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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.

And This Is Why I Save..... savings

Household Rainy-Day Funds Still in Short Supply infographic

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About Grayson Bell

I am an average Joe, who built up over $50,000 worth of credit card debt and had to learn how to break it back down. It took 4 years of learning budgets, secrets, and many other personal finance tricks in order to cut the debt to $0. Now, I push to teach others not only how to get out of debt, but how to use credit wisely and how to start growing their wealth. You can view my other site, Sprout Wealth for ways to grow your money. I am also a freelance personal finance writer who provides staff writing and ghost writing services.

42 comments

  1. 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.
    Matt Becker recently posted..I Have No Idea What the Stock Market is DoingMy Profile

  2. 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!

  3. Jake @ Common Cents Wealth

    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).

  4. 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?
    Pauline recently posted..Snatch Opportunity Like a Trapdoor SpiderMy Profile

  5. 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.
    E.M. recently posted..Methods for DeclutteringMy Profile

    • 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.

  6. 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.
    DJ – MoneyforCollegePro recently posted..7 Ways to Earn $1000 Extra Per MonthMy Profile

  7. This is definitely scary. I can’t imagine.
    Michelle recently posted..Are you spending more? Better off today than before?My Profile

  8. 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…
    Jacob @ iHeartBudgets recently posted..5 Attitudes That Will Save You MoneyMy Profile

  9. 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.
    krantcents recently posted..Google Reader Is Going Away, but I am Not!My Profile

    • 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.

  10. Those numbers aren’t surprising! This is why budgeting is so essential. Thanks for posting the info-graphic!
    Joshua Rodriguez recently posted..First Progress Credit Card ReviewMy Profile

  11. 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!!
    Andrew@LivingRichCheaply recently posted..Did I Flush $80,000 Down the Drain by Renting?My Profile

  12. Wow, those numbers are scary and enough motivation for me.
    Canadian Budget Binder recently posted..New Canadian ePassport is around the corner for CanadiansMy Profile

  13. 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.
    KK @ Student Debt Survivor recently posted..Taking Advantage of Bank Sign up Bonuses = Easy $200!My Profile

  14. 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.
    Jules@Faithful With a Few recently posted..Watch Out For This New Traffic Light Camera Scam Which Steals Your IdentityMy Profile

    • 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.

  15. 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 :/
    thepotatohead recently posted..How to Buy on Ebay: A Beginners GuideMy Profile

    • 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.

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

  17. 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.
    DC @ Young Adult Money recently posted..5 Ways to Relieve Stress on a BudgetMy Profile

  18. 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.

  19. 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. :-(
    Laurie @thefrugalfarmer recently posted..How and Why You Should Get Out of Debt: Part 3, Staying the CourseMy Profile

    • 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.

  20. 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!
    Jim recently posted..The Path To A Thicker Wallet Has To Include A Financial RoutineMy Profile

    • 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.

  21. 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?
    Michael @ The Student Loan Sherpa recently posted..Putting an End to the “Good Debt” MythMy Profile

  22. 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.

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