A quarterly report from the Federal Reserve released on Thursday revealed that Americans actually got a little richer in the fourth quarter of 2009. In that quarter, U.S. households saw a total net worth of $54.18 trillion, which was a 1.3 percent increase from the third quarter worth of $53.49 trillion.
As a result, the net worth for 2009 increased a total of 5.9 percent. This is great news for those who have struggled with personal finance since the economy toppled in 2008 and were looking for some hope for 2010.
Where is the Net Worth Coming From?
In the fourth quarter of 2009, a large chunk of the increase in net worth (which includes assets like home equity, minus liabilities like mortgage debt) came from a drop in household debt, which was the first since 1945. Unfortunately, this is not the best news for the economy because it means that an increasing number of people defaulted on mortgage and credit card debts.
However, on the better side of things, consumers are handling their personal finance obligations more responsibly, resulting in them making a stronger contribution to recovery.
Did You Feel Richer in 2009?
Numbers from the government have a tendency to paint a different picture than what individuals actually felt during the same time period. With unemployment still high and workers still losing their jobs, it’s hard to feel that the economy is getting better, even if the household net worth increased on a national scale.
It’s very possible that you still have to tighten the reins on your budget to make your personal finance obligations work for you. However, it’s good to know that somewhere in the nation, Americans got a little richer at the end of 2009.
If you need help putting a stop to your spending, check out one of these savings accounts.
