Common ¢ents - April 30 edition
In this week's issue, we continue our "10 reasons you're not rich" pointers, share a video about the things we waste money on, and answer our first Common ¢ents question. Enjoy!
10 Reasons You're Not Rich
Reason #2: You Save Too Little
If you’re like most folks, your savings habits could use some improvement. The personal savings rate in the U.S. is just 4.9 percent of disposable income, down from a high of 14.6 percent in 1975. Only about one-half of Americans (54 percent) say they have a savings plan in place to meet specific goals, according to a 2013 survey commissioned by America Saves, a group that advocates for better saving habits.
Saving needs to be a priority in order to build wealth. Begin with an emergency fund that can be tapped in the event of an illness, job loss or other unexpected calamity. A 2012 survey by the Financial Industry Regulatory Authority found that 56 percent of individuals say they have not set aside even three months’ worth of income to handle financial emergencies. Once your emergency fund is well under way, you can divert small amounts toward other goals, such as buying a home or paying for college. These six strategies can help you save more, no matter your income.
10 Things Americans Waste Money On
Click the image below to watch a clip of financial planner Dave Ramsey and his daughter talking on CNN about 10 things that we waste money on. Are you doing any of these things? Can you stop doing one or two of them and start saving that money? (If the link times out, please just try it again; we've been having intermittent issues with CNN's page loading - or try the link directly here: http://www.cnn.com/video/
I Need a Common ¢ents Answer
Common ¢ents Answers lets readers submit their financial questions to our Metropolitan financial gurus.
Last week, one of our members submitted this question:
How does one budget for the family's grocery bill? Is there a calculation based on the ages and number of children and geographic location?
Here is the response:
For most Americans, how much we spend on food is a function of how much we earn, how many children we have at home, where we live and whether or not we eat mostly at home. Please see the results below from the most recent Gallop poll (2012) on this.
Americans Spend $151 a Week of Food; the High-Income, $180
Do you have a question that needs a Common ¢ents answer? Submit it here!