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Wednesday, September 03, 2008

Spending Statistics

These statistics show why consumer spending may not be able to avert an economic downturn. The consumer may already be near their maximum capability to spend.
  • Spending more money than earned. According to Bankrate.com, about "40% of American families annually spend more than they earn."


  • Living paycheck to paycheck. According to a CareerBuilder.com article 41% of workers often or always live paycheck to paycheck.
    • Both of these statistics were based on data from before the mortgage and credit crisis. I expect the percentages are now even higher, making it more difficult for the consumer to save the economy.

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

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

    Copyright © 2008 Achievement Catalyst, LLC
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    1 comment:

    1. Anonymous9/04/2008 11:50 AM

      Good points. Don't forget that oil is down from its highs, but still higher than six months ago. The pain isn't over yet in my opinion.

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