Since fildane.com is dedicated to finding great ways of improving personal finances for my readers, I always make a lot of researches before publishing a blog so I get to see the whole picture.
However, my researches usually lead me to some scary money statistics whenever it comes to financial topics.
Welcome to today’s topic “Top 6 Scary Money Statistics – No. 5 Is Shocking”.
I hope this post will help to rethink and gives you the inspiration to improve your personal finances.
Here we go…
Almost 80% People Are Living Paycheck To Paycheck
According to the American statistics, there are almost 80% of people (78% to be exact) in the US who lives Paycheck to Paycheck.
This is not because of a job crisis. In fact, the unemployment rate is only 3.8%. However, although people have jobs, they’re ending up living this lifestyle because of the crisis of low wages.
Sadly, according to another survey, most of these households with a paycheck to paycheck lifestyle have less than $800 to cover them until the next paycheck.
If you are one of the people who live this lifestyle, I strongly suggest trying to find ways to get out of this bad situation immediately.
Having money set aside and a buffer or emergency fund can greatly help in times when you need it.
$44,500/year And Lower If You’re A Woman Or Has No Education.
A typical American worker now earns around $44,500 a year. This is not much more than what a typical worker earned in 40 years ago, adjusted for inflation.
The BLS (Bureau of Labor Statistics) reports that for the fourth quarter of 2017, men earned a median average of $49,192 while women earned only $39,988 or 81.3 percent of what males earned.
However, workers age 25 and over without a high school degree had average annual earnings of $27,612 at the end of 2017 compared with $37,128 for high school graduates without a college degree.
Ultimately, college graduates with at least a bachelor’s degree earned $66,456 annually. Here you can see that education pays off.
And take note, this is for 40 hours a week job. And these figures are the income before taxes.
$1.5 Trillion Total Student Loan Debt
According to the article from forbes.com, there are more than 44 million borrowers who collectively owe $1.5 trillion in student loan debt in the U.S. alone.
Taking into account of the Class of 2016, the average student has $37,172 in student loan debt.
Not surprisingly, the statistics for 2018 show how serious the student loan debt crisis has become – for borrowers across all demographics and age groups.
As you can see you the interest rates are getting higher every year. This creates stress on the national level.
So, if you have a student loan, you may want to refinance it or find ways to paying it immediately.
$0-$5,000 Retirement Savings (54%)
According to experts’ recommendation, you need at least $1 million to supplement Social Security, pensions and any other sources of funding you may have when you retire.
However, Americans have shockingly under saved for their retirement.
The average amount of Americans have socked away for the future is slightly higher, but it’s still just $84,821.
Northwestern Mutual’s 2018 Planning & Progress Study, which surveyed 2,003 adults, showed that only 21% of Americans have NO retirement savings at all for their golden years. And 33% of Americans have only $5,000 in retirement savings.
To sum it up, there are at least 54% of Americans who will be forced to stay working in their old age because they’ll be able to afford retirement.
Fact # 5:
55 Million Americans Have No Emergency Fund
According to Bankrate.com survey of 1,000 adults conducted in June 2018, there are roughly 55 million people (23%) said they had nothing saved in an emergency fund.
And there are only 29% of Americans who can cover a ‘six-months’ worth of expenses. Sadly, there are only 39% of Americans who can cover a $1000 emergency.
In another survey, there are 69% of Americans who don’t even have $1,000 savings according to a 2016 GoBankingRates survey.
Ultimately, the experts’ recommendation for an emergency fund is an equivalent of at least 8 months of your expenses and any less will be a risk. You need as much money in the bank that makes you feel secure.
If you currently don’t have enough emergency fund, you may consider to reconstruct your budget and dedicate more money to savings and investing. This way, you start building your emergency fund and your future’s stability.
World’s Broken Workplace
Everybody wants financial freedom. Some people love their jobs. Unfortunately, there are only a few of them who do.
According to the research which was released by Gallup.com, there are only 15% engaged full-time employees worldwide.
This means that around 85% of full-time employees around the world hate their jobs.
Surprisingly, the same research shows that there are around 94% of all Japanese employees that are not engaged with their jobs. Japan is then the World’s Broken Workplace.
Are you one of the 85% of people who wants to quit their job?
Do you want to take control of your life and become free from our modern slavery called 9-5 day job?
Then you know, you’re not alone.
There are many people around the world, not only Americans, who are struggling with their personal finances. Unfortunately, managing personal finances is not part of the curriculum in the school.
Personal finances is a very crucial part in one’s life and it is very important to manage it well. As the saying goes “You need to manage your money before your money starts to manage you”.
Personal finances vary according to ages and these are my recommendations in improving it.
For Children – Managing Money For Children
For the 20s – The Power Of Investing Early – 4 Tip for 40s
For the 30s – Best Ways To Manage Your Money At Your 30s – 8 Tips
For the 40s – Top Financial Planning Tips For 40s
For the 50s – Top Financial Tips – Catching Up For 50s
For the 60s – Top 5 Financial Tips For 60s (Pre-retirees Must Know)
Unfortunately, if you reached your retirement age without having your personal finances ready for it, then you will have to work until you die.
Well, having financial constraints and crisis require a higher source of income to be solved. If you want to sustain your lifestyle or to have a better lifestyle, then you need to consider getting a job with a higher salary.
Alternatively, you can start your own business in your free time.
The good news is, you can easily do that if you have access to a computer and the internet.
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This is the end of my topic today “Top 6 Scary Money Statistics – No. 5 Is Shocking”. I hope this post will help you to improve your personal finances and be better than the “average” person.
If you have any thought or question, please don’t hesitate to leave a comment below. Good luck with your journey to financial freedom online. God bless!