Find out how much six-figure earners are socking away in savings, and which generation is best at putting money away.
When it comes to saving money, an alarming number of Americans like to live on the edge and flirt with danger.
According to a new survey from GOBankingRates, 69 percent of Americans have little to no money in savings — in fact, less than $1,000.
Having no financial cushion is risky. A few unexpected expenses have the potential to spell financial ruin.
The GOBankingRates study, which is based on a survey of more than 7,000 people, also found that many Americans have embarrassingly little money saved, regardless of what they’re earning. New York-based certified financial planner Michael Hardy tells GOBankingRates:
“It doesn’t matter if they are making $30,000 per year or $300,000 — people don’t seem to know how to spend less than they make.”
One of the primary reasons Americans are behind on saving is because they are living beyond their means. After all, keeping up with the Joneses often comes with a heavy price tag, according to GOBankingRates.
Brandon Hayes, a CFP and vice president of oXYGen Financial, tells GOBankingRates that nearly half of millennials (46 percent) feel pressure to spend money after seeing posts on social media. He says:
“It has caused people to try and keep up with those in higher income brackets when they have no right to. This common in-your-face knowledge of what everyone else is buying, making and doing creates unnecessary stress and urgency to keep up with people financially, instead of focusing on establishing proper savings habits for your family.”
Here are some other survey highlights:
- While 34 percent of Americans have no money in savings and another 35 percent have less than $1,000, just 15 percent of Americans have $10,000 or more socked away for a rainy day.
- Senior citizens age 65 and older are the best savers, with 1 in 4 seniors reporting a savings account balance of more than $10,000. Just 8 percent of millennials can say the same. Of course, seniors have had much longer to save.
- Women (42 percent) are more likely than men (28 percent) to have no savings.
Are you surprised at how little money most Americans have set aside? Share your comments below or on our Facebook page.