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.
This is what we do - I have close to 15 accounts set up for everything - utilities, property taxes, mortgage, vacation, kids, student loan payments, etc. Everything is direct deposited into their own special account and I never really have to think of it. When a bill is paid off (working on medical and the cost of a brand new bathroom!), I roll that monthly savings into "something". Whether it is vacation, general savings, student loans, etc.
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.
I could not agree with you, more. I know what we live on a year now, and I know what I want to live on in retirement - which is about 25% of what we gross now. So that is what I save towards. I refuse to give up my life that I am living TODAY for a life that might not happen, tomorrow.
Save, sure, but your ability to actually spend it...not a guarantee. I don't want to be on my death bed saying "wish I had decided to have more fun".
Debt does not scare me, as a whole. Overwhelming debt does, but there are always ways to fix it. So, we choose to save what we can that will not make today's fun be put off for a chance at fun tomorrow.
Life is short, have some fun.
PS - my dad and mom saved SOOOOOOOO much. So much. Worked their butts off. Dad died at 51, 3 years short of retirement. Mom retired alone at 55. Sure, the money will carry her through to the end of her life and then some, but she really wishes they had used that money to have some fun together when he was here.
