Non-Savers "don't see a correlation between where they are now and where they will be"

Guess what? America's best savers aren't wealthy


A quarter of middle-class households (those earning between $50,000 and $75,000 annually) set aside more than 15 percent of their income, according to a survey that accompanied Bankrate's March Financial Security Index. That money is rerouted from their daily expenses to fund long-term goals such as a retirement investment plan or an emergency savings account. Comparatively, 8 percent of lower wage earners contributed this much. And only 17 percent of the highest earners in the survey (households making $75,000 and above) elected to put the same amount of their salaries away for a rainy day. "Middle-class Americans (have) to do the saving, because nobody is going to do it for them," says Greg McBride, CFA, Bankrate's chief financial analyst. "They don't have the six-figure income to fall back on" for expenses, including household emergencies, long-term health care, children's education or their own retirement. In contrast, people between 18 and 29 years old -- the youngest group in the survey -- were the most likely to save relatively little: 37 percent said they save 5 percent or less. Another 18 percent said they save nothing at all. "They don't see a correlation between where they are now and where they will be," independent budgeting expert Tiffany Aliche says.
Comment: Image source: The origin of the Piggy Bank. Jim's simple savings tips:

  • Eat out less
  • Travel less (we've had great times just going to a neighboring state!)
  • Less clothes
  • Older cars
  • Simpler gifting. 
  • Enjoying the simple things of life 

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