Most Low Income Families Waste 40% of Their Paychecks on This!
One would expect people with a lot of money to spend a great deal of money on luxury items. But according to Deutsche Bank Research, even poor people spend up to 40 percent of their income on luxury goods.
The difference between rich people and poor people
According to research, here is how U.S. families spend their paychecks.
- High income households: spend around 65% of their incomes on luxury goods and 35% on necessities.
- Middle-income households: spend 50% on luxuries and 50% on necessities.
- Low-income households: spend 40% on luxuries and 60% on necessities.
According to Dr. Boyce D. Watkins, a well-respecd black author, economist, political analyst, and social commentator, African Americans lead the pack in spending on luxury goods at a percentage of 50-60 percent.
Watkins, formerly a member of the finance faculty at Syracuse University, has appeared on CNN,Good Morning America, MSNBC, Fox News, BET, NPR, Essence Magazine, USA Today, ESPN, The Tom Joyner Morning Show, and CBS Sports.
Watkins, who holds a Ph.D in finance, advises low income people to use their money wisely as a tool, not as a cause for stress. He also advises them to diversity their investments -- don't put all your eggs in one basket.
He refers to former NFL running back Clinton Portis who had a strong desire to commit murder after entrusting his fortune to investors who helped drive him into bankruptcy, after losing almost $11 million to financial advisors.
For more details about Dr. Boyce Watkins, visit www.boycewatkins.com