Americans struggle to save money for many reasons. Many have too much credit card debt or they simply don’t make enough money.
Allstate Financial’s “Life Tracks” poll recently found that only 50 percent of Americans have money left over each month after paying their essential expenses. Meanwhile, 41 percent said they live paycheck-to-paycheck and 8 percent don’t even earn enough money to cover their monthly basic expenses.
“This second Allstate Life Tracks Poll takes the pulse of Americans to measure the health of their personal financial situations,” said Don Civgin, president and CEO of Allstate Financial. “Too many Americans are faced with financial challenges today that lead to an unstable future.”
Additionally, the poll found that many people are “treading water” when it comes to their debt. More than four in five Americans said they make some sort of debt payment each month. About half said they pay credit card debt, 43 percent make mortgage payments, followed by car, student loan and medical payments.
No matter what type of situation people may find themselves in, having an adequate savings account is essential to their financial health.
Here are some simple ways that people can put money away to create a financial safety net:
Collect loose change – While it may not seem like much, simply collecting loose change can be a good way to start saving. This can add up overtime and be a good beginning to a savings account. As soon as you have enough, go to the bank and ask for some coin rolls, so you can roll them up and deposit them into your account.
Find an expense to cut – Many people have at least one expense that they don’t need, which is one of the reasons they don’t have extra money to save. For example, if you still have a landline, it may be time to cut the service. With the popularity of cell phones, a home phone has become unnecessary, so you could save yourself money by getting rid your landline. The extra money you save can be put into your savings account.
Sell your stuff – If you have a lot of junk laying around somewhere, look to see if there is anything valuable. If there is, you could get yourself some money by selling these items at online auction sites, such as eBay.