Many Americans Have No Cash Left Over

I saw an interesting statistic in this week's Business Week magazine that I wanted to share with you:

"28% of Americans say that once they have paid for their essential living expenses, they have 'no spare cash.' "

Yikes! If this is really true, then the situation out there is worse than even I thought it was (and I think it's pretty bad).

However, I'd guess the accuracy of this statistic may depend on people's perception of what is an "essential living expense." For example, I've counseled people who have considered the following to be "essential living expenses":

• Cable TV
• Weekly manicures
• An expensive foreign car for every member of the family
• Eating out five times a week
• A 3,000 square foot house for two people

Believe me, the list goes on and on.

So, in the end, it may not be that bad. On the other hand, given people's perceptions of what's essential, maybe we're on a very slippery slope as a nation.

What do you think?

Update: Time to link to the Beltway Traffic Jam.

Comments

[geoff]

I've had this discussion a few times with friends and family of mine. Correct me if I'm wrong, FMF, but I think you're asking the question of what's the difference between want and need?

This is good one. Since most people would agree that all we *really* need is food, clothing and shelter, many would say everything else is frivolous.

Now that's all fine and dandy, but is food, shelter and clothing enough to say that we're living a "good" life? Purists/minimalists(?) would say yes, but then there are folk like me that say that it may not be quite that simple.

Now I wouldn't agree that someone *needs* to have a 3000 sq. ft. home for two people, but I would say that having a place that's larger than 1000 sq. ft. for two people is more than reasonable (perhaps even on the small side). I would also say that while a weekly manicure seems a little excessive to me, a manicure every couple of weeks to a month doesn't seem all that outrageous to me.

Want and need is a pretty tricky game to play. How many wants do you need to pass over before you can say that you are still living a fulfilling life? Then again there would be plenty of people out there screaming at me for being a consumer and the like, but I think the people reading your blog would understand where I'm coming from.