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So, Dave Ramsey....on car buying....

JesasaurusRex said:
I think the issue for me with the leverage is that I bet the majority of people that are taking that advice don't have enough liquid to weather a storm too long. Maybe a couple months on average? Loss of job and a large unexpected expense and that minority 6 month cushion person just had that 6 month cushion turn to 3. Guess you can borrow your way out of that too...

But what do I know
Click to expand...

Median savings account balance in the US is $5300.00

That's not a lot of savings

Oh look; the more money you make, the more you save. Something could be said about rising tides and economic support

average-bank-account-balance-by-income_keg1l0
 
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Yakoo752 said:
Median savings account balance in the US is $5300.00

That's not a lot of savings

Oh look; the more money you make, the more you save. Something could be said about rising tides and economic support

average-bank-account-balance-by-income_keg1l0
Click to expand...

Can you explain the graph, I'm having trouble understanding it
 
X axis is income brackets as a function of %tile.

If you are a single earner making $100k a year you are in the ~88% percentile (I think this still holds true).

In a symmetrical distribution mean and median are the same.

Since the median is less than the mode (by a lot), we know the distribution skews to the left. "Exactly" 50% of the people have less then $20k in savings
 
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Yakoo752 said:
X axis is income brackets as a function of %.

If you are a single earner making $100k a year you are in the ~88% percentile.

In a symmetrical distribution mean and median are the same.

Since the median is less than the mode (by a lot), we know the distribution skews to the left. "Exactly" 50% of the people have less then $20k in savings
Click to expand...

okay most of that makes sense but where does it show you the earnings for the percentile?

Taking the 80-89 percentile, the median savings is 20k and the mode savings is 52k, but where does it show what the income level is from 80-89%? Where did you get 100k from?
 
JesasaurusRex said:
okay most of that makes sense but where does it show you the earnings for the percentile?

Taking the 80-89 percentile, the median savings is 20k and the mode savings is 52k, but where does it show what the income level is from 80-89%? Where did you get 100k from?
Click to expand...

You have to look up income distributions. I just happen to know $100k annum is in the 80%, iirc it is 88%.

Here is a reference

https://www.statista.com/statistics/203183/percentage-distribution-of-household-income-in-the-us/
 
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so the average 100k income person has somewhere between 10-20k saved?

Ya, i'm not advising that person to not pay down a car note to invest a couple thousand dollars lol. What world are people living in?
 
Been really itching lately to get another bike. If I come across a no interest deal I’m taking it, screw you Dave.
 
I wonder how much this matters at certain point. Beyond having rainy day fund in bank account, which what this graph says it represents, rest usually goes in to investment. So this might not represent total savings at certain point.
 
UDRider said:
I wonder how much this matters at certain point. Beyond having rainy day fund in bank account, which what this graph says it represents, rest usually goes in to investment. So this might not represent total savings at certain point.
Click to expand...

possible, but i don't buy it, not on average
 
Blankpage said:
Hate to be 60 and have only $60k to my name. That would have me stressed the fuck out.
Click to expand...

i'd hate to have a mattress payment
not even pretending not to bust Robs balls anymore (he knows i love him) but we're not seriously going to have the discussion that financing a mattress, even at 0%, is sound financial advice
 
Obviously that mattress includes massage with happy ending. Dudes not totally irresponsible with his money.
 
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