3 Reasons Why You Should Save More Money
Americans are not known for their prudent saving habits. Several factors such as stagnant wages, rising expenses, and a general lack of financial knowledge keep many people from building a significant nest egg for the long-term. However, there are plenty of reasons to get motivated and find a way to save more money.
We are currently in the middle of America Saves Week, which is an annual opportunity for organizations to promote good savings behavior and a chance for people to evaluate their personal finances. It started in 2007 and is coordinated by America Saves and American Savings Education Council. The latest survey from the two firms revealed only about one-third of Americans feel prepared for their long-term financial future, while nearly two-thirds feel they were making only “fair” or “no” progress in meeting their savings needs.
“Savings isn’t something you do once a year, or one week out of the year. However, America Saves Week gives us all a chance for a renewed focus not only on why it’s important to save, or to establish goals for saving, but the role that savings plays in helping us achieve our individual needs and goals,” said Nevin Adams, Director of the American Savings Education Council, in a press release. “America Saves Week is a great time to revisit or establish those goals — and to start saving, or start saving more.” Let’s look at three important reasons why Americans should save more money.
A recent survey from Ally Bank found that saving money is one of the best habits people can take to increase happiness. Among those polled with savings accounts, 38 percent of people said they felt extremely or very happy. In comparison, only 29 percent of those without savings accounts felt the same way. Overall, 84 percent of people said saving money makes them feel good — ahead of eating healthy at 74 percent and enjoying work at 68 percent.
The more you save, the more likely you are to be happy. Of those who said they felt extremely or very happy, 34 percent had less than $20,000 in savings, while 42 percent had $20,000 to $100,000 in savings. Furthermore, 57 percent who felt happy had $100,000 or more in savings. “The connection between the size of your savings account and your level of happiness may seem obvious. But here’s something that may surprise you: saving money actually affects happiness more than how much you earn, according to our survey,” explained Ally Bank.