What Economic Recovery; 62% of Americans don’t even have $1000 in savings
By Sol Palha
GoldSeek.com
Monday, 11 July 2016
He who is plenteously provided for from within, needs but little from without.
Johann Wolfgang Von Goethe
A key sign of financial health is savings; if one does not have a decent amount of money tucked away for a rainy day, it is a sign that all is not well. Americans have a very hard time sticking to a budget and saving, compared to their Asian counterparts. This is reflected in the startling revelation that over 62% of Americans do not even have $1000 in their savings account. Foreigners are shocked when they find out that Americans have so little money saved for a rainy day.
“It’s worrisome that such a large percentage of Americans have so little set aside in a savings account,” said Cameron Huddleston, a personal finance expert and columnist for GOBankingRates. “It suggests that they likely don’t have cash reserves to cover an emergency and will have to rely on credit, friends, and family, or even their retirement accounts to cover unexpected expenses.”
If 62% don’t have $1000 or more what will they do if someone misfortune should strike? Hope that some Good Samaritan throws money on their laps. Many Americans are having a hard time but if one examines some of the things the typical American family purchases one will note that there are many items that would fall into the category of non-essential’s.
Spending money you don’t have on junk you don’t need to impress people you don’t even like is a perfect recipe for disaster. Americans have never learned to live within their means and with the economy in disarray they should be living one to two levels below their means. In general putting money into a savings account amounts to folly, as the current set up (due to ultra-low interest rates) favours speculators, but a small portion of those funds you save should put away as something to fall back. In that sense, not having $1000 to fall back on is a real tragedy.
The situation in China, on the other hand, is quite different; in one of our recent articles of which an excerpt is posted below, we illustrated how many of the Middle-Class Chinese have $50,000 or more in savings.
The Rest…HERE
