Conversation About Savings

[ExFlyBoy5]

My DW relayed a conversation she overheard at w*rk this morning. The conversation was taking place between folks (four of them) that make a minimum of 60K a year each and are in their early to mid-40's. 3 of the 4 have no children, and one of them has one child. Long story short, a client disclosed to them that she had spent about $19,000 on a kidney transplant on an elderly cat and the conversation morphed into "Wow...I can't believe someone has that much savings!" and "I just don't have the money to save and don't think about it". Then there was the rambling as to *why* they hadn't started saving. My DW said she took the opportunity to leave and walk around a bit before she got dragged into the conversation.

I have often heard that a lot of folks don't really have that much $ in savings. I always thought that most of that was "click bait" type articles and that most people saved *something* at least. But after hearing that, I am beginning to wonder if these articles are on to something? Even worse with the folks that were in that conversation, the employer has a very generous 401K match that I am guessing none of them are taking advantage of.

I have no real point here...just thought I would share.

 

[OldShooter]

Yeah. I don't know why this stuff is so amazing but it always is.

About 25 years ago I bought my wife a nice car; Merkur Scorpio super-coupe that Ford imported for a couple of years. She was in a similar circle at work and talking about the fact that I had just bought her a car. Someone asked "OK, but who is going to make the payments?" They were flabbergasted when she said "There are no payments. He paid cash."

 

[LakeRat1]

I am 56, my DW is 64 we began saving through 401ks back 35 years. We were able to retire going on 5 years ....... Our kids were raised as I was, you have to work for what you want. All three kids have been working since they were 15, One drives trains (engineer), one is a PRN, the other has a good job as a project manager....... All three contribute to their 401ks ....... Save Save Save ..... Retire early

 

[Walt34]

Yeah. I don't know why this stuff is so amazing but it always is.

A different way of thinking I suppose. I have a bunch of relatives on both sides who can't hang on to a nickel. A nephew & his wife were sorority houseparents for ~10 years and had virtually no housing or even food expenses. They should have been able to write a check for a house when that gig was up but they hadn't saved anything.

 

[joeea]

Long story short, a client disclosed to them that she had spent about $19,000 on a kidney transplant on an elderly cat

Much as I like pets, I can't see spending that on a few years of extra cat life.

I have often heard that a lot of folks don't really have that much $ in savings. I always thought that most of that was "click bait" type articles and that most people saved *something* at least. But after hearing that, I am beginning to wonder if these articles are on to something?

Most if it is indeed clickbait.
Still, there are many folks without any real retirement savings.

 

[Freedom56]

In Southern California, I'm surrounded by them. Many make great salaries. This is an example how they do it:

It's surprisingly easy to end up living paycheck to paycheck when you earn $500,000 a year - Business Insider

 

[jazz4cash]

I wonder if the pet owner really used savings. Actually, I'd be surprised if someone that would spend 19k for this would have any substantial savings unless they were truly affluent. I've never had savings like that in my entire life because it was all in my 401k.

 

[Spock]

Long ago a coworker who had been vocal about having difficulty making ends meet suddenly showed up in a brand new upper end vehicle. When asked what he paid for it his reply was "I didn't pay anything for it. I put it on credit".

I was "involuntarily retired" in 2016... but since we lived on about 26% of my take home pay its looking like its going to be OK.

 

[MRG]

When I was a manager our VP insisted we meet with each employee and talk about the importance of saving for retirement.

Wow did I learn some stuff.

Of course there's no shortage of vets that will gladly take your money and make it theirs. I recently explained that no, my almost 12 year old dog isn't going to have cataract surgery. Given his eyes are only 4" off the ground and sees people and dogs at a distance I don't think it's a problem.

Only 6 months prior the same vet said the dog had Nuclear sclerosis, not cataracts.

 

[foxfirev5]

Much as I like pets, I can't see spending that on a few years of extra cat life.

Talk about a 19k elephant in the room! To me that is a form of malpractice. Tugging on the heartstrings of a loving pet owner.

Now back to the subject of saving...

 

[OldShooter]

Long ago a coworker who had been vocal about having difficulty making ends meet suddenly showed up in a brand new upper end vehicle. When asked what he paid for it his reply was "I didn't pay anything for it. I put it on credit". ...

Always amazing. I had a friend who owned a bar that failed, then went to work for a railroad in some blue collar position.

He bought a new Toyota SUV and commented "I didn't think I could afford it but the salesman said I could."

 

[Walt34]

He bought a new Toyota SUV and commented "I didn't think I could afford it but the salesman said I could."

A SIL is like that. When her old car needed brake pads and tires she traded it in and bought a new car. "The payments are only $15/month more, and that's cheaper than new tires." Talk about "Kentucky math".

 

[copyright1997reloaded]

None of this is surprising. We live in a society of spend spend spend, and me me me. "I deserve it." "Why can't I have it if someone else has it." "It's not fair that I can't have it", and so on. It isn't just low income folks. I saw the same thing with people making over 200K.

 

[candrew]

Wants vs. Needs

 

[NYEXPAT]

Here in Lima Peru, nobody talks about savings,retirement or seem to be interested in material goods. They all seem to be happy with a two dollar lunch and dancing and a few beer's at the end of the day. When I was young, I had the expensive cars,clothes,houses and could not piss the money away fast enough. Since I met my young wife 15 years ago, I have learned to live my life everyday, enjoy my kids, where I am fortunate to live, my health. I give money it's due but rarely think about it.

 

[ExFlyBoy5]

Yeah, the cat thing was a whole 'nother subject.

We have spent a substantial amount of cash on some elderly pets, but no way I would fess up over 10K for a cat that is over 15 years old.

 

[REWahoo]

Yeah, the cat thing was a whole 'nother subject.

We have spent a substantial amount of cash on some elderly pets, but no way I would fess up over 10K for a cat that is over 15 years old.

Made me think of this post from long ago, complaining about delaying retirement due to high expenses:

...spent $1k+ today to have one of our cats teeth cleaned, which is a recurring expense for all four cats and the dog, despite our brushing their teeth twice a day.

 

[GalaxyBoy]

I paid cash for a new vehicle last January before I retired. One of my coworkers asked me if I got a good interest rate. I told him, "Why yes! Zero percent!" I wanted to avoid the inevitable look of disbelief that anyone could actually pay cash for a vehicle, even though he knew my old one was over ten years old. Then again, it wouldn't have occurred to him that by holding onto a vehicle that long you can easily save enough to buy the next one if you just don't spend what would have been the car payment.

 

[Rustic23]

I find the statistics on savings interesting. Many quotes, but seldom what makes up this savings rate or amount. Example, we had a 401K, which is not included in some 'savings' stats. Also money contributed to retirement plans are not included. It has been several years since I looked up the 'national savings rate' but it did not seem to include anything other than money you put in the bank after you get your pay check.

Having said that, I agree, people don't save enough, and we will all pay the price in the long run. When the politicians go after money they will knock on the door of people like the ones on here. Just like the bank robber that said 'I rob banks because that's where the money is'

 

[mamadogmamacat]

poor cat........and poor donor cat..........its not like they can consent to such a thing, although it is my understanding that the owner has to agree to adopt the donor cat.....as much as i love my cats, this not something i would do for precisely these reasons, additional suffering for both cats that they cannot understand..this includes the anti rejection drugs for life..regarding financial ignorance and the "grab the cupcake rather than wait awhile to get two cupcakes" mentality, among my many acquaintances and even some friends and family, it appears to be rampant

 

[foxfirev5]

poor cat........and poor donor cat..........its not like they can consent to such a thing, although it is my understanding that the owner has to agree to adopt the donor cat.....as much as i love my cats, this not something i would do for precisely these reasons, additional suffering for both cats that they cannot understand..this includes the anti rejection drugs for life..regarding financial ignorance and the "grab the cupcake rather than wait awhile to get two cupcakes" mentality, among my many acquaintances and even some friends and family, it appears to be rampant

Wow I had no idea how involved the process would be. Now I'm even more convinced that the veterinary field is off the rails. I am sure that I could save a fair number people with this amount of cash. And this may be the incentive to do so.

 

[Chuckanut]

I have no real point here...just thought I would share.

Actually, I think you made a good point here.

People often don't know what they don't know. And these people literally do not know how to manage money for the future. Worse, they don't know they don't know.

I know of people who think that good money management is having a credit score above about 740. It doesn't matter that they owe three years wages on their car, vacations, furniture, new skies, etc. etc. Their credit score lets them borrow more so they must be doing it right.

 

[Souschef]

We live in a +55 mobile home park. In August we bought 2 new cars. Fortunately everyone we know is MYOB, and never heard a thing a bout them.
P.S. DW paid cash for hers and I put mine on my CC to get cash back, then paid it off.
DW said this was the first car in her life she did not have payments on.

 

[scrabbler1]

A SIL is like that. When her old car needed brake pads and tires she traded it in and bought a new car. "The payments are only $15/month more, and that's cheaper than new tires." Talk about "Kentucky math".

I remember an old Abbott and Costello bit like this but they used 7 x 13 = 28.

 

[pb4uski]

Yeah. I don't know why this stuff is so amazing but it always is.

About 25 years ago I bought my wife a nice car; Merkur Scorpio super-coupe that Ford imported for a couple of years. She was in a similar circle at work and talking about the fact that I had just bought her a car. Someone asked "OK, but who is going to make the payments?" They were flabbergasted when she said "There are no payments. He paid cash."

Similar story here. I remember a few years ago I was buying a car and planned to pay cash , it totally stymied the office staff how to process the transaction. I was somewhat shocked.