Sacrifice and Save
We all have heard the story of saving for a rainy day or make sure you have an emergency reserve personally and/or within your business. The real deal is that most of us don’t have it. A recent survey said that 70% of Americans have less than $1,000 in their savings.
Calculate Your Savings Rate
A savings rate can be calculated for an economy as a whole or at the personal level. Knowing how much you can bring home relative to what you spend can give you a clearer idea of your financial situation and help you start saving. Here’s how you can calculate your own saving rate in five easy steps;
- Calculate your income for a specific period of time (i.e., one month).
- Calculate your spending for the same period.
- Subtract your spending from your income.
- Divide the number calculated in step three by your income.
- Multiply by 100.
Keep in mind that your income should be after taxes, or you risk over-estimating your savings.
|How much money do you have in your savings account?|
|Demographic||$0||Less than $1,000||$1,000-$4,999||$5,000-$9,999||$10,000-$19,999||$20,000-$49,999||$50,000 or more|
The importance of savings cannot be overlooked given the need for all of us to improve upon our financial wellness. The basis for savings begins with a budget, which thereby reflects in your credit by being patient and by planning accordingly. Then you will have some savings out of the income you earn. If you can glean from these principles, then the model will be created to begin the savings quest.
|What Obstacle(s) Are Keeping you From Saving More Money?|
|I’m living paycheck to paycheck||38.31%||26.70%|
|The Cost of living is high in my area||18.71%||20.91%|
|I have too much debt||14.92%||17.63%|
|I forget to put money into savings||6.24%||7.81%|
|I don’t know how to budget||7.35%||10.08%|
|My savings account earns a low-interest rate||9.58%||14.11%|