Working Americans Not Saving Enough, Survey Finds!
Recent surveys show a troubling trend whereby the percentage of Americans who are not saving money is gradually increasing. Latest polls show that 20 - 21%t of Americans are not saving money.
The most significant factor in saving money is one's income. While almost half of working adults are saving not more than 10% of their earnings, around 15% of Americans report saving at least 15% of their yearly income. Lower-income families tend not to save anything, while more than 90% of wealthier Americans save money. Also, older Americans (55+) are saving more than the average American at a rate of 10% or more.
Why aren't working Americans saving anything at all?
Many Americans are not saving money due to their low income or expenses. For example, those with a lot of student debt or other debts often do not save anything. Low-income families (especially those with incomes less than $30,000 per year) are not saving in large part due to lack of income.
Surprisingly, almost 20% of respondents are not saving money because they ''have not gotten around to it''. This is not good since they can save but have not done so.
How much does the average American have in savings for retirement?
The median savings balance across American households is $4,830. This is below the average of almost $16,000, which shows that there are Americans with far more in savings, but half or more have less than $5,000 saved. To this point, 69% of Americans report having less than $1,000 saved, and a scary 39% report no savings at all!
What's the biggest reason Americans aren't saving more money?
The number one reason is low income, with almost 40% of Americans citing this reason for their inability to save money.
How much should Americans save?
This is no simple answer as setting a percent is misleading. If you have a high income, 10% may be more than enough, but with a low income, it may not be enough. The other significant variable is what do you plan to do in your retirement? Do you wish to travel or do more expensive activities? If so, your percentage may need to be higher than others.
How can you save more money?
The younger you are and start saving the easier it is over your lifetime. If you start saving at age 23 you only have to save about $14.00 a day to be a millionaire by age 67. This is assuming a 6% average annual investment return.
Even if you have lower income setting aside $30 a month ($1 a day) adds up to more than $1,000 in 3 years. This 'isn't going to make a huge retirement fund, but will help you cover emergency expenses. More importantly, all Americans should develop the savings habit. Anyone can form this habit if they focus on it and commit to a plan, no matter how small.
How to manage a financial crisis without emergency funds
If you don’t have adequate savings to meet an emergency expense, you might be thinking about what options you have to cover this unexpected cost. Taking out an emergency payday loan is an excellent alternative for you. Online lenders are an excellent source to start researching and comparing payday loan rates.
An online payday loan is a short-term loan that usually needs to be repaid by your upcoming payday. It is an unsecured form of loan that can be accessed quickly, even by individuals with bad credit. Payday loans can be accessed by people who require emergency funds, or by individuals who can’t qualify for traditional loans. This is the reason why payday loans typically have a higher annual percentage rate (APR).
Are you eligible for an emergency payday loan online?
Any individual, above 18 years of age, having a monthly salary, and an active bank account can qualify for the payday loan. Emergency payday loans are also available as bad credit payday loans for people with a bad credit history. The cash is transferred into your checking account within a few hours or one business day, making access to the fast cash loan very convenient.
The hassle-free method of requesting payday loans and their quick disbursement is what makes these emergency cash loans unique.
Set a budget and know exactly what and where you spend money will go a long way to building your savings account. Saving is a habit if done well.
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