If you doubt that America has a problem with spending and saving, just take a look at the facts below:
According to an August 2016 survey of 7,052 people by the financial-services site GoBankingRates, nearly 70% of the people surveyed had less than $1,000 in savings. Breaking the survey data down a bit further, we find that 34% of Americans don't have a dime in their savings account, while another 35% have less than $1,000. Of the remaining survey-takers, 11% have between $1,000 and $4,999, 4% have between $5,000 and $9,999, and 15% have more than $10,000.
No income group did particularly well. Some 29% of adults earning more than $150,000 a year, and 44% making between $100,000 and $149,999, had less than $1,000 in savings. Comparatively, 73% of the lowest income adults (those earnings $24,999 or less annually) had less than $1,000 in their savings account.
The St. Louis Federal Reserve releases data on personal household savings rates. In July 2016, the personal savings rate was just 5.7% - the recommendation is to save between 10% and 15% of your annual income. Comparatively, personal savings rates in the U.S. 50 years ago were double where they are today, and nearly all developed countries have a higher personal savings rate than the United States.
Welcome to Money Manna a new blog by Bob Deal CPA, PFS. This blog is inspired by the amazing figures regarding the lack of savings (retirement and otherwise) by individuals and families all over the nation. It is also inspired by my work with families who struggle daily with "making ends meet." If I can help change just 1 or 2 peoples financial lives, then this will have been a success.