Saving doesn’t have to be a difficult task. There are plenty of ways to siphon away cash from your income and force yourself into saving money. Financial advisors suggest that you start slow when it comes to cutting down your expenses on shopping and making expensive purchases. The key to kick-starting the saving mode is to realize that the amount set aside would become the financial security in the future. It isn’t advisable to take up bank loans for every purchase that you make since it increase your repayment burden. Instead, start saving to make the future purchases in cash.
Studies show that Americans have started preferring saving to spending, following the financial crisis in 2008. Since 2001, the gap between those who prefer saving and those who prefer spending have also increased.
Another poll reveals that individuals between the age group of 18 years and 29 years prefer spending to saving than those above 30 years. However, this trend has also shown a change in the last two years. Statistics have never favored Americans when it came to saving.
- 42% of Americans live paycheck to paycheck, including 25% of those who earn more than $100,000 a year!
- Over 30% Americans have less than $1,000 in savings
Business advisors claim that adults struggle with saving despite being aware of its necessity. Individuals claim that the excuse for not saving would be their student loans, or property rents. Another excuse would be the increasing standard of living in the country. In such a scenario, it isn’t surprising to note that majority of the Americans are unable to meet their savings goal. The savings situation is so terrible in the country that almost 60% Americans do not have the money to tackle unforeseen emergencies.
You don’t need a financial advisor to tell you that this is a bad situation to be in. You realize that the need of the hour is to save more money and save often. There will never be a good day to start working on your savings and so you will have to begin right now!
You must start being smart when it comes to money and here are some easy tricks to set your brain in the saving mode.
If you find it difficult to save alone, take the help of a financial expert, who will walk you through the process. It would be an investment for a better future. Forbes suggests linking with tools like Mint.com and YouNeedABudget.com, for added assistance. Whatever you decide, try and avoid setting the bar too high from the beginning. Achieve the goal, even if it is small, as this will provide further motivation for future successes.
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