What Is the Average American Savings Account Balance?

[Wingnut]

Why do you say that?

Every credit card I own allows me to pull cash out at 0% interest for 12, 15, or 18 months. What's a $300 or $400 transaction fee on 10K for 18 months?

You've got to use your leverage sometimes, my friend.

Man, you are Sandy-O the Bartender from the Bronx stupid.

[Cyber Liberty]

Why do you say that?

Every credit card I own allows me to pull cash out at 0% interest for 12, 15, or 18 months. What's a $300 or $400 transaction fee on 10K for 18 months?

You've got to use your leverage sometimes, my friend.

Because what you are not getting is, Interest is a two-way street.  The people who understand Interest are the people who lend money, not the people who rack up debt and pay the Interest, which you are suggesting is a proper alternative to having savings.  it's not, and suggesting it is is performing a disservice to anybody who listens to you.

[roamer_1]

The idea of charging my cards up to those levels makes me feel physically ill.  I use my credit cards extensively, but pay them off in full every month and I have never paid interest on them.  They are a tool, not a safety net.

Yeah, it ought to make you ill.
I cut mine up. No more charging, anywhere. And guess what? other than about 40k left on my house, I don't owe nobody nothin.

[Cyber Liberty]

Man, you are Sandy-O the Bartender from the Bronx stupid.

Or he thinks we are.

[Cyber Liberty]

Yeah, it ought to make you ill.
I cut mine up. No more charging, anywhere. And guess what? other than about 40k left on my house, I don't owe nobody nothin.

You're living right, @roamer_1.  My retirement goal was no Mortgage at all, which I had satisfied when I retired a year ago last Saturday.  I sold my paid-off home in the Suburbs to buy a small Castle that's over 2.5X the size of my old one, with cash on the barrel-head.  The bar is forever open at my place.

[Wingnut]

Or he thinks we are.

Every year we get a low flyer.  A Dem plant per se. 

[OfTheCross]

You REALLY don't know what you're talking about.
Insurance requires income.
Your entire theory assumes you will not get wrecked.
But chances are, you will get wrecked.
And all that happy crap is gone in 3 months.
*GONE*

What you believe is a lie, pure and simple.
To the basic premise: Profit requires risk.
That never changes.
Risk really cannot be insured against. When it blows up real good, someone is going to be the bagholder, and that won't be the folks with the money.  That is how it works.

I know. I walked that road. There and back again.

Of course there are scenarios where my plan won't work. I've already said in those cases you might have to liquidate some or your investments. But most emergencies can be handled with $500 - $5000.

Think auto repairs, medical deductible, etc.

What scenario were you specifically thinking of when you responded to me?

Because what you are not getting is, Interest is a two-way street.  The people who understand Interest are the people who lend money, not the people who rack up debt and pay the Interest, which you are suggesting is a proper alternative to having savings.  it's not, and suggesting it is is performing a disservice to anybody who listens to you.

Funny you say that...I've lent money on numerous occasions for a profit. Take it from the card at 3% and charge the borrower 10%.

The idea of charging my cards up to those levels makes me feel physically ill.  I use my credit cards extensively, but pay them off in full every month and I have never paid interest on them.  They are a tool, not a safety net.

Same here. I hate debt. I use my cards the same way and that's why I have the option to rack it up in case of an emergency.

[Cyber Liberty]

Every year we get a low flyer.  A Dem plant per se.

Yes, and we're still having fun with this one.  Aren't you glad we didn't lose him in the Crash?

[Cyber Liberty]

Same here. I hate debt. I use my cards the same way and that's why I have the option to rack it up in case of an emergency.

This may come as a shock, but I can agree with that.  It's a form of self-insurance.   

The only fly in that ointment is the moment you need to tap that credit to address a crisis, the lenders usually revoke the credit because life's circumstances changed, leaving one with no options.

[Wingnut]

Yes, and we're still having fun with this one.  Aren't you glad we didn't lose him in the Crash?

Yeah.  I was just thrilled......

[roamer_1]

You're living right, @roamer_1.  My retirement goal was no Mortgage at all, which I had satisfied when I retired a year ago last Saturday.  I sold my paid-off home in the Suburbs to buy a small Castle that's over 2.5X the size of my old one, with cash on the barrel-head.  The bar is forever open at my place.

LOL! It only took me half my life, and getting wrecked by illness to get past the crap that @OfTheCross believes... And that was self-employed too... Making 6 figures, but by the time all the crap was added up, I was going in the hole... One client stiffs me for 20 to 50k for 90 days and suddenly I am in a tailspin and fighting like a junkyard dog to cover all that out-money and commitment.

And the funny part is that somebody somewhere stiffing me 20 to 50k for 90 days wasn't all that unusual.

Nah. It ain't worth it.  Now I have a pretty unassuming cabin, I drive a truck so hillbilly and shitty looking that I never lock it, and leave the keys in it all the time. Heck, I could leave 10 grand in the glove box, and it would be fine... Yeah, it ain't pretty... But it hauls ass.

Same with everything. None of it new. Living within my means and then some. I am literally living on less money now than I used to burn in coffee and lunches alone.... and that means I have a bunch more liquid assets than I ever have before.

Out of debt, and the pressure is off... I make what I want to, and I take the work I want. Which means I make money every time.

[OfTheCross]

This may come as a shock, but I can agree with that.  It's a form of self-insurance.   

The only fly in that ointment is the moment you need to tap that credit to address a crisis, the lenders usually revoke the credit because life's circumstances changed, leaving one with no options.

Correct. That's why I happily take large credit card offers now. I don't ever use them for the most part, but it's good to have them there just in case.

Credit is funny that way. When you don't need it, every one wants to give you money. When you do, no one wants to lend you a dime.

[IsailedawayfromFR]

Correct. That's why I happily take large credit card offers now. I don't ever use them for the most part, but it's good to have them there just in case.

Credit is funny that way. When you don't need it, every one wants to give you money. When you do, no one wants to lend you a dime.

So why do you believe when the credit crunch comes that you will be allowed to retain those cards?

You do know don't you that they can be revoked upon the card company's whim?

First rule in freedom and independence is do not depend upon others for your wellbeing.

[catfish1957]

You do know don't you that they can be revoked upon the card company's whim?

IMO credit cards have one function.....   convienece.   As far as I am concerned, they are a short term money replacement, and payed off automatically. 

[OfTheCross]

So why do you believe when the credit crunch comes that you will be allowed to retain those cards?

You do know don't you that they can be revoked upon the card company's whim?

First rule in freedom and independence is do not depend upon others for your wellbeing.

We went through the 2008 crunch and they weren't affected.

If I fear they may be, I'd pull the cash out behorehand and just sit on it. If I didn't end up using it, I'd just pay it back to the card.

The only times my cards have been closed is due to inactivity...

[Cyber Liberty]

We went through the 2008 crunch and they weren't affected.

If I fear they may be, I'd pull the cash out behorehand and just sit on it. If I didn't end up using it, I'd just pay it back to the card.

The only times my cards have been closed is due to inactivity...

Do you think that a credit card company can't rescind a card, in part or in total, any time they want with no reason given?  LOL!

[OfTheCross]

Do you think that a credit card company can't rescind a card, in part or in total, any time they want with no reason given?  LOL!

No, I addressed that possibility.

[roamer_1]

Of course there are scenarios where my plan won't work. I've already said in those cases you might have to liquidate some or your investments. But most emergencies can be handled with $500 - $5000.

Think auto repairs, medical deductible, etc.

What scenario were you specifically thinking of when you responded to me?

Well, most emergencies for me would be covered out of the mason jar - I don't know how much is in that thing, but it is choked by a tight roll of 100s. It is actually my business seed corn, but same difference...

But then, I don't have 'auto repairs' as I fix my own, nor 'medical deductible', because my doc is a Cheyenne medicine man, and generally, anything I will need done will be covered by a pound of tobacco and 50 bucks - to include any meds I can't get out of the woods.

And that is more my point. You can insure your risk till the cows come home, and you won't get it done. You can say your way is better than mine, because that roll of bennys is sitting on the shelf instead of drawing interest (which would not be true, btw)... And you can claim that using other people's money is a wiser way to handle your fallout (which also would not be true, btw).

Let me say it a different way - BECAUSE I am self contained, BECAUSE I put up food, BECAUSE I can fix my own, BECAUSE I owe no man, my real cost of living is under 600 per month, total.

Whatever machinations you might dream up, nothing beats that, because I can always self-finance, and about any storm can be weathered. My average income is somewhere around 5 to 10 times that much, depending on the month, so virtually all of what I make rolls back into making more. I have never been so bulletproof in my whole life. And I am sure as hell making more real, unencumbered money that when I was chasing all that bullshit around.

[Cyber Liberty]

No, I addressed that possibility.

No, you did not.  You just repeated your incorrect assumptions made previously.  This is the level of discourse we've all come to know and love from you.

[thackney]

We went through the 2008 crunch and they weren't affected.

If I fear they may be, I'd pull the cash out behorehand and just sit on it. If I didn't end up using it, I'd just pay it back to the card.

The only times my cards have been closed is due to inactivity...

A medical emergency that stops your income is likely going to stop your credit.  You provide income levels to the agency issuing the credit card.  When that is no longer valid, neither is the credit.

And on the house, say a flood, there is a limit to what they are allowed to insure.  And in a bad flood, it is easy to exceed those limits both with house and belongings.

[OfTheCross]

No, you did not.  You just repeated your incorrect assumptions made previously.  This is the level of discourse we've all come to know and love from you.

"If I fear they may be (canceled), I'd pull the cash out behorehand and just sit on it. If I didn't end up using it, I'd just pay it back to the card."

I acknowledged the possibility and gave a resolution.

What else didn't you understand?

Well, most emergencies for me would be covered out of the mason jar - I don't know how much is in that thing, but it is choked by a tight roll of 100s. It is actually my business seed corn, but same difference...

But then, I don't have 'auto repairs' as I fix my own, nor 'medical deductible', because my doc is a Cheyenne medicine man, and generally, anything I will need done will be covered by a pound of tobacco and 50 bucks - to include any meds I can't get out of the woods.

And that is more my point. You can insure your risk till the cows come home, and you won't get it done. You can say your way is better than mine, because that roll of bennys is sitting on the shelf instead of drawing interest (which would not be true, btw)... And you can claim that using other people's money is a wiser way to handle your fallout (which also would not be true, btw).

Let me say it a different way - BECAUSE I am self contained, BECAUSE I put up food, BECAUSE I can fix my own, BECAUSE I owe no man, my real cost of living is under 600 per month, total.

Whatever machinations you might dream up, nothing beats that, because I can always self-finance, and about any storm can be weathered. My average income is somewhere around 5 to 10 times that much, depending on the month, so virtually all of what I make rolls back into making more. I have never been so bulletproof in my whole life. And I am sure as hell making more real, unencumbered money that when I was chasing all that bullshit around.

You, my friend, are living wisely. My only real expense currently is my mortgage. So I'm not too far behind where your are. 

And for the record, I'm not saying that my way is better, it's just an alternative.

A medical emergency that stops your income is likely going to stop your credit.  You provide income levels to the agency issuing the credit card.  When that is no longer valid, neither is the credit.

And on the house, say a flood, there is a limit to what they are allowed to insure.  And in a bad flood, it is easy to exceed those limits both with house and belongings.

That's a catastrophic event, indeed.

Regarding the credit...the banks don't know you got fired unless you tell them or apply for new credit. You can pull all of the money out beforehand and just sit on it like I told Cyber.

Thankfully I've got Flood Insurance and Homeowners' Insurance to cover any losses. I don't have may expensive toys, I suppose if someone did, they may not be 100% covered. I am, though.

Ultimately, in an even of that magnitude, it's likely you'd have to tap into your investments  if the Insurance Companies are dragging their feet.

[thackney]

Regarding the credit...the banks don't know you got fired unless you tell them or apply for new credit. You can pull all of the money out beforehand and just sit on it like I told Cyber.

Your belief you can predict emergencies in advance is very naive.

Thankfully I've got Flood Insurance and Homeowners' Insurance to cover any losses. I don't have may expensive toys, I suppose if someone did, they may not be 100% covered. I am, though.

Yeah, me too.  But you may consider tractors and the like expensive toys, but keeping the cattle fed feels different to me.  And my maxed out insurance did not cover costs in Harvey.  It helped a long way, but depending on credit cards at that time would have been insane.

Ultimately, in an even of that magnitude, it's likely you'd have to tap into your investments  if the Insurance Companies are dragging their feet.

Tapping investments at the wrong time can be a whole lot more expensive than being well prepared.

Cheers!  I hope you don't have to learn these life lessons the hard way, but it appears you might.

[Cyber Liberty]

"If I fear they may be (canceled), I'd pull the cash out behorehand and just sit on it. If I didn't end up using it, I'd just pay it back to the card."

I acknowledged the possibility and gave a resolution.

What else didn't you understand?

That somebody who is intelligent enough to operate a checkbook and Credit Card would consider doing something that idiotic.  And, in case you did not notice, the topic is "unforeseen emergencies," one of which you would have obviously foreseen in order to pursue your course of action.  It's a non-sequitur.

[OfTheCross]

That somebody who is intelligent enough to operate a checkbook and Credit Card would consider doing something that idiotic.  And, in case you did not notice, the topic is "unforeseen emergencies," one of which you would have obviously foreseen it in order to pursue your course of action.  It's a non-sequitur.

You don't have to forsee the emergency to do what I'm suggesting.

If I need $5000 for an emergency that I didn't anticipate I can all my card provider and have cash put into my account within 24hrs. If something needs to get paid immediately I can just swipe the card, of course.

It's a viable option for most emergencies.

Your belief you can predict emergencies in advance is very naive.

Yeah, me too.  But you may consider tractors and the like expensive toys, but keeping the cattle fed feels different to me.  And my maxed out insurance did not cover costs in Harvey.  I helped a long way, but depending on credit cards at that time would have been insane.

Tapping investments at the wrong time can be a whole lot more expensive than being well prepared.

Cheers!  I hope you don't have to learn these life lessons the hard way, but it appears you might.

Understand, no one can predict emergencies. I don't know where you got that notion.

What you can do, is have a plan. Your situation is vastly different than the majority of Americans as we don't own livestock and tractors. So my idea may not be an option for you.

Depending on the investments you certainly may incur a fee. But something like a Roth IRA or a brokerage account should be a good option.

Lol. Honestly, I can't even begin to imagine how much it would cost to insure livestock 

[musiclady]

That somebody who is intelligent enough to operate a checkbook and Credit Card would consider doing something that idiotic.  And, in case you did not notice, the topic is "unforeseen emergencies," one of which you would have obviously foreseen in order to pursue your course of action.  It's a non-sequitur.

Not to mention naive and convoluted........