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View Full Version : 2006 Personal Savings Drop to 74-Yr. Low



HocusPocus
02-01-2007, 09:07 AM
I know lots of people who are living paycheck to paycheck but according to this many more are living beyond that. We have a set limit we like to keep in savings and if it hits that limit then "we are broke", i can't imange not having money saved up for emergencies.
WASHINGTON (AP) - People once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago.
The Commerce Department reported Thursday that the savings rate for all of 2006 was a negative 1 percent, meaning that not only did people spend all the money they earned but they also dipped into savings or increased borrowing to finance purchases. The 2006 figure was lower than a negative 0.4 percent in 2005 and was the poorest showing since a negative 1.5 percent savings rate in 1933 during the Great Depression.

SummitKarl
02-01-2007, 09:32 AM
I know lots of people who are living paycheck to paycheck but according to this many more are living beyond that. We have a set limit we like to keep in savings and if it hits that limit then "we are broke", i can't imange not having money saved up for emergencies.
this is what happens when C.O.L. increases don't match rising oil prices:mad:
the experts say always try to keep a 6 month cash reserve;)

lucky
02-01-2007, 09:36 AM
My grand pa taught me to live off the land - his taught him to be a bussiness man .... got to love hank :) yea i can relate to no savings - but thank god for line of Credits :) :D

Ms.Havasu
02-01-2007, 09:54 AM
Never been very good at savings, our investments are in real estate which doesn't show up in these stats.

HocusPocus
02-01-2007, 10:06 AM
i doubt we would be able to last 6 months on our savings alone. we bought our house 10 years ago in CA and the place in Havasu 18 years ago and have never touched the equity on either place. i would hate to have to sell either place but if times got tough i would do that before i cashed out any equity.

Jyruiz
02-01-2007, 10:19 AM
Now a days it is real hard for people to save money, with everybody trying to keep up with other people and all. We are lucky I guess as we don't require such luxuries, but we are also setup to where if either one of us loose our job, we can survive with a single income. If we both loose our jobs, then we have a year to find new ones.

Pismo
02-01-2007, 10:22 AM
The liberal tax code unfortunately rewards debt and punishes savings and investment therefore......................the inevitable.

boatnam2
02-01-2007, 10:29 AM
i dont have shit in saving and put everything extra i got in my 401k.

dumbandyoung
02-01-2007, 10:48 AM
I am horrible at saving money.:D

HocusPocus
02-01-2007, 10:57 AM
i dont have shit in saving and put everything extra i got in my 401k.
i would consider 401k's and IRA's a savings account which makes up the biggest bulk of what we have saved, i don't have much in a regular bank savings account.