Danielle Robison explains why China has a much higher savings rate than the US. The key difference: Chinese culture treats savings as a fixed expense that comes first, before spending on wants. This habit leads to greater financial security and earlier retirement.
45.9%
3.8%
60 for men and 55 for women
People in China save an average of 45.9% of their take home pay compared to only 3.8% here in the United States. Here's how you can use the Chinese secret to save over 10 times more than the average American. Here's the secret sauce. It's all about prioritizing your savings in China. Their ultra high savings percentage doesn't happen by chance. It's a mix of cultural wisdom and smart habits. Here's how you can do it. Treat your savings like a bill that must be paid. Your house, your utilities, your car and yourself should be paid first. Once you and your bills are paid paid only then you can move on to the wants. And this is what Americans have backwards we spend first and save the little of what's left over whereas the Chinese save first and spend the little of what's left over. It's no wonder why the Chinese retirement age is among the world's lowest 60 for men and 55 for women.
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