Author Topic: Chinese Savings VS. American Savings (Read 3422 times)

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/

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://news.goldseek.com/GoldSeek/1468246860.php

This is the current state of America. The politicians have really looked after the American worker.

The True Adonis · « **Reply #1 on:** July 12, 2016, 02:30:53 PM »

The lack of savings is directly related to consumer spending.

Palumboism · « **Reply #2 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/

Palumboism · « **Reply #3 on:** July 12, 2016, 05:35:17 PM »

Quote from: The True Adonis on July 12, 2016, 02:30:53 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.

Coffeed · « **Reply #4 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.

TuHolmes · « **Reply #5 on:** July 12, 2016, 05:39:35 PM »

Quote from: Palumboism on July 12, 2016, 05:35:17 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.

NickEdge779 · « **Reply #6 on:** July 12, 2016, 05:41:16 PM »

Quote from: 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.

Exactly, they'd rather teach stupid bullshit like gender studies at high school's these days than a personal finance. It's a shame.

Mr Anabolic · « **Reply #7 on:** July 12, 2016, 06:04:07 PM »

And it gets worse and worse all the time. Prepare.

Irongrip400 · « **Reply #8 on:** July 12, 2016, 06:12:04 PM »

Quote from: 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.

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.

APE907 · « **Reply #9 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.

Powerlift66 · « **Reply #10 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??

_bruce_ · « **Reply #11 on:** July 13, 2016, 05:40:33 AM »

Quote from: 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.

BodyMachine · « **Reply #12 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

FitnessFrenzy · « **Reply #13 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

Tha Grim Lifter · « **Reply #14 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.

Tapeworm · « **Reply #15 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:

FitnessFrenzy · « **Reply #16 on:** July 13, 2016, 07:33:29 AM »

Quote from: 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

the culture of materialism in perhaps even stronger in China than in America. I am not kidding.

mazrim · « **Reply #17 on:** July 13, 2016, 07:41:47 AM »

That's crazy how bad people are with money.

El Diablo Blanco · « **Reply #18 on:** July 13, 2016, 07:53:25 AM »

America is a consumer society and china is the supplier. Not shocked.

Wiggs · « **Reply #19 on:** July 13, 2016, 08:49:56 AM »

Quote from: El Diablo Blanco on July 13, 2016, 07:53:25 AM

America is a consumer society and china is the supplier. Not shocked.

x2

Mr Anabolic · « **Reply #20 on:** July 13, 2016, 08:58:52 AM »

Quote from: 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??

Nice job!

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

FitnessFrenzy · « **Reply #21 on:** July 13, 2016, 09:06:01 AM »

Quote from: Mr Anabolic on July 13, 2016, 08:58:52 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.

NelsonMuntz · « **Reply #22 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.

polychronopolous · « **Reply #23 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'?

Powerlift66 · « **Reply #24 on:** July 13, 2016, 10:24:28 AM »

Quote from: Mr Anabolic on July 13, 2016, 08:58:52 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)...