Are You Saving As Much As The Average American?

July 19, 2024 By: Stephanie H. - CreditMonarch Online Writer0 comments

Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

Saving money is more important than ever due to high interest rates, rising cost of living, and other financial challenges. The ability to save is being viewed as a luxury by many Americans. Most financial experts agree that individuals should have at least 6-12 months of savings in their account in the event of an emergency. The emergency fund does not contain money for special purposes, like a college fund, retirement account, or a down payment on a home. Depending on your income and expenses, that will determine the exact savings amount you should have.

Smart financial management requires saving money, but not many people have the skill to do it effectively. Starting a savings plan is crucial from the start of your employment and should continue until retirement. Savings account balances can vary depending on factors like age, purpose of funds, income level, cost of living, lifestyle, risk appetite, and other financial priorities. Federal Reserve data shows that the majority of Americans don’t have enough money saved up. According to the Federal Reserve’s most recent Survey of Consumer Finances, the median savings account balance for all families was $8,000 in 2022. If you want to get the most out of your savings and the factors that are influencing the average savings see how below.

How to Get the Most Out of Your Savings:

• Track Your Income
• Follow a Budget
• Create Separate Accounts
• Earn More Money
• Automate Your Savings
• Consolidate Debt
• Speak With a Financial Professional

Factors Influencing Average Savings:

• Economic conditions
• Interest rates
• Debt
• Cultural and psychological factors

If you are currently struggling with some credit card debt and have a large balance, prioritize paying it off as soon as possible. The more time you spend on paying off a balance, the more money it will cost you. We highly recommend opting in for a balance transfer credit card in hard times like these. Balance transfer credit cards will help you pay off your credit card debt if you are struggling financially and allow you to save money in which you can add to your savings.

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• Balance Transfer