How much do average people have saved in their bank accounts?

Discussion in 'Off Topic' started by chiwawa626, Jun 29, 2002.

  1. chiwawa626

    chiwawa626 Lifer

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    How much do average people have saved in their bank accounts? Just wondering what the average adult has in their bank account, someone whos from 37-50 years old who is pretty much middle class? I hear ur supposed to have enough to cover 6 months of unemployment...
     
  2. Scipionix

    Scipionix Golden Member

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    It is recommended that people have six months of relatively liquid assets for emergencies, not necessarily in bank accounts. But most people don't, and I can guarantee you that the number of people with $25,000 to $30,000 in checking is very small. I bet that the average checking balance is more like 2 to 4 weeks' worth of wages.
     
  3. xirtam

    xirtam Diamond Member

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    Yeah... if that. Some people owe money from paycheck to paycheck.
     
  4. IGBT

    IGBT Lifer

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    Nearly impossible for most middle class to save these days unless they have a 401/457 or some form of forced savings. Most couples I know work 2 jobs 6-7 days a week to scratch out a middle class life and live a modest life style. The US is becoming an economic slaughter house for working class people. The economic bar just keeps escalating leaving people with progressively less disposable/saved income.
     
  5. DCFife

    DCFife Senior member

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    I have found myself wondering about this on occassion too. My wife and I are both in the Army, so we certainly don't make tons of money. However, not only do we have about 200% more materialistic crap (you know, that stuff that you don't really need) than our friends and coworkers, but we also have mad cash compared to them. I really don't get it. I have come to the conclusion that people don't have much money not because they don't make enough money, but rather because they don't know how to spend (and save) the money they make.

    Dave
     
  6. bugsysiegel

    bugsysiegel Golden Member

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    I know I make a decent living, not great, but definately middle class level, yet I can't seem to save a dime. Seems like the bills always equal exactly what I make. :(
     
  7. psualum

    psualum Member

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    I never believed in having savings to cover 6 months of living... but I got laid off a little over a year ago and it scared the s**t out of me. I worried when I was gonna get a job and where I was going to get income from. Unemployment benefits are NOT enough to live on. So NOW ... no matter how tough it is... I try to have at least enough cash to cover 2-3 months worth of living costs because you never know whats gonna happen. I think its a little more important for homeowners b/c you want to at LEAST be able to pay your mortgage.
     
  8. TheOmegaCode

    TheOmegaCode Platinum Member

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    The average family is about two months from living on the streets (what I was taught in Econ)...
     
  9. LostHiWay

    LostHiWay Golden Member

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    I only make about about $25,000 a year,not much but not that bad for being 22 and still in college. Right now I have about $6,000 saved, and I have tons more "materialistic crap" than my friends.

    I think the main problem with people is that they waste money. I try to keep from buying stuff that has no actual value....ie: drinks at bars, fast food for lunch everyday and other stuff people just don't need and is a complete waste of money.
     
  10. jeremy806

    jeremy806 Senior member

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    You need a few months of living expenses short term (more or less depending on demand for your job type), and a lot of long term savings. It annoys me to see people 30+ that spend money like water but are three paychecks from broke. With today's increasing life expectancy, you need to save the equivalent of 15% of your income for 40 years to quit working and maintain the same life. If that sounds like too much, you need to make more, spend less, or die young.

    However, when you are just out of college or any other financial mess, you have to deal with your debt before you can save, but hopefully you come out of college with increased earning potential to make up for the later start on saving.

    At least among people I know, there will be a lot of whiners in about 30 years.

    Jeremy806
     
  11. PrinceofWands

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    With my coming raise in July I'll make right around 32k a year. I have about $50 in savings in one account, $200 or so in another, and my checking account is close to perpetually 0. But I have my 401k, and a private investment portfolio as well (albeit both are VERY small right now). That's way dangerous considering I have a daughter, but this is the first job I've ever had that makes anywhere NEAR this good of money, so I guess it's ok for someone just getting into a decent job. If I get this new management position I'll be making considerably more and the 3rd thing that I'll do is standard savings deductions to both accounts from then on.

    Then there's a family member who has had six figures between checking and savings accounts for as long as I can remember (over 20 years at least), after retiring when he was earning about 40k a year. In other words, it varies GREATLY.
     
  12. UltraQuiet

    UltraQuiet Banned

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    I'm glad to see you have found better employment.


    Chief
     
  13. gplanet

    gplanet Senior member

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    I dont have a job right now, but probably have about 1/3 the money i've made total in my bank account. The other 2/3 has gone to food, computers, audio equipment, and a lot of money to car insurance and gas. My goal is to have $10k in my bank account going into my 2nd year of college so I have a little under 2 months to do that, i'll have to get a job of course. I want to have at least 100k when i graduate
     
  14. PrinceofWands

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    Same job actually. But after completing a bunch of projects my boss decided that like me or not, he had to pay me more to keep me producing enough to make us look good to the big-wigs. *shrug* It is nice to actually be compensated for the work one does, even if you aren't really in it for the money.

    Of course, as soon as the chance came to ship me off to manage my own account he jumped on it (read between the lines: get him the hell away from me). :cool: He called me at 11am on my day off (while I was sleeping since I'm graveyard) to tell me I had 3 hours to get ready and make an interview 45 minutes away for a chance to manage my own place (although to be fair he did warn me that something might be opening up sometime, just not when). No nice clothes that fit, no haircut, no shave, no shower, no resume, no research on the company...i was not exactly happy with that. But, with help from friends and family it all got done and I made it in only 1 minute late (they weren't ready anyway). Find out soon I hope.

    Anyway, thanks.


    You actually chief, or just a nickname? That new or have you always been and I just never noticed before?
     
  15. UltraQuiet

    UltraQuiet Banned

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    After all the "discussions" you and I have had you didn't know I was a Navy Chief. Does someone else use your account? You are the same Princeof Wands that was night security at a hospital right. You were a YN or PN in the Navy during the Gulf War?
     
  16. Fritzo

    Fritzo Lifer

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    We keep around $5000 in our savings. My wife and I make some pretty good dough though, so it should be more than that :( We just like to shop too much.
     
  17. PrinceofWands

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    I thought I'd asked you that before, but it's very late and I'm pretty tired. 8-( sorry. Knew you were navy but not what rank. I have so many friends still in, I get confused. Hey, you happen to know CT Kirk Berka by any chance? Not sure where he ended up being stationed over there. He should be chief by now, or close to.

    No, pretty much just me. Used to work security at the hospital, that was years ago. Did all kinds of stuff between that and my present job, night security for Sun Microsystems (actually now Security Trainer (whoop-ti-dooo) but same dif). Yeah, YN was my primary.
     
  18. bmacd

    bmacd Lifer

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    me=19 years old...in school...working full time

    HAD around $8000 before i got in my car accidents and before i got my jaguar and bikes, but that all changed once i bought them. I wish i had never bought any of them.. My bank account is close to $2000 now.

    -=bmacd=-
     
  19. gplanet

    gplanet Senior member

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    Capital One just raised my credit limit by $1000 to $1500, they're just trying to suck in another college student like me. It MIGHT work, but I don't think so ;)

    Most importantly, spend money smartly. The little things are what really add up. If you avoid using credit cards and getting loans, you can stay out of debt. Use Hot Deals forums for large purchases, and always be looking around for things you don't need and can eBay - you probably have a thousand dollars of crap lying around. Always know how much money you owe, how much is in your bank accounts, and your coming income and expenses. Having this info on your mind can help you plan how much money you can spend and how much you need to save.
     
  20. UltraQuiet

    UltraQuiet Banned

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    Don't know him.


    Back on the topic. My wife and I are both 37 and we both work. We seriously started trying to save money about the time our oldest was born in '92. The key to it for us was to put the money where it was hard to get at. My wife is goverment service and we take the max deduction allowed in her Thrift Savings Plan ( like a 401). We also have some other IRA's and mutuals that we invest a fixed amount in monthly. We also bought a home while I was stationed in GA and that too was an investment based on taxes and profit made when sold. It does take discipline and every little bit helps. When we first started we were saving $150/mo spread over 3 mutuals. We now have well over six figures saved up. Just start small and be consistent.


    Dave
     
  21. mithrandir2001

    mithrandir2001 Diamond Member

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    I have about $25,000 in non-retirement savings, even though I just bought a house two months ago and needed about $33,000 to close. I'm 29 and would not call myself "average" though I am certainly middle class. I will probably always have an above-average savings stash because one of my greatest fears is lacking money and being a slave to the debt collector.

    Yes, you should have enough money to cover 6-9 months of unemployment. This may sound daunting but you don't need 6-9 months of income, just 6-9 months of "gap coverage" between unemployment compensation and living expenses.

    Say you earn 50K...that's a little over 4K a month. You aren't expected to have 24-32K saved in case of unemployment. Rather, your living expenses may amount to $2500 a month and you might get $1500 a month from unemployment. So your "gap" is $1000, which means you should have $6000-$9000 saved up. That should be easily attainable.
     
  22. RossMAN

    RossMAN Grand Nagus

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    Not very much, I dunno the statistics but it wouldn't surprise me if 90% of Americans live paycheck to paycheck (including me :( )

    Eventually I'd like to have 6 months worth of pay saved up in a savings account (just in case) but that's far far away.
     
  23. Viper GTS

    Viper GTS Lifer

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    I have to commend you, buying your new Accord was an excellent step towards that goal...

    Err...

    :eek:

    Viper GTS
     
  24. JellyBaby

    JellyBaby Diamond Member

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    Just out of curiosity how much interest (if any) are you all earning on your savings account balance?
     
  25. RossMAN

    RossMAN Grand Nagus

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    Thank you, thank you, thank you *bows*

    Oh wait you weren't really complimenting me, were you?

    :(