6 Reckless American Financial Habits That Surprise Ours

What surprises our people in the financial habits of Americans, said the author of the blog “Normal Money” on Yandex Zen.

 6 reckless American financial habits that amaze our

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Next & # 8211; in first person.

“Rule one: never lose money. Rule two: never forget the first rule “, & # 8211; these are the words of Warren Buffett – perhaps the most successful investor in history.

Like 6 other major investors in the world – George Soros, John Bogle, Philip Fisher, David Dreman, Benjamin Graham & # 8211 ; he is American. Are there really only financial geniuses living in the USA? This is not entirely true. Indeed, Americans can handle money with confidence. But this confidence has a downside: a loss of caution.

Here are 6 reckless financial habits of US residents that should not be adopted.

Habit # 1. Spending a lot and saving little

It may seem that the USA is a country of investors. Indeed, investment is taught here almost from the cradle. The examples of the richest financiers play an important role. Nevertheless, a small part of the population is engaged in investing, even in the United States. And what about the bulk?

According to statistics, the average American spends 80% of his income, and that's before taxes. 62% have savings less than $ 1000. According to other sources, about 60% of Americans spent more than they earned in 2018. Millennials especially spoil the statistics: they live today, “invest in themselves” and do not deny themselves anything.

Habit # 2. Take loans for everything, including education

In this regard, the Americans should learn from the French. The debt burden of the average American family is more than $ 130 thousand, not counting the mortgage. Only for car loans, many spend half, or even more, their annual salary. Phenomenal figure & # 8211; there are an average of 10 credit cards per American.

A college loan is a common thing: 45% of US residents have it, because almost all education is paid. It continues to be paid years after college. Moreover, more than half of the young people surveyed from 22 to 37 years old believe that these expenses were absolutely useless.

Habit No. 3. Financial “betrayal”

Americans know how not to mix money and relationships, which is why families often practice a separate budget. The flip side of this rationality: two out of five Americans hide large expenses from the other half. These can include secret shopping, gambling and expensive hobbies, as well as credit cards and loans worth hundreds of thousands of dollars. For a family, such betrayal can be more destructive than usual: up to 30% of families collapse due to problems with joint expenses.

Habit # 4. Buying big and greedy cars

On average, Americans spend almost 16% of their monthly income on car maintenance. The most popular models in the United States are minivans, 4WD SUVs, pickups, trucks. They certainly consume a lot of fuel.

The explanation for this also lies in the American way of life: most of the population lives in private houses in the suburbs. Public transport is poorly developed there, and the car has to transport the whole family, an impressive supply of groceries from the supermarket and a tent (in the USA, auto tourism is very developed within the country).

Habit # 5. Launching tons of money on sales

Legendary sales in the USA are a celebration of consumption. Huge money can be saved. At the same time, all sales are tied to dates, for example: Christmas, Cyber ​​Monday, Labor Day. So you can plan ahead for all your big purchases. I just want to ask: what's the catch?

On Black Friday 2019, Americans broke the 2018 record: they spent $ 7.4 billion.The average order value also increased by 6% to $ 168. Moreover, most often they bought children's toys, video games, Apple Airpods and Samsung TVs, that is, goods are far from essential.

Habit # 6. Choose risky financial instruments

Many Americans love to invest. They have enough tools for this: you can make money on the stock exchange or the start-up market, and even by financing lawsuits.

However, US residents often invest in high-risk funds and high-yield stocks for a short period … For example, from 2018 to 2019, the number of cryptocurrency investors in the US grew by 81% to 36.5 million people.

To protect people from rash investments with catastrophic consequences, in the United States, they even introduced restrictions: every investor is required to obtain accreditation. To do this, he must have his own or joint capital with a spouse of $ 1 million, as well as an annual income of $ 200 thousand in the last two years. All investments in the market are made through a broker.

In a word, not everything is unambiguous with the financial culture of Americans. They love to invest and can afford it: the total disposable income of US residents (the one that can be invested) is about $ 14.8 billion. But they often forget about modesty – thrift is not a hobby for Americans. It is better to learn this from the Chinese or Japanese.