Why don't Americans save?

Well I think we’ve seen a huge inflation boom the past few years. Now that we are in a somewhat deflationary period, you’d think prices would start going down, but I don’t see that. Some of it may be justified. For instance restaurants were absorbing a lot of the costs in rising commodity prices. Now that they have crashed, you aren’t seeing the price drop that we thought would happen because they are trying to make some of that money back. Of couse their employees will never see any a raise from those higher prices.

 

stop calling yourself a loser or it will become true....your life won't change for the better if you don't change your attitude...sandythebestdog, you gave up before even trying...

 

Sandy, I've been following a few of your posts.I have a suggestion. Learn the pizza business and open your own pizzeria.

"Learn more?" I suggest rudimentary accounting courses and keep two sets of books. This is the key to get ahead and Pizza joints rock because it is a cash business.

Diversify your life investments into three parts. Self employement (opportunity to write off everything), buy a piece of real estate and thirdly invest in the market.

Befriend an insurance agent, there are all sorts of vehicles to provide income years down the road. You are young and the products are cheap (time is on your side).

 

I think you know I was being sarcastic. I was just informing him of where I work before someones else jumps all over me ripping health insurance because I deliver pizza. Most other people on ET would classify me as a loser and I don’t really care what they think. I’m just like millions of other Americans trying to get ahead and finding it very difficult and can’t figure out why.

I never gave up before trying. My past posts explain plenty of what I’ve done. I challenge anybody here to tell me about a 24 year old that they know who has worked as hard as I have, who has saved and invested as much as I have before losing it all, who has played by the rules, not lived extravagantly and sacrificed so much today for the promise of tomorrow, who has toiled for thousands of hours just trying to find that one thing that will make it for them but has never found it. BTW I haven’t given up, I just want my health insurance to stop going up every year so I can have a chance at getting ahead, and for Chase to stop charging me 24% on a credit card that I’ve never missed a payment on in 6 years, so that I can try to pay down the balance.

 

Sandy, with all due respect, I think you're full of shit.

Why?

Because I'm 24. I went to school. I make a livable wage. I've had a Chase CC for 3 years, never missed a payment, and my interest rate is 8.99%. My health insurance rate hasn't gone up either.

BTW, I'm not that smart.

So, you're either lying or you're doing something wrong.

You make some valid points that I agree with. The gap between the rich and the poor is increasing. It's only going to get worse. If you don't do something about it now, you'll get left in the dust.

Ten, twenty, thirties years from now you'll still be bitching about it. You'll be kicking yourself for not doing something years ago.

It takes about five years before a small business turns a consistent profit. I know several contractors who can vouch for this. It's especially true in the food-service industry. Think of it like earning a degree.

If you're not prepared to stick with it, don't even bother.

 

Thanks for that. I’ll come up with recipes if you can co-sign the 250k loan!! No, seriously an oven by itself costs 40k. It’s no small task. It’s funny that you mentioned that. The past few days I’ve been thinking of a few recipes. Last night I tried chocolate popcorn. That didn’t turn out to great. Tonight I made funnel cakes, which turned out much better. I’ve been thinking about a bacon, egg and cheese breakfast pizza. That sounds yummy.

This would be an absolutely great time to start a restaurant. You could get a great deal on a lease or purchase. Driving down Rt. 355 where I live, I saw at least 2-3 empty buildings that would make great locations. The commercial real estate market hasn't collapsed yet, but I'm sure you can get some good deals. Build your business now when everybody else is contracting and you’ll take huge market share when the economy recovers. Best of all, you can have your pick of good people to work with now. People now are hungry for an opportunity if given a chance. The big 3 pizza chains have demoralized everybody. Their business is ripe for the taking.

I took accounting 101 a few years ago. I’m sure most things could be handled through Quickbooks. The key to running a seamless restaurant is a good point-of-sale system. You need to make it idiot proof and know how to get it working again very quickly in case it crashes in the middle of a Friday night rush. Proper inventory management is also crucial. Never run out of anything, you’ll regret it and it’s unfair to the customer. I am a licensed insurance agent, so I’m a little familiar with that. I’m not sure what areas you were talking about. Of course the key to having money is to have it make more money. I just haven’t figured out how yet.

This is a great story I heard the other day. Black Market Pizza, that is the coolest name ever. I hope those guys do well.

http://www.cnn.com/video/?JSONLINK=/video/us/2009/02/10/fodor.black.market.pizza.kcci

 

If I’m full of shit, why do your statements pretty much agree with everything I’ve been saying? I read some of your posts and you are very aware of the state of the economy. We pretty much agree on everything.

If you want, I can show you a copy of my CC statement from 5 years ago and now and show you the rate. I can also show you a copy of my credit report showing perfect payment history. Your rates probably haven’t gone up yet because you don’t owe them like I do. As soon as they know you’re in trouble they jack the rate. Don’t take my word for it, google this. I am not the only one. I can also show you my insurance premiums going from $160 to $272 in 6 years.

I am not lying and I am probably doing something wrong. If there’s one thing in life I’ve learned, it’s that to get ahead, you usually have to screw other people to get there. If you play by the rules and work hard and expect to get ahead, you’ll probably be dissapointed. I just haven’t figured out a way to screw anybody yet, nor do I have the conscience for that. I’m sure a lot of people have made it by doing what’s right and following the rules, and hopefully I can too. But it sure seems a whole lot easier for the bad people to get ahead.

I’d suggest you read this thread through and some of my other posts, if you haven’t already done so, and see all the things I’ve done to try to get ahead. No, I didn’t go the traditional route like you and go to college (except for 2 semesters), but I’ve tried many things instead. I’ve been trying for 6 years. I don’t have time to go into everything, but I am the one who is most aware of how much I’ve wanted it and seen nothing. I know the world is just getting worse and I am trying to do something about it. But we have to recognize the problem before we fix the situation, hence the occassional bitching. We don’t solve problems by ignoring them. Good luck with your career.

 

WTF???? I think YOU'RE full of shit!!! Your health insurance rate hasn't gone up?? Everybody I've talked to that has insurance has seen it go up over the last five years or so. Mine has gone from $9 a month five years ago to $44 a month now. I get it through my employer who is owned by Pepsico.

Come on man, your health insurance hasn't gone up? I'm calling bullshit. Who's your insurer?

 

I think Americans don't save partly for cultural reasons (conspicuous consumption and ostentatious displays of wealth used to be prized in our culture; maybe not so much anymore). A documentary I was watching the other day interviewed this guy who was making over $100,000 a month for several years at the height of the credit bubble. Now his house has been seized, all cars sold off etc. etc. and he's forced to rent an apartment. Can you imagine somebody making >$1 million a year and being so stupid and shortsighted as to fritter away every cent of it? That's the world we lived in.

I think the other big factor is that wages haven't kept up with inflation. It's just not possible to fulfill the average American's material wants (and 'wants' easily become 'needs') on the average American's salary. People make up the difference by borrowing and refuse to give up "necessities" like $100-a-month cable service. C'est la vie.

In your case, the problem is that pizza delivery is a zero-skills job. It doesn't require physical labor, specialized knowledge, or experience. If you want to earn more (in preparation for going out on your own) I strongly recommend learning a trade like plumbing, electrical work, or carpentry. These jobs require more physical labor, but also probably pay more than an entry-level desk job where you'll be competing against people with college degrees. It's also easy to go out on your own once you've got the skills down and a few years' experience.

Alternatively, have you considering being a policemen/sheriff's deputy, prison guard, fireman, something like that? I know a guy who made 60-70k a year as an independent mover. You won't get rich doing these jobs but you'll be able to save quite a bit by living cheaply.

 

Good point.

I believe television is the curse of a nation - especially America. TV will not only make you spend more, it will make you fat simply by sitting there for 3 hours, but also by the countless commercials for junk food. Never underestimate those guys on Madison avenue. They're smart enough to sell ice to eskimos and given enough commercial reps, you're gonna buy what they sell.

TV is bad enough for grown adults. But for kids, it's ten times worse. Smart people will get away from that idiot box and actually be constructive with their time. Really smart people won't even have a TV in their house.