• Skip to primary navigation
  • Skip to content
  • Skip to primary sidebar
  • Skip to footer

Appetite For Investing

  • Home
  • About
    • Disclaimer
      • Copyright
      • Terms
      • Privacy
  • Blog
  • Categories
    • Make More
    • Save More
    • Invest More
    • Paying off Loans
    • Self Improvement
  • Recommendations
  • Tools
  • Create a Blog
  • Contact
    • Hire Me
    • Contact
    • Advertise
  • Facebook Ad Services

This is the Savings Rate in the United States

Leave a Comment

I may earn money or products from the companies mentioned in this post.

  • LinkedIn
  • Share
  • Pin
0shares

Savings Pin 3 e1567441413399 - This is the Savings Rate in the United States

 

It’s common knowledge at this point people in the United States aren’t well known for their savings.  We love buying the newest, shiniest thing whether that be cars, clothes, gadgets, etc.  And who could blame us?  New things are always nice.  What’s wrong with getting the newest PlayStation or clothes of the season?  Can’t wear the same shirt in pictures twice, that’s ridiculous.

 

Related posts:

  • 12 Ridiculously Easy Money Saving Tips For You to Try Today
  • Negotiate 11 Things You Never Imagined Possible
  • 71% of People Don’t Realize They Are Paying Fees in Their 401k Plan: Here’s How to Take Action
  • Prevent Yourself from Overspending: Open a Savings Account Today
  • Save Your Money and Quit Going to the Gym
  • The One Habit Eating Your Net Worth and How to Stop it Now

 

The Average Savings Rate in the United States

According to bea.gov, the personal savings rate for July 2019 was a meager 7.7%.  And that’s taking everything into account.  I mean savings for anything like a house, college, emergency fund, retirement, etc.  It’s recommended you save 10% of your salary each year for retirement.  I personally don’t think that’s even remotely close to enough, especially if people are wasting their money investing in bonds.

But if you’re not even meeting the annual recommended savings rate for retirement, you need to reprioritize your life.  It’s not about making dramatic sacrifices to your daily life.  It’s about looking at the excesses and how to modify your spending around them.  If you’re making $65,000 living in an expensive area, then maybe it’s worth considering taking a break from ordering out so frequently and hitting the happy hour every Thursday.

Choose cheaper forms of entertainment.  Even consider staying home once in a while.  How about instead of going to every single wedding you’re invited to, say no to most of them.  One of my friends went to literally 17 weddings last year.  Being generous, that’s at least $5,000 in gift money spent.  That’s not even including money spent on transportation, hotels, tips, etc.  It probably cost more like $12,000 if I’m being honest.  It’s a complete waste of money.

The very least you can do is max out your company’s 401k matching plan.  Usually, the norm is 50% up to 6%.  At least that’s still 1.7% better than the average in the country.  It’s not great, but it’s a start.

If you make $65,000 and do the bare minimum with the matching plan, this is what your retirement savings could look like if it were all in an S&P 500 index fund:

Screen Shot 2019 09 01 at 11.59.54 AM - This is the Savings Rate in the United States

 

 

 

Not bad for doing the bare minimum of a matching plan.  And yet, Americans all over the country spend their dollars living in the moment instead of preparing for their future.  Think about your future self if you want to make better decisions for your retirement situation.  Do you want to be living on social security if it even exists then or do you want to relax without worrying about money, doing whatever it is you want on any given day?  The latter sounds much better.

If you want to live a great life in retirement, it starts with what you’re doing today.  Take control of your spending and savings situation.  Learn what type of retirement plan is best for you.  Then increase your savings rate to at the very least 10% and if you can.  Between you and your significant other, make it 15%.

And calculate the rate of return based on your savings rate and average return.  If you’re in a target date fund, you’ll get nowhere near 10%.  Play it safe and base it off a 5% return.  This is because you’ll be invested in bonds, international stocks and who knows what else.  Chances are you’ll want to increase your savings rate once you see the final total.

 

 

 

Like what you read?

Join all of us to get the latest posts on how to make, save and invest more. It's the only way to your financial freedom. In addition, you get the FREE Coffee Habit Worksheet to track your minor spending and see how it's really costing you over the long-term.

Success! Now check your email to confirm your subscription.

There was an error submitting your subscription. Please try again.

No spam, don't worry about it. Powered by ConvertKit

Related posts:

  1. Prevent Yourself from Overspending: Open a Savings Account Today

Investing

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Search

Welcome

Welcome to Appetite for Investing. Check out the site to see how you can make extra cash, save it and invest it responsibly in the stock market without being swindled by a financial advisor. You don't need to be a victim of high fees and poor returns anymore.

Subscribe

Facebook Ad Services - This is the Savings Rate in the United States

Web Hosting

Coffee Habit Worksheet Tracker

Screen shot 2017 12 11 at 9.59.26 pm

Join all readers and access the FREE worksheet to start tracking where your money is really going.

Cool beans! Now you're ready for the latest posts to get you on your way to financial freedom.

There was an error submitting your subscription. Please try again.

No worries, no spam here. Powered by ConvertKit

Footer

get the latest posts

more info

  • About
  • Contact
  • Disclaimer
  • Email
  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter

© 2019 Appetite For Investing · Disclaimer · Site design by Swoon & Co. Creative

Do You Want to Become a Millionaire and Retire On Your Own Terms?
Join the rest of us to get the latest posts every week helping you learn to make, save and invest more. The sooner you begin, the easier lies the road ahead for your financial life.
You hate spam, I hate spam. Don't worry about it, no spam here.
Want To Gain Financial Freedom?
Join the rest of the readers to get the latest posts every week helping you learn to make more, save more and invest more. The sooner you begin, the easier lies the road ahead for your financial life.
You hate spam, I hate spam. Don't worry about it, no spam here.
I use cookies to ensure that I give you the best experience on the site. If you continue to use this site, you're cool with that.Ok