According to a recent survey by GoBankingRates.com, 33% of Americans have $100 or less in their savings account going into 2023, and 34% had the same amount in their savings in 2022.
Most Americans do not have a major savings cushion to fall back on — and that’s consistent. According to GOBankingRates’ survey, 57% had less than $1,000 in their savings in both 2022 and 2023. Further, one-third of Americans had less than $100 in savings in both 2022 and 2023.
Ability to save does get affected by the higher cost of living in many American cities and high-priced suburbs. When families do the math for the month they have little to nothing left for savings after the essentials of living.
No matter what the situation is, there are ways to save. I always recommend saving in small amounts more frequently, allocating smaller amounts out of each paycheck rather than a big chunk out of one paycheck. Cutting back on discretionary spending and committing that cash to savings can add up fast; for example eating at home instead of dining out so often. And of course not trying to keep up with friends and neighbors who are probably in debt from living beyond their means.
When you are retired and the kids are off building their own lives it isn’t going to seem nearly so important that you had great furniture in your house or fabulous clothes in your closet. What’s going to be much more important is your ability to take care of yourself when the income faucet is turned off, and what you did with your life that was meaningful in terms of accomplishments; the time you spent being a good family member and community member.
Source of original article: https://www.gobankingrates.com/personal-finance/data-americans-savings/