Median Household Savings Rate is Zero
But Median-Income Household Should Have $668 Per Month After Bills Are Paid
CHICAGO, May 14, 2014 /PRNewswire/ -- The median household savings rate in America is zero, but after all the bills are paid, a median-income household should have $668 left over each month, according to a new Interest.com analysis of Bureau of Labor Statistics data.
Baltimore has the highest savings opportunity in the nation: the metro area's median after-tax income outpaces the area's typical expenses by $2,021 per month (after accounting for both essential and discretionary expenses). Nearby Washington, D.C. ranks second with $1,664 left over. Cleveland's remainder is the third-highest ($1,294 per month) of the 18 metro areas that Interest.com studied.
Residents of one area, Phoenix, tend to spend more than they take in. The median after-tax income in greater Phoenix is $95 per month less than the area's customary expenses, the worst ranking in the Interest.com study. The Miami area is barely in positive territory ($18 per month). Boston's surplus of $240 per month is the third-lowest in the U.S.
"Many of us feel like we're living paycheck-to-paycheck because of how we choose to spend our money," says Mike Sante, Interest.com's managing editor. "It's not that we can't save. It's that we don't save. It's something we can control and change."
More information is available at:
http://www.interest.com/savings/news/saving-opportunity-study-2014/
Highest Savings Opportunities |
Lowest Savings Opportunities |
||
1. |
Baltimore ($2,021 per month) |
14. |
Detroit ($349 per month) |
2. |
Washington, D.C. ($1,664) |
15. |
San Diego ($344) |
3. |
Cleveland ($1,294) |
16. |
Boston ($240) |
4. |
Chicago ($876) |
17. |
Miami ($18) |
5. |
Dallas ($772) |
18. |
Phoenix (-$95) |
Interest.com based this analysis on the United States Bureau of Labor Statistics' 2012 Consumer Expenditure Surveys. Rather than averages, which the BLS uses, Interest.com converted the data into medians to limit the effects of outliers. Interest.com examined housing, transportation, food, healthcare and other major household costs (including discretionary purchases such as vacations, dining out and more). It subtracted these expenses from each metro area's median after-tax income to derive its proprietary "savings opportunity" figures. Income includes paychecks, self-employment, pensions and retirement savings.
About Interest.com:
Since it was created in 1994, Interest.com has been helping consumers make smart financial decisions. Interest.com's stories, calculators and interest rate tables also appear on the websites of more than 100 newspapers in 31 states, including the Los Angeles Times, the Chicago Tribune and the Dallas Morning News.
Interest.com is owned by Bankrate, Inc., which is among the largest and most trusted providers of personal finance advice and information on the Web.
For More Information:
Ted Rossman
Public Relations Manager
[email protected]
917-368-8635
SOURCE Interest.com
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