Lowest Income Bracket Earners Need to Cut Back on Financial Vices: Bankrate Report
Americans in the lowest income bracket, those who make $30,000 and less, spend 13 percent of their annual income on restaurant food, prepared drinks -- like coffee and smoothies -- and lottery tickets, finds a Bankrate.com report.
One of the biggest concerns is how often low income earners play the lottery, with 28 percent of them playing once a week. Bankrate.com analysts say while the idea of striking it rich can be tempting, putting the money spent on tickets in a high yield savings account will give a guaranteed return.
They also recommend those in the lowest income bracket cut back on financial vices and build an emergency savings account to cover six months’ worth of expenses.