7 Facts About Saving Money

Saving money is an essential step toward achieving financial stability, but with the rising cost of living, it's easy to feel overwhelmed. In fact, 58% of Americans have less than $5,000 in savings, and 42% have under $1,000. With these challenges, building a robust savings account becomes crucial. In this article, we’ll dive into seven basicl facts about saving money and explore how a title loan can be a vital tool when facing unexpected financial emergencies.

1. Increase Savings by Cutting Unnecessary 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. This approach not only helps you save but also prepares you for unforeseen circumstances like urgent medical bills or home repairs. For situations where immediate cash is required, a title loan can bridge the gap until your savings catch up.

2. Most Americans Have Less Savings Than They Need

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.

In case of sudden financial stress, a title loan could provide fast relief, allowing you to handle emergencies without derailing your savings plan.

3. Prioritize Retirement Savings Plans

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.

However, if you face immediate financial trouble and need fast cash, a title loan might be a good short-term solution to avoid dipping into retirement savings prematurely.

4. Young Adults Have the Least Savings

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.

For younger adults just starting out, unexpected expenses can be more disruptive. In such cases, a title loan can help cover costs without depleting your limited savings.

5. Explore Different Types of Savings Accounts

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. 

However, if you're in a pinch and need immediate cash, a title loan is an efficient way to access funds, especially if you haven’t yet built up substantial savings in these accounts.

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. Save 10%-20% of Your Income, If Possible

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.

How a Title Loan Can Help in Emergencies

A title loan can be a valuable resource if you face a financial emergency, such as unexpected medical bills or urgent repairs. Texas Car Title and Payday Loan Services, Inc. offers title loans up to $15,000, with a simple application process that can be completed in as little as 30 minutes. The process includes a quick vehicle inspection, and funds can be received the 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.