Only 41% of Black Americans are saving for retirement and 73% of us don’t have enough savings to cover 3 months worth of expenses. These numbers don't show is that many of us have life circumstances that make it hard to save money.
So what if we don’t have any savings?
It’s recommended to put aside 10-15% of annual income as savings but honestly, whatever can be managed is better than nothing. Savings accounts with automatic transfers move a predetermined amount automatically on a set interval. It’s easy and low-stakes.
There are other options too.
Money market funds or accounts earn additional money each month from high interest rates while they hold a balance. Most of them have a minimum balance requirement but an 8-10% return over time is nothing to sneeze at.
What about retirement savings?
401k and IRA contributions are crucial for retirement savings. Can't afford to set aside 15-20% of income now? Then start smaller. Amounts can gradually be increased.
It's hard even to contemplate setting vital money aside for future situations that may or may not arise - especially given the lack of equitable pay and other systemic barriers we face. But to move beyond this unjust and broken system, realize that even saving a few dollars can make a big difference.