Reply to Why is it hard for some privileged people to realize that saving is hard?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Saving is hard for people on a low income. Saving should not be hard for people who are making a high income but are living beyond their means. I understand this as a persone who at one time in my life had very low income and now has a good income. [/quote]

Look, part of it is numbers and part is attitude.  Tom Wolfe, in [i]Bonfire of the Vanities[/i], has an extensive paragraph where the main character goes into how he earned $980,000 last year, and yet still spent [i]more[/i] than $980,000.   And how essential it all was, and how he couldn't possibly cut back on anything.

It relative, you have to live within your means to save money.  You can make $40K a year or 200K a year and be broke or OK in either situation.

I am a federal employee, I earn about $160K per year, and its for a family of five.  We live in a decent house that I just finished paying off. I dumped some savings and lump-summed the last of the loan.   I'm 40 years old, so I'm no spring chicken but I'm also not thinking about retirement or something like that.  My kids go to public schools, we dont take exotic vacations, its usually a nice week or 2 at the beach.  I shop at the salvation army when it suits me.  And I take my kids there when we donate our old stuff.  We love yard sales, craigslist, and hand-me-down iPhones.  my car is 14 years old.  Wife's is 12.

If I bought everything I thought I wanted I'd be broke and in debt up to my eyeballs.  If I had to have a handyman, plumber, electrician, etc come repair everything in my home that failed or needed upgrade, I'd be broke.  If I had to have my car repaired every time something failed.....well you get the point.  Nobody "privileged" me with ability to fix things on my own, I've had to go and take the time to learn and make little mistakes along the way.  Nobody "privileged" me with ability to resist buying things I cannot afford, I had to watch others mess up and learn to avoid those mistakes.  I've had a goodly amount of grace too, but I also haven't squandered it.

Saving is hard for me too.  Because the more you earn, the more your appetite will grow...[i]if you let it. [/i] I basically skim a portion for savings before it even hits my checking account.  $750 per pay check goes right into long term savings.  Dont even see it.  You've got to make it automatic.  Even if its $50, $100, whatever.  Just adjust the slider for your budget.

[/quote]

I really like your thoughtful response and feel it’s terrific advice for many people.  But, the OP likely considers $160k to be priveledged. Let’s say you earned $80k instead for your family of five. It would be much more difficult to save $750/each month. And that is the point. The more you make, the easier it is to save. And those who are higher earners don’t see that. [/quote]

"just adjust the slider" is basically "let them eat cake."  poor people's SLIDER IS AT ZERO.  That's the point.

I don't want to be totally dismissive of the idea of encouraging savings among the poor, because I do think that at least building up $500 is going to mean that some people don't have to get payday loans.  But that's FIVE HUNDRED DOLLARS ONLY, and likely quite hard for the average minimum wage worker to put away, and erased in a day when something bad happens.  But to act like "just adjust the slider" is going to get the poor into the middle class is just ... dumb and yes, privileged.  [/quote]

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