America’s Shrinking Savings Accounts: 5 Alarming Stats
Introducing the YOUconomy Series
The recession may technically be over, but that doesn’t mean much for America’s savings accounts. Too few of us are putting away as much as we should. The rule of thumb is to have enough savings to cover 6 months of expenses, but these five consumer stats from the Corporation for Enterprise Development (CFED) and Statistic Brain put some alarming perspective to the state of our personal savings.
44% of US households – equivalent to 132.1 million people – do not have a basic personal safety net to prepare for emergencies or future needs.
Of the 44% of American households without emergency funds, 88% are employed and 75% are employed full-time.
Nearly two-thirds of Americans between the ages of 45 and 60 now plan to delay retirement, compared to 42% in 2011.
28% of Americans don’t have any savings whatsoever.
Only 18% of American adults are confident about having enough money for retirement.
But the truth is that many Americans simply feel that they don’t have room in the budget to regularly contribute to savings. Incomes are stagnant, household expenses are growing, and the New Year brought a two percentage point bump in payroll taxes from last year, cutting into the take-home pay of many Americans.
In times like these, how are Americans expected to build savings? According to a handful of innovative US companies, the solution is to get creative with our free time.
With the introduction of companies like Sidecar, Airbnb and Dabble, what we once referred to as “the occasional odd job” is now a sustainable potential means for earning supplemental household income . From teaching a monthly class to grabbing groceries for a neighbor, these digital upstarts are helping American employ their unique skillsets to bring in extra cash without taking on a traditional part-time job.
Over the next several weeks we’ll introduce you to the YOUconomy: a modern approach to earning that pushes you, your skills and your schedule toward a smart, sustainable financial lifestyle.
At NetCredit, we’re more than just a personal loan lender. Check back in the coming weeks as we share a series of ways for you to earn extra money, which can be used to build up your personal savings and personal finance.