Financial problems are everyone’s worry, starting from retirement to even savings. The question that comes up by financial experts is whether or not you can have $2,000 to cover up an unexpected need; the catch is that you need to have $2,000 within a month. The answer may just shock you. No one can cough up $2,000 or have $2,000 in their bank accounts if something unexpected was to happen. So the questions comes to why can’t the American people achieve a small goal of saving that little $2,000?
Since the recession in 2008, unemployment has stagnated, increased, or decreased within the United States. The question that was asked back in 2009 proved that half of the US population could not come up with the money in one month, forward 6 years later to 2015 and now only one third of the US population could not come up with the same amount of money in the same time frame. This increase in unable to save money is showing an uphill trend and it should say something to you, save up now and make sure you are stable in the long run. While many families may be doing better since the recession, there are some families that still feel the pain since 8 years ago. Why is it that Americans can’t save?
Let’s break it down by family resilience or individual resilience. Millennials account for nearly half of the marketing industry. But nearly 42% of millennials are financially fragile. Why is that? It may have to do with spending money constantly; it also may have to do with the rising affordability rates of homes and apartments. But whatever the case, there is an increase in instability within this age group. Meanwhile, one fifth of the middle class is vulnerable to losing money or economic stability and nearly half of the African-American community can face vulnerability in monetary standards. The rising increase in being unable to afford money could show that the US has reached its borrowing capacity, or it has shown that more and more people are not being careful with their finances.
Programs and opportunities to work on retirement accounts and college funds are also one way to look at the long-term benefits of saving, but the short-term goal to making those savings stick is the most important aspect of your finances. Put away as little money as you can, watch your budget, stick to the amount of money you want to spend for a week’s worth of groceries to even a month’s worth of groceries are some options you can work out with the family. Tracking snacking habits and food preferences is another way to make the shopping much easier on your wallet. There are great short-term goals you can achieve with financial planners and if you are looking for options to start saving a little money away, you can always contact our office for financial information.
