A recent survey by the American Savings Education Council indicated that Americans of all wage levels are having a hard time saving. Its seems that the old saying “you grow into your income” just might be true. The recent study as reported by CNBC shows that 31% of consumers have $0 non-retirement savings.
As adults there are so many things that we are suppose to save for. College, retirement, emergency fund, and other goal oriented funds all while being drawn in by 0% interest impulse offers for glitz and glamour electronics and automobiles. Of course, if your neighbor has one why shouldn’t you? You work hard and deserve it. It all seems to make sense at the time, but your putting your family’s financial well being in jeopardy with no emergency savings.
We really should be paying ourselves first. Perhaps rather than paying bills first, we focus on giving 10%, saving 10% and then manage the leftovers for living. For some, even this is a challenge, but for high-income earners with no savings this should be a way of life. Most of us want to pay our bills, but giving and saving first we are forced to take care of others and our own future. The desire to get the bills paid will motivate you to solve the remaining financial puzzle, which may involve making different spending choices.