Some people like to save and invest instead of spending every single cent they have.
We'd be a much more stable society if the majority of the population wasn't one paycheck away from being financially ruined.
37% of Americans don't have enough savings to cover a $400 emergency[0]. That percentage goes up as the amount goes up and a $400 emergency is easy to hit - medical bill, moving expense, car repair, etc. It becomes 68% at $1,000[1].
Saving money is basically buying into the baning industry’s narrative of a fat bank account, or of borrowing money in order to pay it off for 30 years.
Now investing is another story! Buy durable things with your cash that hold value over time!
Right, because people don't use credit cards for the additional protection, points or miles. It's because they are all borrowing money they don't have.
And billionares who borrow money because it's tax efficient must all be secretly broke too. /s
> Right, because people don't use credit cards for the additional protection, points or miles.
I actually don't know, because I'm not American. Over here just having a credit card draws questions about one's financial stability and responsibility.
At the end of the day it's really not your money you're spending like that. I mean - it's in the name even. You'll have to pay it back eventually.
> At the end of the day it's really not your money you're spending like that. I mean - it's in the name even. You'll have to pay it back eventually.
Eventually in this case is in less than 50 days. In the 15 or so years that I've been using credit cards, I have never once failed to pay off the bill in full before the due date. And the miles and points I've accrued have saved me significant amount of money.
> Over here just having a credit card draws questions about one's financial stability and responsibility.
I am really curious to know where in the world that is. Even if that is the general perception, it is unlikely to be actually true. Even in Germany, the rich use credit cards at a higher rate than the poor. That is a pattern you'll see replicated the world over. Getting approved for a premium credit card requires one to have a demonstably good income and credit score. So, having such a card is an indicator of strong financial stability and responsibility.
> So, having such a card is an indicator of strong financial stability and responsibility.
Yeah, such a card, not any card. Over here the most popular type of debt is one taken to purchase consumer goods like appliances and electronics in installments, mortgages are second.
Upper-middle class people and higher just buy things cash. There's no benefit in stretching this out if you can afford not to and any, even accidental, delay might hurt one's credit score - not worth it.
Investments are not very liquid on the time scale of less than a day. It's very often not about having to borrow money, it's about being able to leave less money sitting idle in your bank account.
Saving and investing are not realistic options for you if you're living paycheck to paycheck. That's why it's called that, because you have no money left over after paying for your necessities. Sometimes you don't even get to cover all your bills and you start racking up debt or are forced to be clever with frugality (read: giving up recurring payments like healthcare).
Now investing is another story! Buy durable things with your cash that hold value over time!