Americans spend most of their money on three things:
That’s according to a Business Insider report on data from the Bureau of Labor Statistics.
Those three things make up 62% of the average household spend. Other items high on the list include health care, entertainment and clothes.
Spending on health care is also expected to grow by 5.8% until 2025.
Throw in the cost of child care, car repairs and other stuff that inevitably comes up, and it may not be entirely surprising to some that 63% of Americans say they wouldn’t be able to pay for even a $500 emergency.
Given these statistics, there are a lot of people out there who would probably like to have more money for a variety of things.
Take our poll and let us know in what area you would like more money.
The Good and Bad News About How Much We Save
While people may not have as much money as they’d like, for some the savings picture is improving. About a third of Americans have six months of savings stashed away, and they’re also finding ways to save through debt management.
Meanwhile, people are increasingly using personal loans to reach their financial goals while they make up the gap in what they can’t afford.
Still, the majority of Americans struggle to save, as outlined at the beginning of this article.
Part of it may be psychological. We tend to value short-term wants over long-term needs, according to one report. This can lead to some less than ideal decision making, such as spending your paycheck as soon as you get it, or not getting started with an investment account because you don’t want to fill out the paperwork.
Another set of theories focuses on macroeconomic factors. The rate of income growth has slowed, for instance, while expenses for things like housing and medical care continue to rise. Conspicuous consumption – i.e., buying too much stuff – and desire to keep up with those living a lavish lifestyle have also been cited.
How a Personal Loan Could Help You While You Save
There are many ways to start saving. From automated savings to budgeting techniques to high yield savings accounts, you could go on and on listing ways to change your spending habits. However, it will probably take a while to accumulate a sizable pile of cash.
In the meantime, personal loans can help you bridge the gap in a number of ways.
The most common one is probably to consolidate higher interest debt. Bringing your debt together in one monthly payment is a good starting point for getting better with your money.
For a variety of situations in life, a personal loan can be a flexible, convenient way to get more money at a fixed interest rate while you continue to build your nest egg.