On several occasions we've pointed out that the baby boomer generation is, to put it mildly, ill-prepared for retirement. In fact, over 50% of baby boomers have basically no savings set aside for retirement at all. Now, a new survey from Northwestern Mutual helps to shed some light on why Americans are completely incapable of saving money.
First, roughly 50% of Americans have debt balances, excluding mortgages mind you, of over $25,000, with the average person owing over $37,000, versus a median personal income of just over $30,000.
Therefore, it's not difficult to believe, as Northwestern Mutual points out, that 45% of Americans spend up to half of their monthly take home pay on debt service alone....which, again, excludes mortgage debt.
Of course, if Americans are incurring this much debt then it must be for absolute necessities like healthcare and basic nutritional needs, right? Afterall, the entire federal entitlement farce is dependent upon helping good hardworking, trustworthy Americans who, for the most part, spend their money wisely but sometimes need just a little extra help to make ends meet.
Well, at least that's the illusion that Democrats would love for you to subscribe to...unfortunately it couldn't be further from the truth. In reality, the Northwestern Mutual survey found that Americans spend 40% of their monthly income on discretionary expenses including "entertainment, leisure travel and hobbies."
Adding insult to injury, nearly a quarter of all respondents said that "excessive/frivolous spending" was the cause of their debt problems.
Aside from basic necessities, on average, Americans spend about 40% of their monthly income on discretionary expenses such as leisure travel and hobbies. In fact, one quarter cite “frivolous/excessive spending” as a financial pitfall.
Meanwhile, nearly 20% of people can only afford to make minimum payments each month on their credit card debts.
So, for the taxpayers of this great country, rest assured that your tax dollars are being put to good use to buy Joe and Jill Schmo a nice annual trip to Cancun.
Full survey results here: