It isn’t often that you are met with a money statistic that is alarming in a good way.
This one is a real eye opener and is totally underscored with positivity when it comes to saving money and being able to have the most optimistic eyes for the future.
More than half of the population in their early 30s is budgeting how much they make, what they spend and have a generally good grasp on their money.
This, of course, is a radical departure from what we’re told about money and being able to save it overall as Americans. About 50 percent of the population has zero dollars in a savings account and admit they couldn’t afford to take care of an emergency should it crop up, whether it’s a home repair or a car that is on the fritz.
But leave it to the younger generation to start reversing the trend.
Or, so we think?
The latter stat, the one about the zero dollars in the average saving account, takes into consider all ages, so the question remains: if the early 30 crowd is doing so well, why is our average so bad when it comes to saving money?
The answer really lies on the transition from early 30s to mid to late 30s and beyond, most notably the 40 something crowd. If you’re 32 years old, for example, and you’re living modestly and sticking to a budget and saving money, what changes in the next decade or so.
Perhaps having children, getting married, buying a home, moving for a new job or other life changing events alters how you feel about money and, more specifically, your lack of being able to save and propensity in turn to borrow.
The average household carries nearly $25,000 in unsecured debt, and a good portion of that is made up of the 40 plus year old crowd.
Could it be possible that the savvy, astute 30 something year old crowd in their youth lived below their means but then did a complete 180 when it came to money as a result of family, marriage and home buying.
If you’re in your early 30s and you had a used car (no car payment or you valued a lower priced vehicle versus a car payment) and you had rent that was feasible if not a steal, why wouldn’t you stick to the used car mentality and buy a first or even second home that was far under the total amount you were approved for?
Just because your life changes doesn’t mean your thoughts on money, budgeting and living under a certain expense number should. That first house after marriage can be a starter and ender at the right price. A few kids doesn’t mean you have to invest in a $50,000 mini van when a used one still has enough space, bells and even whistles to suffice.
The money mentality should remain constant, even if nothing else really does.