Low-income families spend 40% of their money on luxuries

Discussion in 'Economics and Finance' started by Diarrhetrius Brown, Jun 29, 2017.

  1. Diarrhetrius Brown Doctor of Niggerology

    Member Since:
    May 26, 2013
    Message Count:
    1,776
    Location:
    Savannah, Georgia
    Reputation:
    58,450,961
    Ratings Received:
    +3,552 / 14 / -11
    Seems to me Americans of all incomes need to get a handle on their emotions.

    When you hear people whine and complain about not getting enough money it isn't money they need to survive on but money they need for luxuries that they really don't need.

    Avoid the debt.

    A quick story about a newly married couple that I knew several years ago when they got married he was 26 and she was 25. When they got married both of them were working and while they weren't making the big bucks they were making a decent wage. I would have to estimate the take-home income of both was probably around $70,000 which wasn't horrible 11 years ago. Not great but not horrible.

    They decided their first goal was to buy a house so what they did was live on her salary while banking 100% of his salary. I would guess her salary to be $30,000 while his was a little higher at $40,000, they saved 100% of his salary.

    They did it by living sort of dumpy which is really an understatement. They rented a mobile home, both of them drove older cars which weren't chunky but they were 6 to 8 years old but they were paid for. They did without a lot of things we all take for granted and one of them was cable television, they didn't have it.

    The ate healthy, they always, or nearly always, ate at home going out to eat at an inexpensive restaurant maybe once a month and catch a movie once a month. That was their date night.

    Not poverty but certainly not the High Life.

    But the payoff came before he was 30 years old when he was able to go out and pay cash for a really nice 3 bedroom 2 bath home on Whitemarsh Island which is east of Savannah. Unless you have lots of dollars nobody wants to live in Savannah but Whitemarsh Island is pretty good. After the home purchase they started having children and she was a stay-at-home mom. Not a lot of stay-at-home mom today.

    Imagine starting out life, not yet 30, you don't have a mortgage nor do you pay rent for the rest of your life.

    It's called being bulletproof to the Jew.

    Low-income families spend 40% of their money on luxuries
    By Leslie Albrecht
    Published: June 29, 2017 12:12 p.m. ET

    Emotions can drive spending on necessities

    It turns out that all Americans, regardless of income, spend a large percentage of their income on luxuries.

    People who make the most money spend the biggest chunk of their incomes on luxury goods, but even the poorest households spend a significant amount for luxuries, according to an analysis released this week by Deutsche Bank Research.

    The wealthiest families (the top fifth of earners) spend around 65% of their incomes on luxury goods and 35% on necessities, according to the study, which looked at spending habits between 1984 and 2014. Middle-income households weren’t far behind: They spend 50% on luxuries and 50% on necessities.

    Even the lowest income families (the bottom fifth of earners) spend 40% on luxuries and 60% on necessities, according to the study’s author, Torsten Slok, chief international economist for Deutsche Bank Securities.

    The median household income in the U.S. recently rose to $59,361.

    The bottom two fifths of earners made $47,300 or less in 2014, according the Tax Policy Center. The middle two fifths made between $47,300 and $134,300 and the top fifth made more than $134,300.

    The Deutsche Bank Research report defined luxuries as “goods or services consumed in greater proportions as a person’s income increases” and necessities as those goods or services that make up a smaller proportion of spending as a person’s income increases.

    Read more: The less some Americans make, the more they spend on prom night

    While we tend to think of spending on luxuries as an indulgence driven by emotions, recent research suggests consumers’ feelings play a key role in spending on necessities as well. “Consumers who experience a loss of control are more likely to buy products that are more functional in nature, such as screwdrivers and dish detergent, because these are typically associated with problem solving, which may enhance people’s sense of control,” the authors of an April 2017 study in the Journal of Consumer Research wrote.

    Still, the richer you are, the more likely you are to overspend on unnecessary purchases with your credit card, a January 2017 NerdWallet survey found. Nearly half of Americans (49%) say their emotions have caused them to spend more than they can afford, it concluded.

    Most Americans (86%) say it’s OK to go into credit card debt to pay for necessities such as emergency purchases, medical expenses and expenses related to unemployment. But about even more people (87%) said they would be embarrassed to go into debt to pay for unnecessary purchases they can’t afford, non-emergency travel expenses or cash advances, NerdWallet found.

    Women are more likely than men to overspend because of stress (35% vs. 24%) while men say excitement leads them to spend too much, the NerdWallet survey found. Households at the bottom of the income ladder (less than $50,0000) are more likely to overspend because of stress than households who make $100,000 or more (34% vs. 24%)
    Latest Given Reputation Points:
    Ozzy Bon Halen: 134,752 Points Sep 18, 2017
    • Agree Agree x 2
    • Informative Informative x 1
    • List
  2. angry asia man hatamoto 旗本

    Member Since:
    May 12, 2014
    Message Count:
    265
    Reputation:
    15,289,846
    Ratings Received:
    +367 / 3 / -5
    indicative that 40% of americans are welfare fats who have subsidized incomes from uncle sam? i think its likely.
  3. The Bobster Forum Veteran

    Member Since:
    May 8, 2015
    Message Count:
    2,529
    Reputation:
    36,017,535
    Ratings Received:
    +3,324 / 2 / -17
    Bullshit. I spend half my income on taxes of every kind.
    Latest Given Reputation Points:
    MadScienceType: 46,862 Points (No shit!) Sep 18, 2017
  4. WFHermans Forum Veteran

    Member Since:
    May 12, 2010
    Message Count:
    651
    Reputation:
    30,700,233
    Ratings Received:
    +1,023 / 9 / -0
    Circular fallacy.
  5. Neil Pye Forum Veteran

    Member Since:
    Feb 28, 2015
    Message Count:
    692
    Reputation:
    33,347,245
    Ratings Received:
    +1,475 / 1 / -2
    Is a cat considered a luxury?
  6. The Bobster Forum Veteran

    Member Since:
    May 8, 2015
    Message Count:
    2,529
    Reputation:
    36,017,535
    Ratings Received:
    +3,324 / 2 / -17
    Not if you have mice.
  7. WFHermans Forum Veteran

    Member Since:
    May 12, 2010
    Message Count:
    651
    Reputation:
    30,700,233
    Ratings Received:
    +1,023 / 9 / -0
    If you have mice, a cat won't cost you a dime.
  8. Giada MAGA

    Member Since:
    Aug 18, 2014
    Message Count:
    5,304
    Reputation:
    131,229,639
    Ratings Received:
    +5,679 / 114 / -38
    I dislike any kind of shopping, so I don't fall into "stress spending".

    I've always been materialistically frugal, I suppose my "overspend stress" could be related to travel expenses.
  9. Ozzy Bon Halen LOLworthy Threadmonkey & Critic Of Texas Dentistry

    Member Since:
    Sep 29, 2011
    Message Count:
    8,770
    Location:
    In a van down by the river
    Reputation:
    158,133,771
    Ratings Received:
    +10,101 / 16 / -26
    A lot of these "low income" types are really just niggers & wiggers. They might work part-time for minimum wage at fast food, but they still have their $200 bakkaball shoes, sail foams, tacky rims on their beat up hoopty cars, etc etc etc.
    Latest Given Reputation Points:
    Prima Morte: 47,621 Points (Some of those "rims" are actually leased. LOL) Sep 18, 2017
  10. The Bobster Forum Veteran

    Member Since:
    May 8, 2015
    Message Count:
    2,529
    Reputation:
    36,017,535
    Ratings Received:
    +3,324 / 2 / -17
    http://nypost.com/2017/09/18/man-try...ife-on-seller/

    Boong trying to buy Yeezy sneakers pulls knife on seller
    By News.com.au
    September 18, 2017 | 8:48pm

    A designer sneaker deal went wrong when a buyer pulled a knife on a man trying to sell him a pair of $1100 Yeezy shoes in a Sydney park.

    The 22-year-old seller arranged online to meet a man who wanted to buy a pair of the Kanye West-designed Adidas hi-tops in Johnson Park in Dulwich Hill on Monday at 7:30 pm.

    It is alleged the buyer tried on the 750 triple black SD sneakers and then pulled a knife out of his backpack, forcing the seller to flee the park without the shoes.

    The theft was reported to police from Marrickville Local Area Command and an investigation is now underway.

    Police believe the thief is the same man who earlier in the evening stole a $1000 jacket in a similar incident at Arlington light rail station, which adjoins the park. The man had organized online to meet the jacket seller and then ran off with the item at around 6:20 pm.

    The man has been described as Aboriginal/Torres Strait Islander in appearance, about 5’5″ with a medium build and aged about 16. At the time of the robbery, he was wearing a black hooded jumper and black track pants.
  11. Georg Schoenerer Der Judenkenner

    Member Since:
    Feb 13, 2015
    Message Count:
    1,005
    Location:
    Oy Vey Up North
    Reputation:
    46,127,599
    Ratings Received:
    +1,831 / 3 / -43

    I'm going with Torres Straight Islander on this one; you just know these guys are the type to want elebbin-hunna-dolla yeezies:

    [IMG]
  12. Giada MAGA

    Member Since:
    Aug 18, 2014
    Message Count:
    5,304
    Reputation:
    131,229,639
    Ratings Received:
    +5,679 / 114 / -38
    What do TBB members consider a luxury?
    Men vs. Women.

    I had a neighbor who had so many "toys" (ATV's, tools, etc) Idk how he afforded it. Another neighbor even brought it up to me.
    I found a list of "necessities". I've gone without a lot on the list and didn't miss it.

    http://www.moneycrashers.com/difference-between-needs-wants-luxuries\
    ItemPercentage of Americans calling it a necessity
    2009 2006 1996
    Car 88% 91% 93%
    Landline Phone 68% not asked not asked
    Clothes Washer not asked 90% 86%
    Clothes Dryer 66% 83% 62%
    Home Air Conditioning 54% 70% 51%
    TV Set 52% 64% 59%
    Home Computer 50% 51% 26%
    Cell Phone 49% 49% not asked
    Microwave 47% 68% 32%
    High-Speed Internet 31% 29% not asked
    Cable or Satellite TV 23% 33% 17%
    Dishwasher 21% 35% 23%
    Flat-Screen TV 8% 5% not asked
    iPod 4% 3% not asked
  13. Georg Schoenerer Der Judenkenner

    Member Since:
    Feb 13, 2015
    Message Count:
    1,005
    Location:
    Oy Vey Up North
    Reputation:
    46,127,599
    Ratings Received:
    +1,831 / 3 / -43
    Of that list, the only necessities I have are a car, washer/dryer, cell phone and PC/internet.

    I have a couple of list items I consider non-necessities: a box-like cable TV in the basement for the odd hockey game, a seldom used microwave, and an ancient iPod full of roadtrip music.

    Wow. Pretty much the entire list.

    My luxuries are pets ($3k in vet bills this year), sporting tools (guns, knives, bikes, kayaks, skis, snowshoes, backpack gear--actually this shit is more of a necessity, I think), vacations (I try for 16 weeks per year), cultural events (getting faced watching local bands) and real food/good liquor (quality=$$$).

    One luxury I'm still working towards is a waterfront acreage somewhere with abysmal Feng Shui so I never have to look at another chinaman again.
    Latest Given Reputation Points:
    rasputin: 82,001 Points (no chinks, long vacations) Sep 19, 2017
  14. Giada MAGA

    Member Since:
    Aug 18, 2014
    Message Count:
    5,304
    Reputation:
    131,229,639
    Ratings Received:
    +5,679 / 114 / -38
    My luxuries would be my pets, vacations, cultural events, and real food/liquor, as well.
    IMO, I could go without the majority of the necessities, except washing machine and A/C.

Share This Page