If you think that you don’t need to save money because you are comfortable with your income and expenses, the reality might surprise you. The #1 reason to save money is uncertainty. Anything can happen.
Example: California couple Steve and Darnelle Mason lost their 23 year old daughter Laura to sudden death in 2007. Steve co-signed for his daughter’s student loans and now he is stuck with the outstanding debt. The couple has already depleted their retirement savings to try to make payments on the $100,000 in debt. That debt has ballooned to $200,000 and they are raising Laura’s 3 children. Their seems to be no relief in sight for the Mason family. The Masons admit they did not have enough money saved to begin with. Read the complete story here.
The sad reality is this can happen to anyone at anytime along with a variety of other issues considering financial uncertainty.
Shocking Statistics:Provided by Economy Watch.
- 50% of Americans have less than 1 month’s income saved for a rainy day.
- Bachelor Degree holders earn US$25,000 more per year than high school diploma holders. However 2 million fresh graduates are fresh out of jobs, 317,000 waiters have college degrees.
- The average student loan is US$23,186. Americans collectively owe more than $875 billion on student loans.
- 56% percent of people have no idea their credit score is the most important factor for applying for a mortgage, car loan and new credit card.
- You can save $112,000 over a lifetime by bringing your lunch to work.
- 61% percent of Americans live paycheck to paycheck, up from 49 percent last year – more than 1 in 5 earn $100K or more.
- 32% percent of home loan applications were rejected last year.
- In 2008, US credit card debt reached $972. 73 billion. The average credit debt per household was $8,329. How does your household debt compare?