If someone asks you about the average salary in your country, you will probably give some numbers in response. But what about personal finance? Do we all really know anything about the average income of those working in different industries, the extent of other people’s debts, and the wealth of people around us? Take a look at the statistics that might surprise you.
As many as 40% of student loan borrowers don’t pay it off
According to the Wall Street Journal, most people in the U.S. need a loan to get an education. But when you are 18 or 20, you cannot guarantee to be able to pay everything off later. According to the research performed by the Global Financial Literacy Excellence Center, 54% of student loan holders didn’t even try to calculate their future monthly payments before borrowing money from the banks. Interestingly, women in the US hold about two-thirds of the $1.54 trillion student loan debt.
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Around 18% of people earning $100,000+ don’t have savings
If you earn from two to five thousand dollars per month, spending it before the next payroll might be okay. But what if your monthly income is $100,000 or even higher? One in five people in the US manages to spend all the money during the next 30 days after getting a paycheck. Here is one more fact that might surprise you — about 58% of people with a monthly income of more than $100,000 said they are not saving enough for retirement.
Average American saves less than 5%
Take this fact as a reminder that you need to have savings for a rainy day. As much as 5% of your income is not enough to ensure a comfortable retirement or feel confident when bumping into an emergency. To be ready for unexpected expenses, you should save from 10% to 15% of your disposable income. You can also hire a personal financial advisor and ask him to calculate the amount you have to lay aside every month.
23% of Americans don’t have any retirement plan
While some people are worried because they do not have enough savings for their retirement, others do not think about it at all. Meanwhile, the cost of living is growing fast. Some statistics claim that Millennials might need about $2.5 million to retire. Astoundingly, a retirement plan of more than 70% of Americans is to simply keep working.
Knowing how to manage your finances is essential no matter how old you are. Intelligent money management is what you need to have up your sleeve, whatever happens. If you are still off the road, know you are not the only one and that it’s never too late to start.
Story by John Brown. John is a financial analyst but also a man of different interests. He enjoys writing about money and giving financial tips, but he can also dive into relationships, sports, gaming, and other topics. He lives in New York with his wife and a cat.