Scary movies might be fun to some, but there’s nothing fun about a dark financial future. If your fear of finances is holding you back and you’re worried about braving the unknown, review this list of financial statistics and ways to avoid encountering a “scary” situation:
- 33% of baby boomers have $25,000 or less in retirement savings.1 A worrisome number from a recent retirement survey that also revealed an even scarier statistic: 21% of Americans have no retirement savings at all.1 The best way to get out of the dark here is to act now. Invest wisely and realize that saving money in a bank, for example, typically yields low returns. Instead, consider putting your money in a tax-deferred IRA account or 401(k) retirement account, especially if your employer matches contributions.
- 9% of Americans making at least $100,000 live paycheck to paycheck.2 Even those perceived as having lucrative jobs still make poor financial decisions. For many, having more money equals more spending. Time to face your financial situation head-on. Practice making cuts in your monthly expenses to avoid living paycheck to paycheck while adding more to savings or investments that pay back. The more often you practice good spending habits the less scary and more fruitful your financial situation becomes.
- If faced with an unexpected expense of $400, 12% of adults wouldn’t be able to cover the expense at all, while 27% say they would borrow or sell something to cover it.3 This is a concerning statistic to think that the average American could not cover an unexpected expense, like a car breaking down or replacing a broken household appliance. General financial wisdom advocates establishing an emergency fund stocked with enough reserve cash to cover three to six months of living expenses. The best way to deal with this is to plan for the unexpected. If saving is an issue, consider setting up an automatic withdrawal from your paycheck to push more cash into savings.
You don’t have to face the fear alone. Reach out today if you’d like to schedule an appointment. The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. 1https://news.northwesternmutual.com/2018-05-08-1-In-3-Americans-Have-Less-Than-5-000-In-Retirement-Savings 2 http://press.careerbuilder.com/2017-08-24-Living-Paycheck-to-Paycheck-is-a-Way-of-Life-for-Majority-of-U-S-Workers-According-to-New-CareerBuilder-Survey 3https://www.federalreserve.gov/publications/2019-economic-well-being-of-us-households-in-2018-executive-summary.htm |
