Afro American News BUDGET Community Editorial & Opinion Go Banking Living within your means Savings Set a goal

New Hair, New Shoes, New Phone, No Savings

I want you to think for a moment, and reflect on how much money you currently have in your savings account. With that in mind, fast forward years from now when you want to retire. Will you have enough money to continue to live the lifestyle you are living now

By: Chelsea Davis-Bibb, M.Ed.

Many people are making money, but they are not putting away any of it in their savings account for a later date. The problem is that a lot of people are living for now, but aren’t taking the time to prepare for what will come in the future.

According to GoBankingRates, “69% of Americans have less than $1,00 dollars in their savings account.” This may seem like a lot, but it isn’t when it comes to a savings account. People should be saving every month, and the most important thing to do when you save, is to not touch it!

In 2015, GoBankingRates conducted a survey and asked “5,00 adults how much they had saved in their savings account and 62% said they have less than $1,000.” Recently, they asked “7,000 people to see if Americans’ saving rates have improved in the last year or so…the percentage of Americans with less than $1,000 in savings jumped to 69 percent.” There could be a lot of reasons to contribute to this such as people in debt, living paycheck to paycheck, or even living beyond their means. Even though some are not contributing to their savings, there are some people who are. According to the survey, “15 percent have $10,00 or more in a savings account versus 14 percent in 2015.”

I don’t think many people realize that when they retire, most of them won’t be making the same amount of money that they are currently making, they will only receive a percentage. With that percentage, you will still have to pay bills, and if you want to travel, and go out to eat, you will have to calculate those expenses in there as well. For myself, I have two savings accounts. I have one that is long term (that I don’t touch), and I have one that is only for emergencies (I touch this one). I try, even though it is hard at times, to put money in both of these accounts. You never know when an emergency is going to arise, so you want to make sure that you can cover it with no issues. Even though I am young, I have learned a lot from my parents, and from just life in general when it comes to saving money.

  1. Live within your means– we all want nice things and to be able to go on expensive vacations, but you have to know your limits. If you can’t afford it, then don’t buy it, and understand that it’s okay!
  2. Budget– things can get somewhat easier if you budget your expenses. For example, make a budget for bills, food, entertainment, trips and etc. Distribute your funds appropriately so that you can find room to save, and this will help make sure that you aren’t over spending.
  3. Set a goal– I try to set a monthly goal for my savings account. After all of my bills are paid, if I am able to add more to my savings, then I do it!
  4. Don’t touch your savings– when you add money into your savings account, leave it alone! If you have to take money from it, then discipline yourself to put it back. It does no one any good to save money, and then take it away.
  5. Save loose change– any change I find, I save it. You can find change anywhere. I find change on the ground outside, in my couch, around my house, in my car, and even at the bottom of my purse. Loose change will add up! Save as many coins as you can, then convert those coins, and put them in your savings account.
  6. Avoid debt at any cost– some people can’t save because of loans, credit card bills, and other debts. If you don’t have to use a credit card or take out a loan, then don’t! Not only will it be harder to save, but also you are actually spending more money when it comes to interest rates and fees. If you can pay off your debts, then do it, because then that money can now be used for your savings.

If you had grandparents like mine, they stuffed money everywhere. Some old school people would stuff money in their mattresses, at the bottom of their dresser drawers, and even in their freezer! No matter where they hid their money, they still saved! We have to make saving money a habit. You never know when you may need it, especially when you reach retirement. It is definitely something that should be discussed with our younger generations so that they can be prepared for what’s to come in their future. I don’t want to struggle in life, so I make it a priority to save as much money as I can now while I’m young. If you haven’t been saving any money, or not as much money, it is never too late to start. My mom always told me an old saying, “It’s better to have it and not need it, than to need it and not have it.” Let’s start saving people!

Original post:

New Hair, New Shoes, New Phone, No Savings