35% of Americans Are ‘Very’ or ‘Completely Dissatisfied’ With Their Savings — This Is Why

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35% of Americans Are ‘Very’ or ‘Completely Dissatisfied’ With Their Savings — This Is Why

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In a recent Yahoo Finance-Marist Poll survey, 35% of respondents said they are “very or completely dissatisfied” with their

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Respondents cited various factors preventing them from saving money. For 47% of respondents, the cost of living was the most significant barrier. Other common reasons included unexpected bills or expenses (11%), too many financial obligations (10%) and a change in income or employment status (10%), according to the survey.

Michael Neuenschwander, a certified financial planner and the founder and principal owner of

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Wealth Advisors in Houston, told GOBankingRates that during the COVID-19 pandemic, savings rates were higher because many people received stimulus checks and were unable to go out and spend money.

Neuenschwander also explained that the aftermath of the pandemic and other factors, such as inflation and debt, have contributed to lower savings rates. According to data from the Federal Reserve Bank of St. Louis, in December 2024, the personal savings rate hit 3.8%. By contrast, in December 2020, it was 11.8%. This, along with personal ideologies, has contributed to a nationwide debt problem.

People, Neuenschwander said, “live for today” — “somewhat out of necessity,” but also “somewhat out of just choices they make.”

“There are things that can be done, but people have to look honestly at where the money goes and begin to set some priorities,” he said.

These are some tactics he outlined for

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If you’re unhappy with your savings, you can take steps to increase them.

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Neuenschwander advised reviewing credit cards and identifying those with the highest interest rates.

“Make a strategy to pay off the ones that cost you the most first,” he said. “And it’s called a snowball effect, but if you pay off the one with the highest interest first, now you have more money to go toward the next one, etc.”

He noted that people can adjust their budgets by canceling streaming services and cutting back on clothing purchases. He also suggested considering whether an expense is a need or a want. For instance, if you need a car for “basic transportation” and aren’t a car enthusiast, then you should “free up the money for the stuff you do care about” or “the goals you have.”

“It’s really about making choices and looking and saying, ‘What can you afford today?’ Also, in making those decisions, what are the ramifications over the next three to five years?” Neuenschwander said.

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Regarding housing, Neuenschwander noted that many younger adults are opting to live at home or have roommates, which can be a “

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early on.” Given high home prices, if you’re in the market for your first home, avoid the mindset that your starter home must be one you absolutely love or that you’re going to be there forever. Spending too much on housing, he warned, can “rob you of opportunity” in “other areas” of your life.

Neuenschwander also advised evaluating insurance costs. For example, if you have homeowners insurance, consider raising your deductible. If you’re getting health insurance through the Marketplace rather than an employer, the amount you pay depends on your income — so consulting a CPA might help ensure you’re taking advantage of all tax deductions.

As for taxes, contributing to

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can lower your taxable income while helping you build retirement savings. Neuenschwander said that if your employer offers a 401(k) match, you should contribute at least enough to receive the match.

Earning more can help increase your savings.

Neuenschwander said that if you’re dissatisfied with your take-home pay, consider ways to increase it — either with your current employer or elsewhere. Nowadays, he said, getting a “

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” usually comes from switching jobs. While frequent job-hopping isn’t advisable, he recommended reassessing your market value “every three to five years.”

He also suggested creating a second income stream, as many people have turned a passion into a side business.

Neuenschwander stressed the importance of building an emergency fund first. Having three to six months’ worth of expenses saved is a good rule of thumb, he said, because “if something does come up,” you can “access” those funds without early withdrawal penalties — something you’d likely face if pulling money from certain retirement accounts early.

However, he emphasized that the amount you should save shouldn’t be “as much tied to what your paycheck is” but rather to your expenses. Whether you’re retired or still working is another factor. A retiree receiving Social Security will still have some income, whereas someone who loses a paycheck entirely won’t.

Neuenschwander recommended a three-tier approach to cash allocation:

Use a regular checking account for daily expenses.

Use a basic savings account for short-term funds you may need to move around quickly.

For emergency funds, opt for money market funds or online savings accounts with higher interest rates that allow access to money within a few days.

“Then the idea is once you have those done, you can focus on what I would call the real retirement — the investment money,” Neuenschwander said, recommending growth-oriented investments through ETFs or index funds.

“You’re going to have some ups and downs in the market, but historically, the market is generally up seven out of 10 years,” he said.

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