What is Your Personal Savings Rate?

[toystory1130]

I am currently saving for a slew of different stuff~college, a new truck, retirement, etc. I saw a quick piece on the Today Show about our personal saving's. Currently we (the US) save's only 5.5% of our income. 1 of every 5 of us saves nothing~ but in Mexico they save 19% and in Japan 21%. What gives, why are we so behind other country's when we all seem to have so much stuff?
How much do you save and what are you saving it for??

http://www.tradingeconomics.com/united-states/personal-savings

 

[havaneselover]

10% for retirement (employer contributes an additional 3%).

About 3% for college. I already have 8 semesters paid for for both children. This is for room and board.

4% for my hsa. Both kids will likely need braces soon.

I also save monthly for house maintenance and a new vehicle.

 

[Disneefun]

+/- 60%, spread out over 401K's, IRA's, HSA's, traditional savings, and taxable investments.

 

[MomToOne]

Right now I'm running about 29% against my gross income. That's long-term savings only, not things like vacation funds and the like. And it doesn't feel like nearly enough!

 

[tvguy]

DW and I are both putting 15% into 401k's, plus 3% employer match. Beyond that, no specific percentage or dollars amount.

 

[runwad]

DH and I each regulary save 20% in our 401k's at work. All other savings tend to be diverted after all other expenses have been paid. I used to regularly save in other vessels but the older my kids got and more expensive they became, I had to scale those other savings back. I'm fine with what we are saving, our 401k balance's will provide enough income in retirement and we both have pensions that we qualify for.

 

[Echo queen]

I need to be apart of this group that are handling there finances I will stay tuned in order to do better. Thank you all.

 

[crisi]

We used to save about 40%, but now we are both sort of semi retired in less serious jobs.

 

[Cormoran]

I am currently saving for a slew of different stuff~college, a new truck, retirement, etc. I saw a quick piece on the Today Show about our personal saving's. Currently we (the US) save's only 5.5% of our income. 1 of every 5 of us saves nothing~ but in Mexico they save 19% and in Japan 21%. What gives, why are we so behind other country's when we all seem to have so much stuff?
How much do you save and what are you saving it for??

http://www.tradingeconomics.com/united-states/personal-savings

The "so much stuff" is what prevents people from saving. Most Americans are into instant gratification. I save 60% of my income, because when I do retire I want to afford travel.

 

[tzolkin]

I am currently saving for a slew of different stuff~college, a new truck, retirement, etc. I saw a quick piece on the Today Show about our personal saving's. Currently we (the US) save's only 5.5% of our income. 1 of every 5 of us saves nothing~ but in Mexico they save 19% and in Japan 21%. What gives, why are we so behind other country's when we all seem to have so much stuff?
How much do you save and what are you saving it for??

http://www.tradingeconomics.com/united-states/personal-savings

I think that's the biggest issue. Most Americans feel compelled to buy "stuff"

I know there are always people on the Budget board who are great with their personal finances and have plenty saved (for college, retirement, etc), but that's really not the norm. Most people spend everything they make (and then some)

I work in finance and most clients (middle class, dual income) don't even have any money in the bank for an emergency fund. They are living paycheck to paycheck and have debt (credit cards, cars, student loans, and other). Despite this, these people would actually fall into the 4 out of 5 range you describe since they may put $25 a paycheck into a retirement account through their work. So I also think the 1 out of 5 estimate is a bit skewed. Even those who fall into the "saver" category are not saving nearly enough.

 

[RitaE]

Last year 23%. That's retirement and other investment accounts. I don't count money put into a savings account for car replacement, emergency fund or whatever in that number.

 

[amylevan]

12% (+ 3% company match) into 401K

We already have 1 years salary in various taxable accounts/investments. (It was inherited years ago, and we rarely touch it.) Because of that, we do minimal other "set" savings, other than spending less than we make so that we end each year in the black.

 

[MillauFr]

About 8%.

 

[threeboysmom]

Roughly about 30% split between retirement and savings accounts.

 

[abcboys]

I have a lot of different savings accounts that I feel like I never accomplish much in each. 8% in 401K, $45/week in emergency savings account, $25/week vacation account, $10/week Christmas, $100/mo divided into 3 kids college savings account, $65/every 2 weeks for property taxes, and some random money in a new car fund. I honestly have no idea what percentage of my income that is and I am too lazy to figure it out.

 

[tvguy]

I think that's the biggest issue. Most Americans feel compelled to buy "stuff"

I know there are always people on the Budget board who are great with their personal finances and have plenty saved (for college, retirement, etc), but that's really not the norm. Most people spend everything they make (and then some).

There certainly are some people with financial problems that are beyond their control.
But we seem to not be teaching people to save money, or some are choosing not to save. Bankruptcy seems to be as common as refinancing your mortgage for some folks. Although a former neighbor of mine tried that route and was ordered to do credit counseling because they had the income to cover all their bills, they just hoped to walk away from them.

 

[Judique]

The "so much stuff" is what prevents people from saving. Most Americans are into instant gratification. I save 60% of my income, because when I do retire I want to afford travel.

After deductions I barely have 60% left!

 

[Cormoran]

After deductions I barely have 60% left!

Well, I max out my 401K. So less of my money goes to the IRS. I also don't have children, and I think that has a lot to do with it.
Over the years, every time I have received a raise, I have never increased my discretionary spending. I also never incurred any debt. I paid my way through college with no student loans. I'm not saying everything was easy, but the only debt I have is my home. But, I wonder how financially secure I would be if I did have children.

 

[runwad]

Well, I max out my 401K. So less of my money goes to the IRS. I also don't have children, and I think that has a lot to do with it.
Over the years, every time I have received a raise, I have never increased my discretionary spending. I also never incurred any debt. I paid my way through college with no student loans. I'm not saying everything was easy, but the only debt I have is my home. But, I wonder how financially secure I would be if I did have children.

Well believe me not as well off, those little buggars are money suckers.

 

[eliza61]

I am currently saving for a slew of different stuff~college, a new truck, retirement, etc. I saw a quick piece on the Today Show about our personal saving's. Currently we (the US) save's only 5.5% of our income. 1 of every 5 of us saves nothing~ but in Mexico they save 19% and in Japan 21%. What gives, why are we so behind other country's when we all seem to have so much stuff?
How much do you save and what are you saving it for??

http://www.tradingeconomics.com/united-states/personal-savings

That's a very hard question to answer and I think the ole "instant gratification" reply is just a pat answer so we don't have to exam some serious social problems.
For example, if you are living in abject poverty, how much are you saving? Does the survey take into account different tax situations? for example, my late dh's family was from a country that paid for kids college tuition and health care. do you know how much I could save if I didn't have to pay for college tuition for 2 kids, lol.
What about life changing situations? when my dh passed away his salary was 70% of our household income. now we lived below our salaries but basically my income dived, yes we had our ducks in a row but if we didn't????

This survey doesn't say much and if you read on you'll see that from 1959 until today our savings rate averaged about 6.5% so in reality we've hung in there.

LoL, after saving for all our lives, my dh died from cancer at 55. I've crossed over to the dark side, I'm retiring early and spending.