- A third of Americans do not feel financially secure and have a lot of caution about the future in 2022
- 36% of US residents have not enough money to cover even a small 400-dollar emergency expenses
- If you don’t have even this small amount in savings, you tend to apply for a $400 dollar payday loan to get emergency cash for urgent expenses.
- On average, Americans have $4,500 on their Savings Account Balance. Once one comes across an unexpected medical emergency, or some serious car repair, $4,500 may be not enough, and here most people apply for $5,000 Installment Loans, or up to $35,000 Personal Loans.
- The period for which you need to save money directly depends on what kind of lifestyle you lead (live alone or in a pair with another working person, work for someone or have your own business, etc.)
- It’s recommended that every person needs money in savings enough to cover a six months' expenses. The average monthly expenses are $5,111 which means one needs a lit more than $30,000 in savings. It’s much higher sum than $4,500. This fact makes it rather hard for the Americans to avoid borrowing money in case of any urgent or unexpected expenses.
Savings Advice from Maggie Miller, Finance Expert from Maggie Loans
Being a financial expert, I must admit that very often people find themselves in hopeless situations when they urgently need money and there are no savings available. I can say from my experience that the future seems unclear now and almost half of Americans cannot feel confident about the US economic situation and their savings.
25 percent of Americans in 2022 have no savings at all, and a third of the population does not have enough savings even for a few months. That is why today I wanted to share some tips on how to save money to avoid unpleasant situations in the future. Saved money always gives more confidence and peace of mind.
Saving Money Basic Tips
So, there are some basic recommendations depending on what your lifestyle is.
- If you are the owner of a small and medium-sized business, then you should set aside funds for a year. It is this amount that, under extreme conditions, will allow you in most cases to keep your business and not be left without a job.
- If you live in a family where two people work at once, then it is worth setting aside funds for a period of 3 to 6 months. It is with such savings that if one of the family members loses his job, a period of 3 to 6 months will be enough to find a job in a comfortable rhythm of life.
- If you work and live alone, the best time to save is 6 months. This is the period that you can live without work and without any support from the outside. In principle, from an expert point of view, I want to say that it is better for both a single worker and a person from a family with two working people, if possible, to save money for a longer period, since there are various unforeseen circumstances in life. Savings for 8-12 months will allow you to pay your bills longer, pay your basic needs, and generally feel more at ease. A t the same time, if you find yourself in a hopeless situation and you have no one to turn to, you can always apply for Guaranteed 3-Month Payday Loans.
- And of course, it is retirees who should save for the longest period - this period is from 1 to 3 years. Such a rapid rise in inflation can have the most deplorable effect on retirees, since it is usually the hardest for them to find additional income. In order not to have to sell all the acquired property and feel anxious, it is better to postpone for up to 3 years (but of course it all depends on your monthly income).
3 Best Ways to Start Saving Money
Of course, all people relate to savings in completely different ways and not everyone has the habit of saving money for the future. Here are some tips to help you save and discipline your spending:
- Download an application in which you can enter income, expenses and control their dynamics.
- At the beginning of each month, write down the needs for which funds are necessarily needed, and which can be refrained from.
- Pay attention to promotions and save on what you can save on.
As a last resort, you can apply for best payday loans for emergencies in order to sort out your financial issues and avoid such situations in the future.
Saving Account or Emergency Fund?
Some Americans keep all their money on their savings account, others have a separate emergency fund. As statistics show, more than 50% of people have $4,500 on the account and about $2000 in their emergency fund.
Most experts, including me, believe that you should open a high-yield savings account to start an emergency fund. It’s the best place to keep your money for emergency.
Ways to Get Emergency Financing Alternative to Loans
- First of all, decide if it’s a really urgent emergency and think on the amount you need. Check if any of your friends or relatives could help.
- Get help from nonprofit organizations and charities. Look for any financial assistance funds you could apply to.
- Talk to your employer to get an advance on your paycheck.
- Pick up some odd job.
- Sell some unnecessary staff.
- Borrow from your retirement account.
There’s always a way out. Don’t forget about it. Loans may lead to even more debt. Do your best to try out all the possible options first.
To sum it up
So, I would like to say that all people have a different attitude towards finance and savings. Of course, the habit of saving money is financially literate and can save you a lot of trouble down the road. But that doesn't mean you should feel guilty about not being able to save or plan your finances. Start with small habits and in the future, it will lead to a good result.