7 Facts About Saving Money
Everyone recognizes the importance of saving money. But is everyone actually saving money? That’s quite a different story.
In the United States, about 58% of people have under $5,000 in their savings accounts. It seems like a high number, but in reality, 42% say they have less than $1,000 in savings.
That means that they may have trouble covering not just unexpected expenses but often monthly bills as well. So just how vital is maintaining a healthy savings account anyway? Here are seven important facts about saving money to keep in mind.
7 Important Facts About Saving Money
1. A Good Way To Increase Savings Is By Cutting Spending
Yes, taking savings out of a regular income stream is probably the easiest approach, especially if the savings are automated. But an approach that’s doubly beneficial — and one of our top facts about saving money — is that you can find ways to increase your savings and reduce spending at the same time.
Look through your budget for areas to cut back on, probably in the “wants” section of your list of expenditures and use that money instead to strengthen your savings account, especially in an emergency fund.
2. A Remarkably Low 6% Of Americans Have Over $50,000 In Savings
The average American household has fewer savings than they need to live comfortably in retirement, cover an emergency expense, or make up for losses that occur through unemployment. According to one survey, 45% of Americans say they have absolutely no money saved at all.
3. Retirement Savings Plans Are a Must
One of the facts about saving money that has not changed over time is the importance of retirement plans. Next to traditional savings accounts, retirement plans are the most common form of savings in America.
Those who have a 401(k) (about 54%) tend to have a lot in them. The average is about $106,000.
4. Those With The Lowest Amount In Savings Are Young People
By the time the average person hits 35, they’re most likely to have savings of around $3,500, far less than other ages, such as those 35-44 years old ($4,700) and 45 to 54 years old (6,300). Those with the highest average savings are people over 75 with an average of $9,300 in savings.
5. There Are Other Forms Of Savings To Consider
While savings accounts and retirement plans are more popular, one of the most overlooked facts about saving money is that other forms of savings may be better for your current financial needs and future goals. Often, savings accounts that are online have better interest rates.
Another possibility is a money market account, which can also be used as a checking account and is often about double a traditional savings account’s interest rate. The drawback is a relatively high minimum deposit, usually in the $1,000 range, that’s required to open the account.
6. Savings Are A Key To Financial Freedom
This is one of the facts about saving money that you should always keep in mind. Even if your financial goals at the moment do not include saving up for major purchases, maintaining a savings account and an emergency fund now will be highly beneficial later.
You may have children and need to pay for their education. You may need to move and look for a new apartment or home. You may want to get a new car. Without savings, you won’t have the financial flexibility you crave.
7. Target Saving Between 10%-20% Of Your Monthly Income
While there isn’t a one-size-fits-all number to save each month, it’s generally advised to save between 10% and 20% of your income if that is possible. If not, saving anything — even just $50 or $100 a month — is preferred to not saving anything at all.
A Title Loan May Help With A Financial Emergency
Financial emergencies such as an unexpected trip to the hospital, much-needed car, and home repairs, or last-minute travel can happen unexpectedly. It’s a situation made even more difficult if you have no savings to fall back on.
A title loan is designed to help those facing such emergencies and those who qualify can receive a title loan of up to $15,000 at Texas Car Title and Payday Loan Services, Inc.
The best part: qualifying can take as little as 30 minutes. When you’re in the middle of a financial emergency, that timing can be immediately helpful — or necessary.
It’s easy to get started. Fill out the short title loan form on our homepage. Soon after it’s submitted, one of our loan representatives will give you a call to talk about the few required items and walk you through the rest of the process, which includes a quick vehicle inspection either at one of our locations or at the place of your choice — even your own home.
Once approved, you’ll get your cash either that same day or the following business day.
Get Started Today!
Saving money should always be a priority if it’s possible. But if it hasn’t been a priority in the past and you’ve encountered a financial emergency, consider a title loan for fast convenient assistance.
To get started today, go online, give us a call, or visit one of our locations near you. Our Texas Car Title and Payday Loan Services, Inc. representatives are waiting to help you today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.