Americans Continue To Be Worst Savers

[jeffrey]

According to a new ACNielson survey, people in the US are the most cash strapped people in the world with 22% saying they have no money left after they have paid for their essential living expenses. This ties the US for the number-one spot with Portugal.

While the numbers are nothing to smile about, there are a few positive signs within the numbers. The 22% that don't have any spare cash is down 6% from 28% who reported they didn't have any extra money in May 2005. In addition, among those that do have extra money, more are paying down credit card debt (42% compared to 37% in May 2005) and putting money into savings (35% compared to 23% in May 2005). Still, only 11% are using extra money to put into a retirement account and 12% into stocks or mutual funds.

For the first time, the survey asked respondents what steps they take to keep their budgets balanced. The number-one strategy was to cut back on eating restaurant prepared meals. More than half also said that they save on gas and electricity, spend less on outside entertainment and reduce the amount they spend on new clothes to keep their budget balanced.

[Snoopy2645]

I have to wonder if its not because americans have so many more essiantials than other countries. In the US cable tv is an essential a "BRAND NEW CAR" is an essitianl w/ that comes gas & full coverage ins of course. Americans must have the internet & of course cell phones!!! And probably some type of subscription to programs like blockbuster or netflix now has for a once a month fee. Then thier is daycare costs because so many moms work outside the home which probably wouldnt be an essiantial if they dropped the cell & cable!! Then of course we have all the other essintails we THINK that we need.