Wednesday, May 30, 2007

Wealth Building Dilemma - The Rich Do Not Save

For people that think higher incomes with help them save, think again. This Marketwatch article The Rich Don't Save Either describes how a HSBC survey showed that people who make $250,000 a year were not saving. Here's a quote of some of the interesting facts:

"HSBC found that 49% of respondents with at least $250,000 in income aren't saving more because they simply 'want some spending money.' In 28% of the cases for those who earn between $100,000 and $250,000, respondents say they do not save more because 'something unforeseen always comes up.' And in nearly one in 10 situations, people who earn $250,000 or more say they aren't even earning "enough to make ends meet as it is."

Indeed when HSBC asked what prevents them from saving more, the top answer was the need to pay everyday bills, with 34% of respondents of those who earn more than $250,000 concurring. "

Saving is about discipline and making choices. Saving doesn't just happen when income grows. As I have written before, saving is the starting point to building wealth. So it is important to save, no matter what one's income is.

For more on The Practice of Personal Finance , check back every Wednesday for a new segment.

Photo Credit:, Michael Connors

This is not financial advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC


pfstock said...

Isn't it surprising that people who make $250,000 or more a year can say that they aren't earning "enough to make ends meet"? That is already a lot more than most of us can ever expect to earn.

On the other side of this is people who imagine that all of their problems would go away, if only they made more money. In any case, I agree with your sentiment here about saving.

Super Saver said...


Thanks for your comment.

I agree with your observation. Nowadays, the norm seems to be to live beyond one's means at all income levels. So making more money never solves money issues that people have.