Illinois Bankruptcy Lawyers Urge Americans to Save More Money
The savings rate in America has soared to an average of 4 percent - for every $100 we receive, four bucks are being tucked away for the future. Think $4 doesn't sound like much? Compared to the paltry 1 percent we were stashing just a couple years ago, we've quadrupled our savings.
We're starting to wake up and realize that we can't put savings on autopilot. I used to count my automatic 401K contribution as my monthly savings so I would have more of my paycheck to spend. I figured a retirement account was relatively safe. But I was forgetting the first lesson of investment 101: Don't put all your eggs in one basket.
Fortunately, I got wise a few years ago and starting depositing a little bit of (almost) every paycheck into my savings account. Some of it stayed there, some went into CDs (the rates aren't the best, but hey, at least I didn't lose money) and most went to stocks (which actually didn't do as badly as my 401K when the market crashed). But I could have earned a lot more had I begun saving earlier.
Some people worry that investing is a gamble, so they don't save a dime. But while you might not lose money that way, you are guaranteeing you won't gain any. And in a sense, you do lose. Cash is fleeting - once you spend it, it's gone for good. Failure to save is like losing money.
Of course, most savings slackers (my former self included) are used to making excuses - the most common being that they're living paycheck to paycheck as it is. But, like it or not, saving might be the only way to break that cycle. You can either get a huge raise (not likely right now) or figure out how to start spending less.
And the easiest way to spend less is to pay down your debts. Feel like you're in over your head? Bankruptcy can help. Sign up for a free debt analysis with one of our Chicago or Atlanta bankruptcy attorneys. We'll find the right plan for you and guide you through the process. Have questions? We'll answer them - for free.