Americans Now Have More Debt Than Savings | Morris Invest

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Many Americans now have more debt than savings, according to a recent report from economists at the San Francisco Federal Reserve. Their findings showed that even though Americans accumulated an unprecedented level of savings during the pandemic, those reserves have quickly been drained.
The report said that American household’s savings have been depleted at a shocking average pace of $70 billion per month since September 2021. How did this happen? The report found that from March 2020 to August 2021, Americans were able to rack up more savings than normal, due to factors like stimulus checks, and reduced spending due to business closures. But then, these pandemic-era savings were quickly exhausted by March of 2024.
Simultaneously, American’s are accumulating debt at an alarming rate. Data from the Federal Reserve Bank of New York showed that US household debt climbed to over $17 trillion in the first quarter of 2024. This accounts for all consumer debt, including credit cards, personal loans, car loans, and so on.. This data showed that credit card balances were actually down, but it’s important to note that an increasing number of borrowers are behind on their credit card payments.
Here’s the truth – it’s really hard to reach any financial goal without expanding your income. If you want to build up a savings account or pay off debt, in most cases you’ll have to find ways to add streams of income to your household. You can only budget and shrink your lifestyle so much. Even if you’re able to build up a sizeable savings account, at the end of the day, it’s still finite. Just like we saw in this data, savings accounts can quickly be drained to zero.
There’s nothing wrong with saving money, of course… but what is more powerful is having streams of income that are constantly replenishing your reserves.
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[alphaomega]

What do you expect in a debt based economic system. 🤓

[EnriqueCortez-kzsp]

😂 that's the economy war remember. Our own government is doing this

[invoxicated]

I owe nothing. My CC is at 0 balance, my house is paid for. No car payments and have a nice fat IRA. My mother didn't raise no fool. She taught me fiscal responsibility. I made wise choices on investments and learned how to save for the future. It's not hard to do. Just live within your means.

[FrankGallagherr]

Who thinks Harris is 100X worse than Biden.?

[IbrahimKone-ixqi]

!!I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks or Crypto will be appreciated

[margaretcleckner]

I have no savings but $3, 000 in debt. I have more left on my credit limit but I'm following Dave Ramsey and I refuse to spend another dime till I pay off my debt! No more gifts, no more clothes, no more lattes, concerts, donations, or books on the internet!

[omni]

your entire videos are ads, done watching your content.

[wavemasterx]

Most people live beyond their means as well ...instead of buying that Mercedes go get you a Honda or something cheap that still runs good and gets you where you need to go. instead of trying to impress people with designer clothes get something cheaper that looks nice.. a good percentage of people are in debt and it comes down to being their own fault

[GingerPeacenik]

My neighbor earns only $12k a year, has no savings or assets, and is over $60k in debt (half of it student loans). Yet credit card companies keep sending her new card offers! Her wealthy boyfriend who pays for her rent also leases and rents, and has no actual assets to speak of. I have to wonder how many people in the US live like that; seems like a setup for "The Big Short 2.0".

[Thats_that]

Yabbit my 401K be fat as a he'll, so we can thank the admin for that inflation right? 🤷‍♂️

[evv]

The fear monger if is obnoxious. Egregious. Get a new stick

[Kolt]

Don’t listen to this morris guy. Lost money listening to his investment advice

[davidlyon]

Old news. Did you just figure that out?