Bankrate.com recently published some eye opening statistics regarding how much individuals are saving out of their earnings, here are a few highlights:
About half of all American’s save less than 5% of their income and a total of 18% save nothing. While 25% are saving at least 10% of their earnings and 1 out of 7 are saving more than 15%.
This isn’t enough…
According to Bankrate.com American’s should have a target of at least 15% of their income going directly into a savings account.
So what can be done to get more people saving more money?
Reducing expenses and accounting for savings as any other expense in your budget can help you better prepare and avoid spending that money elsewhere. It can also help to have your savings amount automatically deducted from your account in a means to get you used to considering that money untouchable right away. If you’re one of the 18% not saving any of your money start with a percent that you are comfortable with and keep increasing that amount as you become more comfortable with your finances. Most experts will agree that any savings is better than none.
For more information you can read the original article in full at Bankrate.com/americas-best-savers-are-not-the-wealthy
Like many things, simply making it a habit to save can mean the difference between having enough saved for either retirement or emergency situations or needing to scramble to either come up with enough cash or borrow money. If you end up borrowing to cover emergency expenses you’ll only find yourself further in the debt since you’ll be paying interest back and losing valuable time when you could have been saving money.
If you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.