Can there be any greater evidence? Spending is at least as important as income when it comes to saving and managing money. Most Americans can save if they have the discipline to do so, not at 33% perhaps, but certainly at 10% or so. The question is why don’t they?
Here’s a tip for saving I wrote about earlier in 2020 on the financial blog HumbleDollar. Take a look. 🤑
The personal savings rate hit a historic 33% in April, the U.S. Bureau of Economic Analysis said Friday. This rate — how much people save as a percentage of their disposable income — is by far the highest since the department started tracking in the 1960′s, and surpasses consumer savings during the Global Financial Crisis. April’s print is up from 12.7% in March.
“There is a tremendous uncertainty and virus fear that is lingering and that is restraining people’s desire to go out and spend as they normally would,” said Gregory Daco, chief U.S. economist at Oxford Economics.
The previous record savings rate was 17.3% in May 1975, according to FactSet. The savings rate was elevated above 13% throughout most of the early Seventies. The increase in savings came as spending declined by a record 13.6% for the month. Source: CNBC . U.S. savings rate hits record 33% as coronavirus causes Americans to stockpile cash, curb spending