Top 5 Personal Finance Statistics You Need to Know in 2021
Personal finance is all about managing your finances, investments, and savings effectively. While some are experts in managing their personal finances, others struggle to keep their finances in check. With the onset of 2021, it’s important to know about the personal finance statistics that can help you make better financial decisions and improve your financial stability. In this article, we’ll discuss the top 5 personal finance statistics that you need to know in 2021.
1. Over 40% of Americans Don’t Have $400 for Emergencies
According to a recent survey conducted by the Federal Reserve, over 40% of Americans don’t have $400 saved for emergencies. This highlights the importance of having an emergency fund, which can help you during unforeseen circumstances. It’s recommended to have at least 3-6 months of living expenses saved in an emergency fund to help you during tough times.
2. Average American Has $38,000 in Personal Debt
Another important personal finance statistic to keep in mind is the average American’s personal debt. According to a recent study, the average American has around $38,000 in personal debt, excluding mortgages. This includes credit card debt, student loans, car loans, etc. To manage your personal debt effectively, it’s recommended to create a budget and prioritize paying off high-interest debt first.
3. Only 32% of Americans Have a Written Financial Plan
Having a written financial plan can help you achieve your financial goals effectively. However, a recent study conducted by the National Bureau of Economic Research found that only 32% of Americans have a written financial plan. Creating a financial plan can help you identify your financial goals and create a roadmap to achieve them.
4. 60% of Americans Don’t Know Their Credit Score
Your credit score is an important factor that determines your creditworthiness when applying for loans or credit cards. However, a recent survey found that 60% of Americans don’t know their credit score. Knowing your credit score can help you take proactive steps to improve it and increase your chances of getting approved for loans and credit cards at lower interest rates.
5. Nearly 70% of Americans Haven’t Maximized Their Retirement Contributions
Planning for your retirement is an important aspect of personal finance. However, a recent survey found that nearly 70% of Americans haven’t maximized their retirement contributions. To prepare for retirement, it’s recommended to contribute the maximum amount allowed to your 401(k) or IRA, which can help you build a strong retirement fund.
Conclusion
Personal finance is an important aspect of our lives that requires careful planning and execution. Knowing the key personal finance statistics discussed in this article can help you improve your financial stability, manage your debt effectively, and plan for your retirement. By creating a budget, having an emergency fund, and creating a financial plan, you can achieve your financial goals and secure your financial future.
