Uhhh...Study finds median wealth for single black women at $5

What does that even mean?

 

"That means half of [black women] have a net worth of more than $100 and half have a net worth of less than $100," Ms. Lui said. "So that gives you an idea of how far in debt some women of color are."

The article gives both a $5 and $100 dollar values for working age single black women.

So, whatever, they are really poor as a group.

 

If a black woman says she's got five on it, it's her life savings.

 

I get that, but $5? That's worse than many third world countries.

 

I would assume that it means they might have a job that allows them to pay the rent and eat, but they have virtually no savings and/or a lot of debt.

 

and what is the mean, $100? i have no doubt that black women as a group are grotesquely poor compared to white women, black men, or white men, but i have trouble believing half of black women are worth less than $5.

 

Why, because it doesn't feel truthy?

Good 'ol Repub position. If it feels right, then do it. Facts just get in the way.

 

I blame whitey. :grin:

 

"Five dollars. I think I'll go to the Movies. By myself. And thank you too, Mr. Mortimer."

 

I'm a skeptic by disposition myself, but I find it funny that someone who takes the most transparent ideological spin at face value would suddenly become incredulous when it comes to the depths of poverty in which black women find themselves.

 

http://en.wikipedia.org/wiki/Net_worth

Someone can make $250,000 a year, but if they are $1 million in debt, they are going to have a negative net worth. It's not that hard to figure out how someone can have a net worth so low.

 

I highly recommend "The Millionaire Next Door" for anyone interested in learning more about net worth. It explains Net Worth very well, plus Its really eye-opening. Most millionaires never made more than $150K a year in their life & 88% are first generation wealthy. They just spend less and save more - buy used cars etc.

Many people that "Look Rich" by driving nice cars, living in big houses, etc..have LOW or Negative net worths due to their spending habits, debt and lack of savings.

So, that snotty guy in the Mercedes may be worth nothing, while that Older guy in the beat up pickup might be worth a million. Interesting stuff.


There are many, many people that make over 200K a year, but will never be millionaires because of their financial habits, but there are some people making less than 75K a year who are on their way to being millionaires, its crazy interesting stuff.

 

I like how the guy from Dallas is talking about smart credit management. =]

 

That's all true...but if both die in a head-on crash with each other at age 45, who will have had more fun until then?

 

Wouldn't this be illogical considering your ability to take on x amount of debt depends on your net worth to begin with?

 

Guess that explains the subprime statistic?

 

Your life expectancy is 73...you can expect to live until then.

Heck, under your logic, you might die tomorrow, so why not charge everything up to your credit limit?

Besides, under my logic...the OP is young. If he saves, he could be out of debt and have money for a nice downpayment by the time he's 28 or so. He'd have a very nice debt free life with a payed for house before he was 45 anyway.

I never said don't have fun, just to live financially responsible.

The House Warren Buffet currently lives in...he bought for under 32K in 1958. Sure it might be worth a million or so now..but he's the 3rd richest man in the world - and most NBA players live in homes worth that costs lots more money yet they don't make anywhere near what Buffet makes (and most end up broke 5yrs after retiring)

Actually, there are many, many people that make a lot less money than most NBA players, yet they are worth lots more - and they WONT be bankrupt after they retire..in many cases, their worth never changes after they retire.

 

Not if you are talking FICO score. It doesn't look at Net Worth at all.

from wiki:

http://en.wikipedia.org/wiki/Credit_score_(United_States)

Makeup of the credit score


The approximate makeup of the FICO score used by U.S. lenders
Credit scores are designed to measure the risk of default by taking into account various factors in a person's financial history. Although the exact formulas for calculating credit scores are closely-guarded secrets, FICO has disclosed the following components and the approximate weighted contribution of each: [10]
35% — Payment History – Late payments on bills, such as a mortgage, credit card or automobile loan, can cause a consumer’s FICO score to drop. Paying bills as agreed over time will improve a consumer’s FICO score.[11]
30% — Credit Utilization - The ratio of current revolving debt (such as credit card balances) to the total available revolving credit (credit limits). Consumers can improve their FICO scores by paying off debt and lowering their utilization ratio.[12] The closing of existing revolving accounts will typically adversely affect this ratio and therefore have a negative impact on their FICO score.
15% — Length of Credit History – As consumer’s credit history ages, assuming they pay their bills, it can have a positive impact on their FICO score.[13]
10% — Types of Credit Used (installment, revolving, consumer finance) – Consumers can benefit by having a history of managing different types of credit.[14]
10% — Recent search for credit and/or amount of credit obtained recently - Multiple credit inquiries for a consumer seeking to open new credit, such as credit cards, retail store accounts, and personal loans, can hurt an individual’s score. Applying for lots of new credit in a short period of time is also viewed as risky and can cause a drop in an individual’s score. However, individuals shopping for a mortgage or auto loan over a short period will likely not experience a decrease in their scores as a result of these types of inquiries.[15]

 

haha...actually, I'm from Houston..grew up in Pine Trails, or affectionately called Crime Trails - and I've NEVER lived in Dallas. I'm in Ft. Worth..there is a huge difference as FW is much more blue collar and similar in makeup to Houston.