“The percentage of people who have adequate savings to cover six months of expenses — a six-month-stash — has jumped to 31%, according to a new study from Bankrate.com. That’s up from 28% last year and 22% in 2015.
“Not everyone is there yet: a quarter of Americans still have no savings at all. But that is down from 28% last year and the report shows positive signs that saving habits are improving” (Bahney, Anna. “Americans are saving (a little) more.” money.cnn.com/2017/06/20/pf/emergency-fund).
Apparently, it’s the younger people and the middle-class that are doing well at saving; read more of this article at money.cnn.com.
In a Bankrate survey, half of Americans are saving 5% or less of their income, with only a quarter saving 10% or more.
That’s far below the recommended 15% savings that Bankrate recommends — only about 1 in 7 Americans are saving that much.
The middle class appears to be doing the most saving, with 35% of income earners of $50,000 to $74,999 annually saving more than 10%. Those in the $75,000+ annual wage bracket are a close second, with 32% saving 10% or more of their income.
If you’re looking to purchase a home in the near future, start planning now on what you need to do before actually looking for a home.
There’s a lot on your to-do list when it comes time to buy a home, but you can avoid making some big mistakes and hurdles by realizing these five helpful pieces of information (tips from the Bankrate’s helpful article here: “5 first-time homebuyer mistakes“):
Realize that you’ll be paying more than just mortgage payments
Get loan preapproval before starting the house hunt
Get professional help from a real estate agent (In San Diego County and don’t have a Realtor? Call me at (619) 890-3648!), loan agent, and perhaps a lawyer)
Don’t use all your savings on the down payment
Wait until you’ve officially closed to make any other big purchases
Bankrate’s article is full of many more details and information on these tips, so click over to their website and read their article here: “5 first-time homebuyer mistakes“.