A recent column brought a flood of messages to my inbox, most of them with the same message that goes something like this: I want to save, I need to save, but I don’t have any money to save! How can I even get started when I am so close to the edge?
First, let’s review: When it comes to saving money, we Americans are a pathetic lot. Here we are, blessed with the highest per-capita income on the face of the earth, yet most recent data show that, as of May, the personal saving rate for American households is 3.9 percent. This means that on average, Americans are saving 3.9 percent of their disposable income—the income left after paying taxes and essential expenses—which is notably lower than the long-term average of 8.46 percent, indicating a trend of reduced savings compared to historical norms.
