.

      That’s one of many problems and majority of the people who fit this category like to point the finger at anything and everything else… when the problem is themselves and their spending habits.