Tuesday, September 24, 2019

The Key to Long-Term Savings

What's the best way to save money over the long haul? Housing is the biggest part of most Americans’ budgets; the average American household spends a total of roughly $60,000 per year; nearly $20,000 of that spending is on housing, government data shows.

And now, new research from TD Ameritrade — which looks at people who save 20 percent or more of their incomes, called “super savers” — shows that the single biggest difference between what super savers spent less on was housing. Super savers spent just 14 percent of their incomes on housing, while regular folks dropped 23 percent.

What’s more, research released this week by the Principal found that more than four in 10 people who fully funded or were very close to fully funding their 401(k)s said that one of the sacrifices they made to save so much was that they lived in a modest home.

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