The objective of saving money is on the minds of every individual but the most difficult part is figuring out how to do it. The economy is continuing its struggle, and quite a few Americans are unable to set aside some money for the future. This job is particularly difficult for the millennial’s who are facing an uphill battle because of the tougher job market and huge student-loan bills.
In order to have more money in a savings account means cutting back on unwanted expenses. However, it still isn’t enough to make it possible for you to be in the clear. We decided to investigate further to understand how much people are managing to save within the United States, and our investigations revealed some surprising information.
While some people are accustomed to saving the others are required to work a little harder in order to build the habit. Our investigations revealed that a large number of Americans had little or no savings at all. Even the people that had no difficulties with saving earlier were setting aside less money presently than they did in the previous years. Now let us look at some of the figures we have uncovered.
Good health is not something we can buy. However, it can be an extremely valuable savings account. Anne Wilson Schaef
The Average American Savings For The Majority Is Zero
A staggering number of Americans have no cash within their accounts to fall back upon in times of difficulties. 26% among the adults have not set aside money for emergencies, and another 36% has yet to begin saving for retirement.
The Average Balance In Bank Accounts
Even as millions of Americans are living without any savings some have managed to set aside a few dollars within their checking account. The average balance in bank accounts is presently hovering around the $4500 mark.
What Is The Rate of Personal Savings Within The US?
The rate of personal savings within the US has declined from 10.5% in 2012 and is presently below 4.4%. The rate of personal savings is calculated as the average earning’s people within the country are setting aside for a rainy day. The decline in the figures is proving that people are not providing significant attention to the matter of saving money.
Adults Without Bank Accounts
Setting aside money is a challenging task by itself but having no bank account makes the task even more difficult. Approximately 8% of American households do not have a bank account. When calculated in terms of the population of the country the figure amounts to over 10 million households, which are a staggering number.
Lack of Savings Is Making Americans To Live By the Paycheck
Approximately 40 million households within America are spending every dollar from their paycheck. The matter becomes even more surprising when it is considered that most of these households earn an income of around $45,000, which is a figure that is above the federal poverty level. It clearly indicates that people can save money if they begin to make an attempt, but for some reasons are not doing so and leaving themselves exposed to unwanted trouble.
The Top Savers Of The Country
When the matter relates to saving money it is the baby boomers that are leading the way. The population in the age group of 55 and above have a positive rate of personal savings, which is in the region of 13%.
The Worst Savers Within The Country
It is the younger generation and the individuals who are in the age group of 35 and below that have a rate of personal savings, which is in the region of -2%. These individuals are burdened with student loans and lower wages, which are offered making it impossible for them to save anything at all.
The figures spoken about do not provide any evidence that Americans have a positive attitude towards savings or perhaps the economic downturn and personal indulgences are making it difficult for them to safeguard themselves against economic disasters.
Do not leave yourself or your family unprotected against financial storms… Build up savings. Ezra Taft Benson
Financial experts do not have a definite figure for how much you need to save to safeguard against emergencies. However, they all agree that a cushion needs to be created in the form of an emergency cash buffer. If the current figures are considered it can be confirmed that most Americans do not have adequate protection for themselves, particularly for instances of acute emergencies. The figures are definitely not positive but there is no reason why Americans cannot cut backward on certain expenditure and build for themselves a cash buffer which they can fall back upon.