7 Reasons Why Americans Don’t Save Money
Ever wondered why American’s don’t save money? The honest truth is because they don’t have the money to save. This is sad, but it’s true that less than 28% of Americans are considered to be financially healthy. This is according to the Center for Financial Innovation. Here is the link to their complete report. Spoiler alert! The report is over 80 pages long! But it is jammed pack with some great information.
Why Americans Don’t Save Money
- Income has not increased. Because people are not getting raises like they used to it has become increasing harder to save.
- Student Loan Debt. Student loan debt is supposed to be the next bubble that pops. With the amount of student loan debt raising to the six-figure level for some students, it has become increasing more difficult for people to pay.
- Credit Card Debt. According to data reported by the Federal Reserve for Outstanding Revolving Debt the average credit card debt for the American household is $9,333. The number is highest for people in their 50’s. It seems as if things have to get worse before they get better.
- Instability in the Work Place. Currently it is the beginning of 2019 and it doesn’t look as if the economy is getting any better under the current U.S. President. This has caused companies to begin laying off workers. This increased instability is making it even harder for people to save. Couple that with the hole that folks may have fallen into during the government shutdown and it makes matters worse. It will take some people months or even years to build up their savings.
- High Cost of Living. That’s right like Jimmy McMillan has stated in the past, The Rent is Too Damn High! The cost of living has cause more and more people to have more month left than they have money. This is a serious issue.
- Bad Credit Score Means They Pay More. If you miss one credit card payment it can cause your credit score to drop. And when your credit score is low you pay more for everything. Your finance charges and interest rates go through the roof. This makes it more difficult to pay off debt because you’re paying more for the same debt that someone with a good credit score has to pay.
- Strained Budget. Most Americans are upside down with their monthly budget and the only way to get right side up is by either cutting down or bringing in more. And most people don’t want the pain of having to endure either one of those options. I say find something to do that is your passion and find a way to turn your passion into profit.
These are just a few of the reasons why Americans don’t save money. But I’m sure there are more. If you have some reasons that you would like to add, please leave them in the comments section below.
How Can You Start Saving?
- Cancel Cable (Most cable bills are ridiculous, get a Ruko box instead)
- Sell Your Stuff on Ebay
- Learn How to Sew (And save money on clothes)
- Eat Less
- Cancel Gym Membership (Especially if you don’t go to the gym)
- Prepare Your Meals Instead of Buying Out
- Move to a Cheaper Place and Save Money on Rent
Making some minor adjustments to your budget can definitely help you find the money that you need in order to be able to save so you too can have enough money to retire.