Personal Savings Rate
The news this week was all about inflation coming in higher than expected in August. The CPI seems to be the big data point driving economic policy but there is a stat that actually hits closer to home: the personal saving rate. The personal saving rate is the percentage of household income that is left over after all bills, expenses, and taxes are paid. See back in 2020, the saving rate hit its highest mark in history during covid when spending was cut significantly. Now that were spending again and prices are up, the saving rate has dropped to the lowest level in over 10 years. You gotta buy groceries, you gotta pay the IRS, but the one factor that millions of americans can change is the amount of debt they carry. Low mortgage rates often save homeowners a couple hundred dollars on their house payment but even with rates rising, cash out debt consolidation loans have been saving our clients thousands of dollars per month. If you have credit card or personal debt, don’t be deterred by high rates. Freeing up cash is the key to financial stability in an unstable economy. Give us a call to see how much you can save.