2006 personal savings drops to 74-yr. low

[sweeps]

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.

2006 personal savings drop to 74-yr. low

[scfr]

Re: 2006 personal savings drops to 74-yr. low

So interesting ... and so very scary.

[JanH]

Re: 2006 personal savings drops to 74-yr. low

I'm wondering if some of this is because of all the natural disasters in the last year or two. People have had to spend money to get their homes and businesses back up and running. Some of it is covered by insurance, but many places have chosen to upgrade things a bit also and I'm wondering if they are investing more in their businesses at this time. I'm hoping that it is a temporary blip. It seems to be paying off here because this area is starting to really grow again since hurricane rita. Although there are many places that still haven't recovered.

[Ima saver]

Re: 2006 personal savings drops to 74-yr. low

I read that this morning and thought I would even mention it in my blog. It is very sad.

[creditcardfree]

Re: 2006 personal savings drops to 74-yr. low

It is very sad.

I agree. And it is really time people wake up. Maybe they need a game show based on the $20 Challenge. Whoever can save the most money over a years time, gets a large cash prize!! I'd play. Everyone would win because they would have saved more than they would have with out the shows incentive.

[scfr]

Re: 2006 personal savings drops to 74-yr. low

I agree. And it is really time people wake up. Maybe they need a game show based on the $20 Challenge. Whoever can save the most money over a years time, gets a large cash prize!! I'd play. Everyone would win because they would have saved more than they would have with out the shows incentive.

I think that's a great idea! I also think that crazy show "What Not To Wear" where they go out and blow $5,000 on clothes in one shot should be replaced with "How to Clothe a Family of 4 for $500 a Year" ... But I guess it would have to be on PBS because how would you get companies to pay for advertising on a show like that?

[sweeps]

Re: 2006 personal savings drops to 74-yr. low

Maybe they need a game show based on the $20 Challenge. Whoever can save the most money over a years time, gets a large cash prize!!

Hehe. The ratings on that game show would be awful. Watching people eat Ramen noodles and shiver in their 55-degree houses would get old pretty fast.

[creditcardfree]

Re: 2006 personal savings drops to 74-yr. low

Hehe. The ratings on that game show would be awful. Watching people eat Ramen noodles and shiver in their 55-degree houses would get old pretty fast.

I agree...maybe it needs to be a radio call in show with how people saved money and how much they have saved to date. It sure seems there must be a market there to get people inspired.

[tinapbeana]

Re: 2006 personal savings drops to 74-yr. low

Hehe. The ratings on that game show would be awful. Watching people eat Ramen noodles and shiver in their 55-degree houses would get old pretty fast.

nah, just make it like survivor (thinking there was a thread on just this very thing). have it be 1 team against another and have competitions for reward. for instance, who can get the most groceries for under $25 and the reward is steak for the team to eat at the next meal...

[DebbieL]

Re: 2006 personal savings drops to 74-yr. low

I actually love that show "What Not to Wear" and would have absolutely no problem blowing SOMEONE ELSE'S $5,000 on a new wardrobe that really suits me! Actually, I wish someone would nominate me (but unfortunately I don't dress anywhere nearly bad enough compared to what I've seen on there, lol).

On a serious note, I also find the savings rate being in the negative numbers pretty scary. I'm in Canada, but I'm sure the statistic is pretty close to our numbers as well.

[disneysteve]

Re: 2006 personal savings drops to 74-yr. low

I read these articles and hear these stats over and over again and I simply can't comprehend how this is happening. Every major economic indicator shows that the country is doing great: unemployment is down, inflation is under control, the stock market is setting record highs, interest rates are up which helps curb borrowing and reward saving. And still, we learn that people continue to spend more than they earn. How is that possible? What the heck are all these people thinking?

Personally, our financial net worth was up 48% last year so clearly we aren't among those contributing to the negative savings rate. I just don't get it. :

[sweeps]

Re: 2006 personal savings drops to 74-yr. low

Maybe people are paralyzed by all the choices that Poundwise offers for MMA accounts. So out of frustration they spend their money instead.

[vsjhoc]

Re: 2006 personal savings drops to 74-yr. low

Personally, our financial net worth was up 48% last year so clearly we aren't among those contributing to the negative savings rate. I just don't get it. :

Steve - You pulled the average UP. Without your household, the savings rate would have been even more negative.

[Ima saver]

Re: 2006 personal savings drops to 74-yr. low

I pulled the savings rate up also. Not as big a percent as Steve did, but I still managed to save quite a bit in 2006!

[Bookie]

Re: 2006 personal savings drops to 74-yr. low

Here's an article on the way the government defines savings that I found interesting. It might dispel some of the gloom.

See this article.