A CNBC report recently disclosed dismal financial news regarding most Americans.
Americans and Saving Money
Unfortunately, the recent economic gains are not prompting the majority of Americans to save considerable amounts of their earnings. A new Bankrate survey affirms that 20% of people in the U.S. fail to save any of their money. Furthermore, an additional 16% of Americans save more than 15% of capital, whilst 25% save 6-10%. Another 21% of people put aside 5% of their earnings.
Pitfalls of Failing to Save Money
The upsides of saving capital are well documented, especially in this day and age. Many Americans save money in case of a rainy day, for taxes, and other expenses which may present themselves. Saving funds also provide a sense of security. In most cases, working people are recommended to having six months to one year’s worth of savings in case of dearth, although many Americans have a ways to go before reaching this milestone.
CNBC moreover cites living expenses as one of the reasons behind the lack of savings. In other words, many Americans are not earning enough capital to put reasonable percentages aside. This reality can be very problematic, especially in the case of retirement.
