Get 10% Cash Back at Amazon.com Through Christmas!

The Discover it card is offering 5% cash back at Amazon.com through 12/31, but will double it after your first year being a card member.

And This Is Why I Save…..

Alright everyone, I have a quick one for you today.  As most of you know, I love infographics.  I can’t get enough of visuals because it helps me understand a concept better.  That being said, the following visual is tragic.  I actually used to be in this statistic class and I am happy to say that I am no longer.

Why I Save

As you can see from the graphic below, we, as Americans, are doing a horrible job at saving our money.  How can we think this is OK?  As I got out of debt, I would have been embarrassed to have that little in my savings account.  As a new parent, I am happy that I have some cash reserves to makes sure I can support my family.  This give me great comfort and that is why I save.  If you are struggling to pay off debt and save, then why not check out my debt payoff/savings allocation method.  It worked well for me and I hope you can do it.

So, check out the below infographic and tell me how you feel about our savings dilemma.  These numbers scared me a little.

American rainyday fund dilemma

Household Rainy-Day Funds Still in Short Supply infographic


Automate Your Savings for Free

Do I sound a little crazy here? Maybe. There is a free app out there called Digit, which enables you to easily automate your savings by analyzing your purchases and income. It saves where you think you can't and does it all for you, for free! I save over $400 a month by doing nothing! Check out my Digit review here.

About the Author Grayson Bell

I'm a business owner, blogger, father, and husband. I used credit cards too much and found myself in over $75,000 in debt ($50,000 in just credit cards). I paid it off, started this blog, and my financial life has changed. I now talk about fighting debt and growing wealth here. I run a WordPress maintenance and support company, along with another blog, Eyes on the Dollar, which is another great personal finance blog.

follow me on:

Leave a Comment:

42 comments
Matt Becker says June 26

Some pretty scary numbers there. The one that jumps out to me is the 56% of people with kids who have less than $800 in savings. That’s a precarious place to be.

Reply
    Grayson says June 27

    I agree with you Matt. I don’t know what I would do if I only had $800 in the bank with a child.

    Reply
Melissa S. says June 26

This is amazing to me, granted it comes as no surprise. I can’t believe how many people live their lives pay check to pay check and think it’s okay or do nothing about it. People should be ashamed if they have that small amount in savings. It’s time to stop being a consumerist society and start being responsible!

Reply
    Grayson says June 27

    I am with you there Melissa. It is amazing, yet not really surprising. We need to break the spending culture that we are in.

    Reply
Jake @ Common Cents Wealth says June 26

These numbers are pretty scary. I can’t believe almost half of America has less than $800 in savings. I feel like my wife and I don’t quite have enough right now, but it’s a heck of a lot more than $800. It’s numbers like these that motivate me to try to help people manage their personal finances. So many people could be much better off if they just had some good advice (rather than everyone telling them how much something costs monthly, or how much their credit limit is).

Reply
    Grayson says June 27

    Scary indeed Jake. I didn’t like seeing those numbers, but it really puts my position in a better light.

    Reply
Pauline says June 26

I couldn’t sleep with less than $100 in savings! It is even scarier in the long term, who will take care of those people?

Reply
    Grayson says June 27

    I wouldn’t be able to sleep either Pauline. That is too little.

    Reply
E.M. says June 26

Ack! How could so many people be comfortable with that amount in savings? I would not be able to sleep at night if I had less than $800 to my name. Do people really believe credit cards and the like will save them? There’s also probably too many people living paycheck to paycheck. This is disheartening.

Reply
    Grayson says June 27

    I don’t know if they are comfortable, but I think most don’t know how to change their habits or they blame the system for what is in their checking account. I have talked to too many people like that and it is sad.

    Reply
DJ - MoneyforCollegePro says June 26

Wow, that is scary! I don’t feel like I am any where close to where I want to be with my saving goals, but I am far above the majority of Americans it looks like.

Reply
    Grayson says June 27

    I am with you there DJ. I thought I wasn’t doing that well, but after looking at these, I feel much better.

    Reply
Michelle says June 26

This is definitely scary. I can’t imagine.

Reply
Jacob @ iHeartBudgets says June 26

Holy junk that is some scary stuff right there! No wonder everyone has road rage, more than half of them on on the financial edge day to day! I don’t have a HUGE emergency fund, but holy crap, I don’t know what I’d do with only $800 in the bank…

Reply
    Grayson says June 27

    Haha, great comment Jacob. I am sure that most people are upset due to their financial positions.

    Reply
krantcents says June 26

I have been a lifelong saver and it has given me so many more choices in life. I used savings to buy my first house and invest in income property. Savings has iven me so much in life, I am glad I learned how the savings habit early.

Reply
    Grayson says June 27

    I can’t say that I have been a lifelong saver, but I have seen the effects of long term savings on the quality of life and that is what I am striving for.

    Reply
Joshua Rodriguez says June 26

Those numbers aren’t surprising! This is why budgeting is so essential. Thanks for posting the info-graphic!

Reply
    Grayson says June 27

    Knowing where you money is going is very crucial to financial success.

    Reply
Andrew@LivingRichCheaply says June 26

Interesting infographic. It is pretty shocking that so many Americans have so little savings. I had a co-worker mention that he is living paycheck to paycheck and that everyone he knows is too. I don’t know about his friends but my co-worker makes a decent income…sure he has a lot of student loan debt, but he should not be living paycheck to paycheck. B-U-D-G-E-T!!

Reply
    Grayson says June 27

    I know quite a few people that are living paycheck to paycheck, but they are doing that because they spend too much.

    Reply
Canadian Budget Binder says June 26

Wow, those numbers are scary and enough motivation for me.

Reply
KK @ Student Debt Survivor says June 26

Wow, I know people don’t save, but I had no idea it was that bad. I’m scared and sad all at the same time. I guess this is why the pay day lenders do so well.

Reply
    Grayson says June 27

    So true about the payday lenders. There wouldn’t be a market for them if people didn’t live paycheck to paycheck.

    Reply
Jules@Faithful With a Few says June 26

I am currently one of those sad statistics, but it isn’t because I dont care and Im certainly not comfortable, its because I never learned how until recently. Things are changing for me, but it isnt easy.

Reply
    Grayson says June 27

    You might be one of the statistics, but you are working on changing that and that is what counts. You understand what you did wrong and you are changing it.

    Reply
thepotatohead says June 26

Wow, almost a 1/4 of Americans with less than $100, now that is scary. ANY sort of setback financially and that would pretty much wipe out the savings. I always try to have at least $1k in my checking account, and am working on the 6 month emergency fund…and here I thought I was behind the curve :/

Reply
    Grayson says June 27

    This is why people stay in debt. This is the biggest argument for emergency funds. There are many out there that think EF’s are not important, but this shows that they can really make a difference.

    Reply
Savvy Financial Latina says June 27

I could not imagine having so little for savings. I can’t imagine having less than $5K!

Reply
    Grayson says June 27

    $5k is a good amount to have and as long as it makes you feel secure, then that is what is important.

    Reply
DC @ Young Adult Money says June 27

We definitely have a savings problem here in America. It’s too bad savers are penalized via inflation, but that is no excuse for not having at least a small emergency fund.

Reply
    Grayson says June 27

    It irritates me that savers are penalized for saving. We get shafted because we are not spending our hard earned money quick enough.

    Reply
Alexa says June 27

I feel like many young adults and adults alike have trouble saving money today. It’s very common to not have a savings account at all when you’re busy paying debts and loans by dipping into whatever small amount you DO have saved. Many people just don’t have the knowledge on HOW to save money nor are they aware of all the beneficial tools available to assist them in automatic savings. I know I didn’t have that knowledge at first, but I am grateful that I figured out the importance of savings when I did.

Reply
    Grayson says June 28

    You are correct. There is relatively little knowledge about saving money. Everyone knows how to spend, but no one knows how to save.

    Reply
Laurie says June 28

Wow, seeing it on “paper” makes for quite the nauseous stomach, doesn’t it. But I’m not surprised. In talking and observing so many people around me, this is definitely the norm. The scariest part, for me, is that so many people don’t seem bothered by it/don’t think they can or don’t want to do anything about it. 🙁

Reply
    Grayson says June 28

    Good point Laurie. So many don’t really care. As long as they can stay with their head above water, then they don’t really mind. I don’t like that at all.

    Reply
Jim says June 28

Very sobering statistics Grayson, we are a a society based on consumption and I think that has led us down a dark path. In my opinion, we trade material goods for ethics and morality. And I think that sound ethical and moral principals go along with saving. Have a great time at the wedding! Hope you get to chase the white ball!

Reply
    Grayson says July 1

    You are so correct there Jim. We are pushed to consume and then when we don’t, we are treated like we are not helping the country. It is sad.

    Reply
Michael @ The Student Loan Sherpa says June 29

This is a fantastic graphic with some very troubling statistics. Where do these numbers come from? Would it be fair to say that 46% (those with less than $800) are living paycheck to paycheck? Or would this include people who have most of their money put in stocks, bonds, etc?

Reply
Grayson says July 1

Thanks Michael. I think the numbers come from a study done by the infographic creator. I think it would be fair to assume that the 46% live paycheck to paycheck, but I can’t say that is a definite or not.

Reply
Add Your Reply