She Strengthens

The Savings Reality Check for Millennials

A recent survey has shed light on a staggering truth: over half of millennials have less than $1,000 in savings. This statistic brings back memories of the infamous Elite Daily article that sparked outrage by suggesting that saving in your 20s is unnecessary. While many of us were quick to dismiss this idea, it appears that a significant portion of our generation is indeed neglecting their savings.

The Survey Says…

HowMuch.net’s survey of 2,500 millennials aged 18-34 reveals a concerning trend. Nearly half of those earning between $25,000-$49,999 and $50,000-$74,999 have less than $1,000 in savings. In fact, if you make under $75,000 per year and have even $2,000 in your emergency fund, you’re ahead of the majority of millennials.

Income Isn’t Everything

Interestingly, 31% of millennials earning $75,000-$99,000 also have less than $1,000 in savings. This suggests that as income increases, so does spending. It’s crucial to recognize that building a substantial savings account requires discipline and goal-oriented financial planning, regardless of income level.

Setting Realistic Goals

While saving six months’ worth of expenses may seem daunting, especially for those just starting their careers, growing your emergency fund should remain a priority. Many millennials are burdened by student debt and relocation costs, making it challenging to stick to savings goals. However, with determination and creative strategies, meeting aggressive saving targets is achievable.

Breaking the Mold

We’ve seen numerous success stories of individuals who have taken on saving challenges, such as #NoSpendNovember or 30-Day “No Eating Out” challenges. By making savings a priority and finding ways to cut costs, it’s possible to build a robust emergency fund. In fact, I was able to save $8,000 last year by making conscious financial decisions and staying committed to my goals.

The Bigger Picture

While there are limitations to this study, it serves as a valuable reminder to evaluate our own savings progress. Perhaps this survey will inspire you to work harder on your savings in the coming year. Alternatively, it may be a gentle reminder to acknowledge your hard work and progress thus far. Whatever the case, it’s essential to take control of our financial futures and make saving a priority.