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| Education and Financial

10/21/15

Savings planned: Why is it so hard for Americans to save money

When it comes to saving money, Americans have it all wrong. Actually, you could argue we're heading in the wrong direction.
A recent study chronicling how much money the average person has in a traditional savings account certainly isn't encouraging. This poll reports that more than 20% of the population doesn't have a savings account, while a staggering 62% have $1,000 or less.
Hardly the nest egg you can truly rest comfortably on, particularly if something goes wrong from a car transmission to roof leak. The idea behind having a savings account is quite simple: it's a combination of peace of mind and being able to have money on hand for the just in case marketplace. You can only imagine how taxing and frustrating it can be if you have a major repair or need money on hand, and you have a savings account that has seen better days.
Or doesn't even exist.
This is especially concerning given that any money needing to be on hand is non existent and thus the only way to pay for what you need is through borrowing and going further into debt. Taking on debt is one thing if you have the money to ultimately cover it at a moment's notice, but if you have a savings account under a grand, you don't have much room to move.

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So why exactly is it so difficult to save money?
Really, it boils down to expenses versus income and not really paying attention to how those two are related. How many people have you run into that say how this Friday is payday and they're waiting to pay past due bills or have no idea that the money coming on that day already is spent, yet that doesn't keep them from dinner on Saturday night or tickets to Sunday's football game; all of which, they cannot afford.
For those who budget, they know what they can and cannot spend money on, whereas the lack of a budget means it really is just a free for all. And the latter is tailor made to not save money. Convenience, and how it plays into spending, also is the proverbial kiss of death.
The general population tends to gravitate toward cable television, pay channels, high data plans for their cell phones or trying to have exactly what they want product and service wise, even though it isn't a necessity nor is it helping the saving money cause.
Everyone has that one friend who can't make his rent payment, but gets a weekly $100 per hour massage.
The savings crisis can be summed up in a variety of ways but not just one specific reason abounds. You have more than just a segment of the population that has a penchant for spending not saving or quite simply living beyond their means.

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