Comments on: Americans Are Saving More. Are You?

By: Subba

Subba — Sat, 04 Jul 2009 14:55:47 +0000

We are saving about 20% of our after tax pay. This is in addition to the 6% of the before tax income that goes into 401k.

Unfortunately this is down from six months ago as a result of my employer cutting pay by 10% (which has pretty much cut into savings rate, since we have not cut into our spending) and also not putting in the 3% 401k match.

Overall I think my raw dollar savings has gone down ~30% as a result

By: Damon_Day

Damon_Day — Fri, 03 Jul 2009 11:07:30 +0000

I think the problem is the assumption that we need to keep spending to be prosperous. At some point we switched from a production nation into a consumption nation. I fear that will be our eventual downfall if we do not change. The government telling us to keep spending for the good of the nation would be like you advising someone drowning in debt to apply for more cards and keep buying stuff. It is insane. We need to stop buying junk and start figuring out what we can produce and export or produce and sell domestically.

By: Jenni

Jenni — Wed, 01 Jul 2009 13:35:14 +0000

As much as I try to be frugal, I am not; and yet, I am able to save on average 58%, with 26% going to my 401k. The current economic conditions have no effect on my savings rate, but they have pushed me to look into additional income.

By: Retireby35

Retireby35 — Wed, 01 Jul 2009 01:16:48 +0000

Definitely saving more. In cash alone I save 13% of my gross income and I'm prepaying my rental mortgage while also maxing out 401k. I'm trying to use as little discretionary income as I can. The economy is too unstable to spend like before.

By: LegalTherapy

LegalTherapy — Tue, 30 Jun 2009 15:54:36 +0000

We probably save about half.

By: JLP

JLP — Tue, 30 Jun 2009 12:54:19 +0000

LOL,

I meant to delete Mark’s comment but forgot.

I can’t believe that he doesn’t know it’s in poor taste to do that.

By: LOL

LOL — Tue, 30 Jun 2009 12:47:01 +0000

Mike Pastore: What is with the lame advertisement for your own blog?

By: MLR

MLR — Mon, 29 Jun 2009 23:25:20 +0000

http://www.frbsf.org/publications/economics/lette...

By: Mike Pastore

Mike Pastore — Mon, 29 Jun 2009 22:44:56 +0000

Saving some from your income is very necessary not only during recession but throughout your life. Like the economy, you'll never know when it shoots high or when it hits the ground. Whatever your income is, may it be big or small, you have to save a percentage of it for your future needs.

For tips on personal finance, visit http://www.mikesmillions.com/blog.

By: mark

mark — Mon, 29 Jun 2009 21:44:15 +0000

Counterintuitive as it is, I don't believe the personal savings rate — as calculated by the federal government — includes retirement savings, notably 401(k) investments.
Can we establish the precise definition of the stat?
Someone out there know definitively?