Personal finance stats you didn’t expect
If someone asks you about the average salary in your country, you will probably give some numbers in response. But what about personal finances? Do we all really know anything about the average income of people working in different industries, the amount of debt other people have, and the wealth of those around us? Take a look at the stats that might surprise you.
Up to 40% of student loan borrowers fail to pay it back
According to the Wall Street Journal, most people in the US need a loan to get an education. But when you’re 18 or 20, you can’t guarantee that you’ll be able to pay everything off later. According to the study conducted by the Global Financial Literacy Excellence Center, 54% of student loan holders didn’t even try to calculate their future monthly payments before borrowing money from the banks. Interestingly, women hold about two-thirds of the $1.54 trillion in student loan debt in the United States.
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About 18% of people with an income over $100,000 have no savings
If you’re making between two and five thousand dollars a month, it may be okay to spend before the next paycheck. But what if your monthly income is $100,000 or more? One in five people in the US manage to spend all of their money in the next 30 days after receiving a paycheck. Here’s another fact that might surprise you — about 58% of people with a monthly income of more than $100,000 said they aren’t saving enough for retirement.
The average American saves less than 5%
Take this fact as a reminder that you must have savings for a rainy day. Up to 5% of your income is not enough to ensure you have a comfortable retirement or feel safe when you encounter an emergency. To be prepared for unexpected expenses, you should save 10% to 15% of your disposable income. You can also hire a personal financial advisor and ask them to calculate the amount you need to put aside each month.
23% of Americans have no retirement savings
While some worry because they don’t have enough savings for their retirement, others don’t think about it at all. At the same time, the cost of living is rising rapidly. Some statistics claim that Millennials need about $2.5 million to retire. Amazingly, a retirement plan for more than 70% of Americans is to just keep working.
Knowing how to manage your finances is important no matter your age. Smart money management is what you need to have up your sleeve no matter what. If you haven’t gone yet, know that you’re not alone and it’s never too late to start.
History of John Brown. John is a financial analyst, but also a man with other interests. He enjoys writing about money and giving financial advice, but can also delve into relationships, sports, gaming, and other topics. He lives in New York with his wife and a cat.