The Great Recession of 2008 is not usually a topic that I enjoy talking about. There is so much talk about why it occurred and how we aren't doing enough today to make sure it doesn't happen again in the near future. There are also so many differing opinions as to if we are back on our feet or if we are still struck down and have a lot of work to do to get back on our feet. What is your opinion are we back on our feet or not?
One thing I would like to talk about though in regards to the Great Recession of 2008 is what we learned because of that time in our lives. Did we learn anything? Should we have learned anything? According to a new study done by Wells Fargo Millennials learned a very valuable lesson because of the 2008 great recession. Let's dive into the findings.
The biggest thing that Millennials have learned
80% of Millennials say the Great Recession taught them that they must save "now" to be able to "survive" economics problems down the road. This is some very wise information and having had 80% of millenials say that this is what they learned from the recession is a good sign. Saving is the smartest thing you can do for your finances and even better for your retirement. Saving gives you the ability to invest and investing gives you the ability to make more money with your money.
Interesting Facts Learned Through Survey
Only 55% of millennials are actually saving even though 80% reported learning how important saving was.
61% of men and 50% of women reported that they are saving.
About 50% of of all millennials are satisfied with their savings at this point in their lives.
58% of men feel satisfied with their savings while only 41% of women feel satisfied.
Debt Is Making It Hard To Save
4 in 10 say their debt is overwhelming
56% say they are living paycheck to paycheck
Besides paying day-to-day bills student loans are their top concern.
Living paycheck to paycheck can be very stressful and depressing. It makes it really hard to save for things like retirement or even to do things that you enjoy. The advice I would give to those who are in this situation would be to get knowlegable about your spending. Start keeping track of your income and expenses. There are plenty of online tools to help you do this. My personal favorite is Mint. Taking control of your expenses is going to really help you figure out how you can start saving. When looking at your . Do that My bit of advice would be to make sure you know what your debt is. How much do you actually spend? What of those debts are
Of millennials who are saving 46% are saving between 1-5 percent of their income for retirement. 31% are saving between 6-10 percent of their income and 18 percent are saving more than 10 percent.
7 out of 10 millennials feel confident that they will be able to save enough to have the lifestyle they want in the future.
I am encouraged to hear that millennials who are saving are saving a decent amount for retirement. With the way that the trends are going we are bound to have a retirement epidemic where there are many people who don't have enough money for retirement. We still have a long way to go but I am encouraged to hear that millennials are actually saving for retirement.
The biggest advice they would give
"Don't spend more than you earn" is the biggest advice they'd give followed by "Get educated about your personal finances" and "Start saving for retirement now".
I love this advice and I myself agree that one of, if not the best advice I could give anyone financially would be to spend less than you earn. That is such simple advice but it is so important to stick to it. Plenty of people are getting themselves neck deep into debt and are spending way more than they earn. This is not smart. The best thing you can do for your retirement would be to save for it! Start saving for your retirement now before you feel like it is too late. You don't want to feel like you will never retire.
Since we have talked about what the millennials have learned because of the 2008 recession now it makes me wonder what have you learned from the great recession? Is it different than what the millenials learned?
Author: Nick Barker