Did you know the recent savings rate was released by the government agency in charge of tracking this vital information, and I bet you already knew it is pretty low. How low do you ask, my financial smart friends? It is a pleasantly never reaching retirement figure of 5 percent. What is your personal savings rate?
What can you do with 5% in the future? It might cover the cost of gas, cable, and food but then that’s it. Who or what will help you pay for shelter, entertainment and any other fabulous budget categories we all cannot live without? If you say Social Security, I say bite your tongue right now.
Did you know that the earlier you start saving the sooner you will be done, and the sooner it will grow, and the less you will ultimately need? But you already knew this right?
The gift of savings is not important today, because tomorrow is not important, until someday it will be.- Rich Uncle EL
If you realize that savings of at least 20% is not only necessary but mandatory, you will save yourself from years of burden, regret and time sheets. Many of you will now say, what will you do with all that free time? Anything is better than forced work I say with conviction. Find something as you’re smart enough to fill a measly 8 hour time frame right?
The real issue is too much consumption I suppose because without all the shopping trips to Big Mart or Shop-mall I know we all can put away a good amount of money. What I tend to do is minimize my trips and exposure within any place that charges me money for being there. It is that simple, stay home use what you have, and then when you absolutely need food, go get it or grow it.
I believe my personal savings rate is somewhere around 23% and 37%, and if you work in the CIA you will know the exact figure, but till then I will leave it in that range.
Find some Creative Ways to Save More Money
Tweet ThisSee this Resource Below Stating the Facts about Average Savings Rate in America:
Personal saving — DPI less personal outlays — was $730.6 billion in May, compared with $753.7 billion in April.
The personal saving rate — personal saving as a percentage of disposable personal income — was 5.3 percent, compared
with 5.4 percent. For a comparison of personal saving in BEA’s national income and product accounts with personal
saving in the Federal Reserve Board’s Financial Accounts of the United States and data on changes in net worth,
go to www.bea.gov/national/nipaweb/nipa-frb.asp.
What is your Personal Savings Rate?
Rich Uncle EL
I dont really have a personal savings rate per say but I am big on just not spending money in general. It would be interesting for me to caculate exactly how much my savings rate would be as im sure it varies each month.
At the end of the day the bottom line is SAVE AS MUCH AS YOU CAN NOW!! Thats always my motto. At least for now, you never know when times of uncertainty are coming and you will need it.
My recent post How Moving To The Midwest Can Help Speed Up Early Retirement
Yes that is fine if it fluctuates but we still have a savings rate. 1 month it might be 20% then the next it could be 40%. Add up all the money you put into savings, investing accounts, and emergency or replacement accounts. That should give you the figure. Good points on the behavior switch to save as much as you can.
My recent post What is Your Personal Savings Rate?
I use my savings rate as a motivator to be as efficient with my money as possible. Currently, when I look at only the money I am saving into investments, I am around 45%, which will increase now that our last car loan is paid off and that money is being redirected. I calculate my rate monthly to help keep me motivated to try and inch it higher consistently.
My recent post How to Obtain Your Remarkable Life
Hey that is a great rate dividends. With that rate I believe you would be out of the race a lot sooner than many people. The car is gone now congrats, that is a great milestone. Good luck.
My recent post What is Your Personal Savings Rate?