I just read something where one of the points were corporations are making profits and people are cash poorer than ever
Guys…. why are we spending when we can't afford to spend?
I am so confused. I am a 28 y/o female living in the US and I think I am one of the few out of my friends that 1) does not shop at amazon 2) have tv subscriptions 3) use door dash or other delivery services
More niche things I do not have is have a car and insurance, or buy new clothes that often (I shop mostly second hand but) or buy in general
My fridge is mostly empty cuz it is just me. I don't throw out food because I do not over buy food.
I am really shocked at all the waste and rising prices of food and goods but more shockingly I am surprised by my fellow peers who are just consuming and consuming and consuming and wasting and wasting and wasting.
This mindset and subsequent actions increases wage gap, proves to companies "yes they are still so broke and will still pay for things at a higher price and things they don't need" and keeps you poor
How is this not obvious?
Edit: Just saw someone comment these are little things vs. houses, education and healthcare. In-state community college courses in CA are cheap, same in my home state of IL, so not sure if I agree. Houses? I see homes in desirable states NC, AZ for 300k… if your goal is a home owner… that price range still seems doable to me…. Yes healthcare is overpriced, but have a healthy BMI, move, don't eat garbage and hopefully you won't need to be treated so often (obviously diet and health won't change genetic disposition / other sources of illness)
Overconsumption is keeping us poor — why isn’t this obvious?
byu/Competitive-Rush437 inpersonalfinance
Posted by Competitive-Rush437
32 Comments
Yeah but honestly a lot of people are just trying to feel better about their situation with small purchases since the big stuff (houses, healthcare, education) is already out of reach anyway
Like why save $5 on coffee when rent is still gonna eat 60% of your paycheck regardless. The system’s kinda designed to make you feel hopeless about real financial progress so people cope with little dopamine hits instead
Americans are addicted to cheaper junk and luxury cars they can’t afford
Consumption seems to be baked into the culture at this point, unfortunately. And personal consumption makes up for 70% of the GDP, so even if it grinds to a halt, that also nukes the economy.
In 20s and even 30s, public appearance is so important, especially to a generation raised on sharing an image on social media.
Ignore the noise. You’re doing the right thing and you can convince people that saving money on the little things is worth it in the long run.
Humanity is programmed so that we must always be moving forward, living better than our parents. Its logical to say we should dial back when things get too expensive. But nobody wants to admit we are worse off (or even equal to) previous generations.
Overconsumption isn’t keeping us poor, inflation has drastically inflated cost of living, things like rent, healthcare and groceries are way up and wages are not matching the increase. -why isn’t this obvious?
lol at the OP edit:
Community college courses being cheap: what about everyone that got undergrad and grad degrees, what about people who have dependents like children and aging parents and spouses and reoccurring diseases? What about childcare costs?
And lol at the idea of housing being cheap, I’m not even talking mortgages I’m talking rent.
It’s great you’re spending less than your peers but don’t act like the answer is so fucking obvious lol
Eh maybe. There’s a fine line of being extremely frugal to the point you aren’t enjoying life and overspending beyond your means.
I’m not gonna spend my life watching an imaginary number in my bank account go up, but i don’t need to drown in debt to enjoy life either.
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Oh, sorry. I’m sorry…
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I had to forgo my car recently and went through financial trouble. Huge credit card spending and loans etc. all because I was chasing the lifestyle.
after a few years of not doing any of that, living below my means, and just being happy with what is enough for me to be healthy it is surprising to see how much we can actually save and how little we actually need to survive and be happy and healthy.
My credit is better, I don’t have massive savings but am building towards that. Comparison truly is the thief of joy!
I’m 37 and I’ve been pretty frugal on a average salary and I have a net worth of 500k it isn’t difficult to be wealthy. Married, budget,
Last night, I was on here, and a lot of people apparently over extended themselves for Christmas. Used to be me many years ago. The things I just had to have i never used. So gross. Now, I’m a minimalist!!
Because marketers got us outgunned. They’re doing eye tracking tests to determine where to put the buy button on their page. They make it hard to cancel subscriptions. They know that if you looked at one thing, you’re very likely to like another specific thing they keep suggesting to you. And it takes time and effort to decrease your exposure to all of it.
Overconsumption when income is less than the spent money is the problem. There is no issue with someone with a higher income paying for all of the things you listed and more.
People not realizing how much they can actually afford while believing credit cards are just buy now pay later fun plastic is causing the issues, on top of FOMO by seeing what higher paid people or other people going into debt are getting.
What do you do for fun?
More niche things…like a car???
Surely you don’t actually think that *most* of America can afford *not* to have a car???
Like the rest is fair. Sure. But a car? That’s not niche. Owning a car is pretty much a requirement in America. Or knowing someone with one.
What do you do for fun? Eating good food is fun. So is traveling.
Shopping addiction is so real & not talked about enough. In fact it’s encouraged.
“Oh it’s just $5, it’s fine” Sounds a lot like “oh it’s just 1 drink, it’s fine” when you know to shouldn’t be doing it
Worry about yourself. I’m 32 with over 200k saved up and long since stopped caring/ giving other people advice. I only care about myself, my immediate family, and a select few other ppl. Idgaf what other ppl do anymore
When the economy deteriorates many voices start speaking up about spending habits like it’s some profound wisdom.
Find new friends if yours are so distressing. You don’t have to look very far to see people who are cutting every corner, stretching every penny, doing all the things you pat yourself on the back for, and are still just barely getting by. When you talk to people living on the edge like that, it’s not so easy to smugly dismiss all poverty as just wastefulness and bad choices.
If you think relativity trivial expenditures like tv subscriptions, Amazon, and Door Dash is what’s making you poor, I have some bad news.
Yes, people often make bad spending decisions far beyond their means. But being only able to spare on average a couple hundred dollars a month by foregoing your discretionary spending means you’re already poor.
Americans as a whole are not poor. We are wealthier than we have ever been with incomes higher than ever. And yes, this is inflation adjusted.
It’s easy to blame something else, hard to look in the mirror honestly at your spending.
Personally I’d rather have enough money to be comfortable and also actually experience life instead of hoarding wealth. I think there’s a balance to be had but do what works for you
Because there’s companies that spend millions every year to figure out the best way to hit the urge in brain that tells you you need something so you go buy it. Then because you “have no self-control” it’s not being heavily advertised to non stop.
Relatively speaking, cost of living is expensive and luxuries are cheap
‘Needs’ like food, housing, and transportation are more expensive than they have been in recent history, while ‘Wants’ like having a smart phone, internet service, unlimited streamed entertainment, games are cheaper than they’ve ever been.
And yes, a lot of people indulge in overconsumption as well.
Your post is definitely relevant to a subset of the population.
But keep in mind there’s a large percentage of the population that spends every dollar they earn on just living expenses. They aren’t poor because of subscription services, Starbucks, or avocado toast. They are poor because their jobs don’t earn a living wage. Some of these people work two jobs and still don’t earn a living wage.
Now for the people who are keeping up with the Joneses and spending money that’s truly discretionary on wants versus needs without funding retirement accounts…they’re in for a big surprise down the road.
Let me ask you this how do you over consume when you never had it in the first place? Some of us are just surviving and we’re one paycheck away from being homeless and it’s been like that our entire lives. But you know work hard and all that I understand but sometimes I don’t get it. We live in a material world and we’re not supposed to enjoy it? Then what are we doing on the planet in the first place? Save your money and do good and hopefully good follows you.
It’s keeping up with the joneses. My coworker and I make the same income. She is the breadwinner of the family. My husband makes 35% more than I do, her husband makes 35% less than she does. We bought a $220k house (very normal price and modest house in our area), she bought a $350k house.
We go on 5-8 vacations a year. Most just weekend jet setting stuff. 2x at least a week vacation. My coworker can’t even afford to do a weekend getaway and she constantly is saying she’d love to go do X but can’t even afford the hotel for the 2 nights.
We also have cars we bought in cash, so they are paid off and we will drive them into the ground. Coworker has 6 months left on her car and 4 months on her husband’s car, she is car shopping for newer cars. Like keep the 3 year old car you have 😭
People are so squeezed and powerless. Let us enjoy what little we have of happiness
I live similarly to you and I don’t disagree that people living like we do would improve their financial situations.
However, we can look at past economic data and see that wages stopped keeping up with productivity around the Reagan era. There was a time when a family of four could live comfortably on the salary of a single man with a high school education. Saying overconsumption is the problem ignores the massive changes to our economy that made previously affordable levels of consumption unaffordable.
Yes, everyone could live like us… but the lack of consumption would tank the economy, people would be laid off, those people would consume even less, more layoffs, businesses close, and it’s a would-be death spiral for the economy without appropriate corrective measures (and one of those measures is getting people to spend more).
Too much common sense for Reddit.