Don't these high earners save any money?
Twenty-nine percent of those making $100,000 or more a year said they would have trouble paying the bills after more than a month of unemployment."
I have a nephew like that. He was having a ball selling vacation real estate in Ocean City, MD. Sold five million worth of property in six months, bought the Lincoln Navigator.
Now he's bagging groceries.
I want to reach out to the guy....
Where I live, you can send your kids to school for free.Someone already has...........
The Karpmans are now on food stamps and a tight budget that doesn't nearly cover their children's $30,000 private school tuition. But thanks to an anonymous donor, the Karpmans children's tuition has been covered through next year and they are deeply appreciative
According to this, many of them don't.
"...50% of Americans said they have only a one-month cushion -- roughly two paychecks -- or less before they would be unable to fully meet their financial obligations if they were to lose their jobs. More disturbing is that 28% said they could not make ends meet for longer than two weeks without their jobs.
And it's not just low-income earners who would find themselves financially challenged. Twenty-nine percent of those making $100,000 or more a year said they would have trouble paying the bills after more than a month of unemployment."
If this isn't a crash and burn scenario I've never seen one.
And I think we are in the process of breeding another generation of depression era savers. The longer this pain goes on people will get tired of being stressed out each month. Very slowly the bills and loans will get paid off and saving will start.
U.S. households socked away most of the extra income they got in January from annual cost-of-living raises, boosting the personal savings rate to a 14-year high, the Commerce Department said Monday.
Well, now that we've watched history unfold, if you're not wrong and the markets start roaring back fueled with zero to negative savings rates again and expanding credit, GET OUT!Hopefully it's already started and it will take hold. The mainstream has lived beyond their means for far too long, it's at the root of our current economic problems. My fear is that memories will fade and the mainstream will go back to their (way) over-leveraged tendencies...but I hope I am completely wrong.
Once upon a time you dressed so fine
You threw the bums a dime in your prime, didn't you ?
People'd call, say, "Beware doll, you're bound to fall"
You thought they were all kiddin' you
You used to laugh about
Everybody that was hangin' out
Now you don't talk so loud
Now you don't seem so proud
About having to be scrounging for your next meal.
How does it feel
How does it feel
To be without a home
Like a complete unknown
Like a rolling stone ?
Your daughter's gone to the finest school all right, Miss Lonely
But you know you only used to get juiced in it
And nobody has ever taught you how to live on the street
And now you find out you're gonna have to get used to it
You said you'd never compromise
With the mystery tramp, but know you realize
He's not selling any alibis
As you stare into the vacuum of his eyes
And say do you want to make a deal?
How does it feel
How does it feel
To be on your own
With no direction home
Like a complete unknown
Like a rolling stone ?
I had a senior position at a global mega corp. I was surprised - and unprepared - for the pressure to spend. Intense peer pressure from all around - including HR. House, cars, toys, kids colleges - indescribable. And unbelievable.I think that many of us would have had different priorities if making $750K/year. Maybe we would give a higher priority to having a substantial emergency fund than to start-up costs for a new business. Instead, the guy took a huge chance on a new business and it didn't pan out.
My experience showed this to be a sign that the person was not "part of the team". The corporate world looks for people that depend on continued employment and need every penny of the variable income (aka bonus). If not, they really can't be counted on. This is only more so at senior levels.Many who make that kind of money also make it a priority to prepare for the worst, just in case - - paying off the house and loans, setting up trust funds, and such. Frankly, some would think it incredibly stupid not to do so.
I can't even imagine making $750,000 per year and being in debt.