A Range of Savings
Study finds almost 50 percent of Americans are saving five percent or less of their income.
According to a new study from Bankrate.com, about 50 percent of Americans are only saving five percent or less of their annual income. Worse than that, the same report showed that about 18 percent of Americans aren't saving anything at all. The good news from this report? Middle class Americans have got the savings thing down pat.
Bankrate's survey found that middle class Americans are the best savers. About 35 percent of those households with an annual income of between $50,000 and $74,999 are saving more than 10 percent of their pay. That savings rate is higher than it is even among those in the highest income bracket. Another bright spot for Americans was that overall, financial situations are improving. Of those polled, 29 percent said their financial situation has improved since last year, while only 18 percent reported it had worsened.
If you're one of those people who are saving five percent of less of their annual income, you need to work on increasing those amounts. The suggested amount of savings is 10 to 15 percent or more; depending on how old you are when you start to save and what you estimate your costs in retirement will look like. If you find yourself unable to get close to that 15 percent mark, try socking away any financial windfalls, like a tax refund or birthday cash. Also, try using generic products and food instead of name brands and then save any extra cash that is gained. Or, you could hold a yard sale to sell off anything you don't need or use. Spring just happens to be the season for those as well.
Article was written by Chris O'Shea and provided by SavvyMoney®.