The number of Americans who are actually putting money into a nest egg or savings account is increasing. That’s because they are scared that they might not have later on to live a much more comfortable life upon retirement.
They are also apprehensive that they might not have funds to draw on in case of an emergency like sudden unemployment, an illness that leads to medical expenses, the economic fallout of a divorce, or the death and/or departure of a co-income provider in the family. According to CNN, 31 out of 100 Americans have surplus cash stashed for six months. That’s a slight but noticeable increase compared to 28 out of 100 Americans in 2016 and 22 out of 100 in 2015.
Two groups tend to save the most and frequently. The first are middle-class Gen-Xers who earn more than and thus can save more. Their weathering several economic crises the past few decades has taught them the advantages of saving money. The other group is the younger batch of millennials who are now in their early to middle 20s. Unlike their older siblings, at this stage in their lives, they still have lower living expenses; add to that is a distaste for debt and a less consumer-driven lifestyle.
On the other hand, the CNN report says that about 25 percent of Americans have not tucked away a single dollar at all, either in a bank account or a retirement plan. That’s because saving in itself is a habit that does not come automatically but must be developed. Here are some tips to follow to ensure a solid, safe savings account that can serve as a strong shield during rainy days.
First, automate your bank accounts through banking tools and other apps that immediately send part of your income into a different savings account. This neutralizes any attempt or a sudden urge to dip into the regular account for spontaneous shopping.
Second, as MarketWatch advises, check if your employer if he has a retirement or savings plan as part of his incentive for loyal staff. The amount that goes into that plan is automatically deducted from your pay. Another option is to check with the local government itself if they have to have that kind of a financial program. Many states are studying this option as a response to their retirement-ready constituents who are worried about their future.
Finally, according to CNBC, exercise fiscal discipline. Don’t spend more than you can afford. Don’t max out your credit card. Cut down on unnecessary expenses and learn to live with less.
Cosmos Price Forecast After ATOM Shoots Into Top 20
Cosmos price is recovering due to the general demand for altcoins. In fact, a closer look at CoinMarketCap shows that...
Post-COVID-19, Business Risk Assessments Look Different for Investors
When conducting a business risk assessment, investors dig deeply into a company’s inner workings to predict whether it will be...
Encomenda Invests €200,000 to Launch Telemedicine Startup Doctomatic
The fund led by Carlos Blanco and Oriol Juncosa has helped launch this new digital platform, called Doctomatic, for remote...
Burkina Faso: The European Investment Bank Strengthens its Partnership with CAPE
According to the Director-General of CAPE Burkina, the support of the EIB is one of the major factors that has...
The First Four Projects of the Civic Crowdfunding of Venice Were Launched
The first four civic crowdfunding projects in Venice were launched. The project "ONDEW - Let's face climate change together", is...
Cannabis2 weeks ago
Are Cannabis Social Clubs in Barcelona on the Verge of Closure
Africa2 weeks ago
Energy Efficiency: the Moroccan Ministry of Housing Gets up to Standards
Featured2 weeks ago
Should You be Looking for Reasons to Sell the Stock Market
Crypto2 weeks ago
Coinbase Pro Accidentally Relists the Troubled XRP