Ever wanted to know more about how others are saving money? Here are nine surprising facts about saving that will hopefully inspire you to invest more in your financial security!
Most Americans Aren’t Saving at All
Roughly 45% of Americans have no savings account. That’s a grim statistic, considering how important having at least an emergency fund is! Be a part of the 55%, even if it’s only a small amount each month.
And the Ones Who Aren’t Saving Very Much
58% of Americans have less than $5,000 in savings. And while we’re all about saving, no matter how much or little you contribute to your account, an emergency could easily wipe out that amount.
Thirty-Somethings Are Doing Their Darndest
The average 35-year-old in America has saved roughly $13,000. Not bad, all things considered, but most financial advisors would suggest you have way more than this saved by this age just for retirement, let alone for emergencies and general savings.
Things Are Looking Up
Saving money is becoming more in vogue by the year. The average household in 2020 had the highest savings rate in nearly sixty years at 16.3% of income. While that number understandably fluctuates each year, it shows that people realize the value of saving for their future.
The 50/30/20 Rule Is Catching On
The 50/30/20 rule is a popular way to save money. It suggests you spend 50% of your income on needs, 30% on wants, and the last 20% should go toward savings. There’s obviously some room for customization here. Still, it’s not a bad starting point if you’re new to saving, and it’s easy to remember.
Most People Aren’t Ready for Emergencies
A shocking number of people don’t have the funds to cover an emergency. Over 30% of people said an emergency happened that they couldn’t afford within the past year. So remember to put some money aside in those emergency funds so you aren’t toppled by the unexpected.
Credit Card Debt Is a Thing
If you have credit card debt, you’re in good company; roughly half the country has some amount of credit card debt they wrestle with. But just because it’s common doesn’t make it good. The more you focus on paying off debt, the easier it is to save!
Budgeting Is Trendy
Over 75% of people have a budget that helps them achieve their financial goals. Even if you can’t save as much as you’d like, budgeting can help you become more financially independent so you can start building your savings account down the line.
Over Half the Country Lives Paycheck to Paycheck
If we’re being honest here, there’s a reason why saving can be so hard for some. A large portion of Americans live paycheck-to-paycheck, meaning that they wouldn’t have the funds to cover their expenses if they lost their jobs tomorrow.
Even the top earners, who make more than $100,000 a year, are in the 25-30% range in a given month.
