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People are Struggling to Save Money
Studies have suggested that 25% of adults are struggling to save money. This has been put down to highly monthly outgoings and clearing debts but can more be done? There are still those individuals who have enough disposable income to save but are unable to manage their money. This is a problem that is experienced in the UK but is also experienced on an international scale.
In the US, only 6.5% of people are able to save their disposable income, with 40% of US adults lacking in savings to the point where they would be unable to cover an emergency worth $400.
In the UK, only 4.8% of people are able to save their disposable income which is the lowest figure since records began. Things look slightly better in both France and Germany where the figures sit at 15.25% and 10.9% respectively. This increase from the figures seen in the UK and the US has been put down to cultural ideals whereby saving is considered to be the right thing to do.
In times gone by, saving for an emergency was the thing to do but the entire financial situation for many has changed. People are borrowing more money to live the lifestyle they want and that is where money management and cultural choices have to change. Many people choose to “live for today because tomorrow might never come” but the reality for many is that tomorrow does come. This has resulted in fewer households saving money, a problem which is clearly not just seen in the UK but internationally.
It seems as though the cost of living across the world is changing. There is also this idea that people have to own the latest technology and live a lifestyle that is sometimes beyond their means. All of this is causing them to spend their savings and take out loans to cover the cost. What’s more, people are also blaming poor interest rates as to why they are no longer saving.
However, whether it is a cultural decision or an economic decision, it seems as though fewer people are choosing to save. Despite this, if people managed their money better and gained the correct financial advice, they could increase their savings and live a life that is financially stable.