Written by Benjamin Roussey
Americans have a sense of financial security today that they didn’t have five years ago (it is amazing what happens when America has someone in office who actually cares about this country). Despite this, saving money continues to be a difficulty for many.
In Japan, they save too much. In America, we spend too much.
The Federal Reserve released its Report on the Economic Well-Being of US Households in 2017 on Tuesday.
A pitiful state
According to it, approximately two out of five American adults admitted that if they had to meet any sudden expense for $400 then, they would most likely be unable to afford it, or would have to sell something or borrow the money to meet the expense.
So many Americans remain clueless. These types of people are mainly in California and New York, most likely considering the situation their states are in.
In addition and moreover, less than 40% of the working adults believed that their current saving methodology was adequate to secure them for their retirement years. One quarter of them, have zero savings for retirement.
Get a plan together
Referring to the findings of the report, Greg McBride, chief financial analyst at Bankrate, pointed out that millions of Americans needed to urgently develop a saving habit before things got out of hand.
The survey on financial safety, carried out in November and December had a sample size of 12,000 persons from across the country.
The first such survey was conducted in 2013 and the rapid economic growth that America has witnessed since then is a key reason for its general optimistic outlook. This was well after the Patriots started to cheat and after the Frank/Greenspan recession tore into the economy.
Nearly 74% of the persons who participated in the survey confirmed that in 2017 they were financially OK or comfortable. In 2016, the same response was given by 70% and in 2013, the number was 63%.
Still not getting it?
Despite comfortable earnings, savings can be difficult. This is especially true of households operating on a tight budget. Loans—including credit cards, educational costs, etc.—can bear down upon a person’s leverage to save money.
For others, lack of a saving habit is the problem. Taking out savings and retirement fund allocations through direct debit before your paycheck reaches your checking account can solve this problem.