Americans Aren't Saving Money Like They Used To 20 years ago |
Posted: September 11, 2017 |
Times, circumstances, and attitudes change. In the United States, perspectives on saving money have certainly changed and not necessarily for the better. People simply do not save money to the degree as was the case in the past. The choice not to save may bring forth unwanted consequences. Saving money supports fiscal health and the ability to handle emergencies. To retire comfortably is another benefit of saving money through life. A lack of interest in putting money away creates the potential to cause a lot of problems in life. Yet, Americans seem flippant about putting money away in safe investments. Maybe it is time for the average person to start rethinking attitudes towards saving money. Facts and Figures Studies show that Americans present a personal savings rate of about 3.6%, which is decidedly lower from amounts in the past. Factors contributing to this include low salaries and weak job growth. Clearly, a negative impact on earnings cuts down on the potential to save money. With less money available, less money can be saved. This should not, however, be used as a consistent excuse for not doing what is required to save money. The possibility of increasing earnings with, say, a side job could help overcome limitations. Ultimately, something must be done in order to improve savings or else troubling financial situation are sure to arise in the future. And the future might not be too far off. Controlling Spending Cutting down on expenditures can be a key means of increasing savings. Even if wages are stagnant, the potential to save money increases when spending is reduced. Leisure spending frequently appears to be a culprit when someone’s savings account is low. Not all overspending, however, is frivolous. Sometimes, people spend more on essentials than they should. Something as simple as auto insurance quotes comparison shopping could save a nice sum of money year after year. Yet, drivers do not always act in a frugal manner. Auto insurance is one necessity in which costs can be trimmed. Really, all necessities should be audited for where funds can be reduced without reducing quality. Emergency Situations Boosting earnings, cutting spending, and saving funds are tasks that should be done with a purpose in mind. Emergencies can arise. When they do, a nest egg of funds could prove incredibly helpful. In fact, saving upwards of three months worth of expenses is strongly advised by experts. Losing a job or being unable to work due to illness can cause major damage to one's finances. Without a safety net in place to cover expenses, borrowing becomes the only option. Incurring large debts at possibly high-interest rates could undermine financial stability for years. Saving money while in debt isn't exactly easy, either. Retirement Someday Arrives Emergency situations represent unexpected mishaps that might possibly arise. Retirement, however, should be expected and looked forward to. A word of warning from business insiders and economists has been directed towards millennials. Younger persons who fall into the trap of not saving early in life might discover retirement becomes difficult. People who don't save enough for retirement find themselves working very late in life. Comfort in one's golden years becomes more of a dream than a reality. The money simply isn't there. Again, a lack of savings contributes to such a situation. While warnings may be directed to millennials, at least young persons have more time to save. Those over the age of 40 might discover saving for retirement to be difficult. No matter how difficult savings at that stage of the game is, a concentrated effort to put money away must be done. Otherwise, retirement might be postponed until well past turning 70. Start Today Those worried about saving money should start putting cash away today. Those not concerned, well, they should probably start being concerned. Very little bad can come from saving money. A lot of trouble can arise from not doing so.
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