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Getbig Main Boards => Gossip & Opinions => Topic started by: Palumboism on July 12, 2016, 02:23:56 PM

Title: Chinese Savings VS. American Savings
Post by: Palumboism on July 12, 2016, 02:23:56 PM
According to Credit Suisse 109 million, Chinese have savings network that ranges from $50,000 to $500,000. The momentum gained traction in 2000; since that time, China’s Middle Class has grown at twice the U.S rate.  To avoid changes such as unemployment, Credit Suisse, measured wealth rather than income. Hence, these numbers are quite shocking, when you consider that the average worker in the U.S does not even have $5,000 in savings. Makes you wonder which country is 3rd world and which one is 1st world. 

http://tacticalinvestor.com/chinas-middle-class-now-worlds-largest-surpassing-america/ (http://tacticalinvestor.com/chinas-middle-class-now-worlds-largest-surpassing-america/)


Only 19% of Americans have over $5,000 in savings.

Over 62% of Americans do not even have $1000 in their savings account.

American Savings:
(http://goldseek.com/news/2016/62%25%20americans%20don%27t%20have%201000%20or%20more%20in%20savings_1001x656.jpg)

http://news.goldseek.com/GoldSeek/1468246860.php (http://news.goldseek.com/GoldSeek/1468246860.php)


This is the current state of America.  The politicians have really looked after the American worker.
Title: Re: Chinese Savings VS. American Savings
Post by: The True Adonis on July 12, 2016, 02:30:53 PM
The lack of savings is directly related to consumer spending.
Title: Re: Chinese Savings VS. American Savings
Post by: Palumboism on July 12, 2016, 05:32:51 PM
Don't forget the Debt Americans hold in addition to the lack of savings.

Credit Card Debt
Average household $15,762   
Total debt $733 billion

Mortgages   
Average household $168,614   
Total debt $8.25 trillion

Auto loans   

Average household $27,141   
Total debt $1.06 trillion

Student loans
   
Average household $48,172   
Total debt $1.23 trillion

Any type of debt $12.12 trillion


https://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/ (https://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/)

Title: Re: Chinese Savings VS. American Savings
Post by: Palumboism on July 12, 2016, 05:35:17 PM
The lack of savings is directly related to consumer spending.

If you have no savings and massive debt, you shouldn't be borrowing more to spend on things you don't need.  This is not going to end well.
Title: Re: Chinese Savings VS. American Savings
Post by: Coffeed on July 12, 2016, 05:37:50 PM
Personal finance education is completely absent in North America. It should surprise nobody that they have no savings.

Title: Re: Chinese Savings VS. American Savings
Post by: TuHolmes on July 12, 2016, 05:39:35 PM
If you have no savings and massive debt, you shouldn't be borrowing more to spend on things you don't need.  This is not going to end well.

Yet, far too many Americans do that.
Title: Re: Chinese Savings VS. American Savings
Post by: NickEdge779 on July 12, 2016, 05:41:16 PM
Personal finance education is completely absent in North America. It should surprise nobody that they have no savings.


Exactly, they'd rather teach stupid bullshit like gender studies at high school's these days than a personal finance. It's a shame.
Title: Re: Chinese Savings VS. American Savings
Post by: Mr Anabolic on July 12, 2016, 06:04:07 PM
And it gets worse and worse all the time.  Prepare.
Title: Re: Chinese Savings VS. American Savings
Post by: Irongrip400 on July 12, 2016, 06:12:04 PM
Personal finance education is completely absent in North America. It should surprise nobody that they have no savings.



Lol, it's called math. Money out can't exceed money in, or you end up with a negative. I'll agree though, that they should really drive this shit home. I've got six figures in retirement and I'm self employed. Granted it wouldn't do shot for me now as I am used to a certain lifestyle but in four years or so I'll be in the "wealth management" catagory and as long as this place holds together, I should be okay when I hit 50. Aside from a mortgage, which is a 15 year note at 2.87%, I have no personal debt. I pay my credit cards off monthly, and never carry a balance.
Title: Re: Chinese Savings VS. American Savings
Post by: APE907 on July 12, 2016, 06:26:32 PM
Too many Americans are consumed with the appearance of looking wealthy, even when the reality is that the majority are heavily leveraged with never ending revolving debt and little to no liquid cash. It's a horrible merry go round that many folks never have the discipline or smarts to get off of.
Title: Re: Chinese Savings VS. American Savings
Post by: Powerlift66 on July 13, 2016, 05:33:05 AM
Glad I've been a cheap (and planning) prick my whole life:

Credit Card Debt
Average household $15,762   
Me = zero

Mortgages   
Average household $168,614   
Me = zero (House paid off)

Auto loans   
Average household $27,141   
Me = zero (5 cars for family) (Used)

Student loans   
Average household $48,172   
Me = zero (2 kids in college paid for by saving / planning, student 401k'S since their birth)

Can you tell I don't like debt of any kind??
Title: Re: Chinese Savings VS. American Savings
Post by: _bruce_ on July 13, 2016, 05:40:33 AM
Too many Americans are consumed with the appearance of looking wealthy, even when the reality is that the majority are heavily leveraged with never ending revolving debt and little to no liquid cash. It's a horrible merry go round that many folks never have the discipline or smarts to get off of.
Title: Re: Chinese Savings VS. American Savings
Post by: BodyMachine on July 13, 2016, 06:11:24 AM
It's no surprise when our economy promotes and runs on credit. There's no money to be made in a capitalistic society with spending, which yields debt. Communist communities are a completely different beast, the regime doesn't give the same freedoms to own "whatever you wish. " America is damaged by it's greed and plays on the human weakness to want more
Title: Re: Chinese Savings VS. American Savings
Post by: FitnessFrenzy on July 13, 2016, 06:20:07 AM
interesting thread, OP.

It should be noted that the Chinese state has massive loans and losses to various enterprises and companies.

check this out:

http://www.economist.com/news/leaders/21698240-it-question-when-not-if-real-trouble-will-hit-china-coming-debt-bust
Title: Re: Chinese Savings VS. American Savings
Post by: Tha Grim Lifter on July 13, 2016, 06:25:50 AM
Although i'm not in America i'd be in the top 1%. Damm. I'm such a fucking tightass maybe I should spend some money.
Title: Re: Chinese Savings VS. American Savings
Post by: Tapeworm on July 13, 2016, 07:18:49 AM
It's a common accusation that people like shiny things and are easily swayed by advertising, which is true, but it's not as easy a fix as providing them with 'financial education.'  The other half of the coin is that people continually need new things because they have no idea how to maintain the shit that they've got.  

They don't know what to do when there's a problem other than go buy another one because they're useless bastards who never learned that part of owning something is understanding how to look after it.  [in b4 ok grandpa]  Along with this comes an inability on their part to assess quality to inform their decision on whether or not to buy something.  They buy it, do nothing to maintain it, and then gripe about engineered obsolescence when it 'needs replacing.'  Well you're the dumbass who bought it in the first place!  Twice!  They don't know what else to do and that's a problem.  I try to buy something once, rock solid, usually not for retail, and keep it in good condition.

Occasional panhandling but dude's awesome:
Title: Re: Chinese Savings VS. American Savings
Post by: FitnessFrenzy on July 13, 2016, 07:33:29 AM
It's no surprise when our economy promotes and runs on credit. There's no money to be made in a capitalistic society with spending, which yields debt. Communist communities are a completely different beast, the regime doesn't give the same freedoms to own "whatever you wish. " America is damaged by it's greed and plays on the human weakness to want more

the culture of materialism in perhaps even stronger in China than in America. I am not kidding.
Title: Re: Chinese Savings VS. American Savings
Post by: mazrim on July 13, 2016, 07:41:47 AM
That's crazy how bad people are with money.
Title: Re: Chinese Savings VS. American Savings
Post by: El Diablo Blanco on July 13, 2016, 07:53:25 AM
America is a consumer society and china is the supplier.  Not shocked.
Title: Re: Chinese Savings VS. American Savings
Post by: Wiggs on July 13, 2016, 08:49:56 AM
America is a consumer society and china is the supplier.  Not shocked.

x2
Title: Re: Chinese Savings VS. American Savings
Post by: Mr Anabolic on July 13, 2016, 08:58:52 AM
Glad I've been a cheap (and planning) prick my whole life:

Credit Card Debt
Average household $15,762   
Me = zero

Mortgages   
Average household $168,614   
Me = zero (House paid off)

Auto loans   
Average household $27,141   
Me = zero (5 cars for family) (Used)

Student loans   
Average household $48,172   
Me = zero (2 kids in college paid for by saving / planning, student 401k'S since their birth)

Can you tell I don't like debt of any kind??

Nice job! 

However, when the stock market gets clobbered (which is long overdue), that will have a serious draining effect on all 401k's.
Title: Re: Chinese Savings VS. American Savings
Post by: FitnessFrenzy on July 13, 2016, 09:06:01 AM
Nice job! 

However, when the stock market gets clobbered (which is long overdue), that will have a serious draining effect on all 401k's.

only if you sell your stocks. If you keep them, they will go up again.
Title: Re: Chinese Savings VS. American Savings
Post by: NelsonMuntz on July 13, 2016, 09:08:23 AM
Chinese also counterfeit everything including money, so their society is built on a house of cards as well.
Title: Re: Chinese Savings VS. American Savings
Post by: polychronopolous on July 13, 2016, 09:12:44 AM
By paying off the mortgage early, there is a decent chance you are leaving money on the table but can we really put a price on 'peace of mind'?
Title: Re: Chinese Savings VS. American Savings
Post by: Powerlift66 on July 13, 2016, 10:24:28 AM
Nice job! 

However, when the stock market gets clobbered (which is long overdue), that will have a serious draining effect on all 401k's.

That's OK, this is the last year for that 401K, used most of it for the oldest one's college. The younger one, I just have it saved.
401K's are long haul (my retirement ones) so i cant touch them for 15 more years anyways, and before retiring (if they are up and not crashed) you move them into a safer, less risk account.
(IRA or something)...
Title: Re: Chinese Savings VS. American Savings
Post by: The True Adonis on July 13, 2016, 01:16:32 PM
We have zero debt and no liabilities whatsoever.  No children either.  Sure makes things easy.
Title: Re: Chinese Savings VS. American Savings
Post by: TuHolmes on July 13, 2016, 01:19:02 PM
Chinese also counterfeit everything including money, so their society is built on a house of cards as well.

That's true. They over inflate the value of their currency by huge amounts.
Title: Re: Chinese Savings VS. American Savings
Post by: Howard on July 13, 2016, 02:14:22 PM
Glad I've been a cheap (and planning) prick my whole life:

Credit Card Debt
Average household $15,762   
Me = zero

Mortgages   
Average household $168,614   
Me = zero (House paid off)

Auto loans   
Average household $27,141   
Me = zero (5 cars for family) (Used)

Student loans   
Average household $48,172   
Me = zero (2 kids in college paid for by saving / planning, student 401k'S since their birth)

Can you tell I don't like debt of any kind??

I like your outline and have a similar view on debt.
BUT, I've always felt having kids results in some form of debt for 20+ years.
Imagine having that college savings going to YOUR retirement. Ouch!