A recent survey has shown that 66 percent of Americans are cutting down on their monthly spending. Thirty-six percent of Americans are cutting their spending so that they can save more money. Greg McBride is a chief financial analyst for Bankrate. He stated that these numbers reflect that money is tight for a lot of people.
Greg also stated that people have under-saved, and their income has not increased. Many people do not have anything to fall back on if they lose their jobs. That is why more people are trying to cut their spending.
Interestingly, the survey showed that millennials are the most likely to save. Forty-six percent of millennials stated that they are trying to cut back on their spending. Only 41 percent of Generation X is reducing their spending.
Only 27 percent of baby boomers stated that they were spending less so that they can save more. Greg stated that younger generations are more likely to save today than they were in the past. He also stated that younger people are more likely to save because they are concerned about a potential financial crisis.
The burden of debt is another reason people are reducing their spending. Seventeen percent of Americans stated that they are spending less money so that they can pay off their debts. It can be hard to save money and pay off debt at the same time. However, Greg has some tips that will help.
Sixty percent of people do not have at least $1,000 in their emergency fund. Greg recommends that people build up their savings by paying themselves first. He advises against waiting until the end of the month because you may not have anything left over. He also recommends that you set up automatic transfers from your checking account to your savings account.