The savings rate in 2005 was negative 0.4 percent.”
Well, the way the government measures savings is directly at fault.
“Personal savings rate is calculated by subtracting the amount of spending from the amount of after-tax income. A negative savings rate means that consumers are spending more money than they have. The personal savings rate does not account for any money gained through investments or assets.” It has gone into savings.
4) Social Security isn’t counted.
Isn’t that 15% mandatory deduction another source of savings? Why isn’t it counted in the savings rate?
6) Stock investment. By conservative estimates 50% of Americans are currently invested in the stock market. But the aggregate of their investment is not included in the government’s measure of savings. Neither are tax deferred retirement plans like Roth and Traditional IRAs, pension plans, profit sharing plans, 401Ks, medical savings accounts, 403 b7′s and a plethora of other retirement account types that would look like savings to any rational individual. I put money in there most months, I consider it savings, my ‘emergency’ savings…why isn’t it being counted?
Many Americans have found more sophisticated ways to save, to pile up their money for retirement, to avoid anemic bank interest rates and sidestep excessive interest charged by credit card companies… and none of these savings show up in the government’s numbers.
More Financial DeBunking – The Secret Savings Accounts of Smart Americans
Step 1. If you already have insurance with a company, the best way to save on additional coverage would be to consult your agent. For example, if you have homeowner’s insurance, adding an auto policy can save you hundreds of dollars off the next cheapest quote. What if you don’t have any current insurance policies? Many brokerage companies existing online give you side by side comparisons of rates and benefits. Only choose companies with which you are familiar. If you get the word that a particular company is supposed to have great rates, check them out. Bottom line: compare, compare, compare!
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