financialcounselor

The Security of Savings

In Uncategorized on December 4, 2012 at 9:00 pm
English: This is a chart outlining the histori...

English: This is a chart outlining the historical personal savings rates in United States as compiled by the US Department of Commerce, Bureau of Economic Analysis (Photo credit: Wikipedia)

A High Credit Score is Great, but Money is Better

  Very few of the people I speak to have much money in the bank, and the great majority of my clients tell me they have none. Of course a lot of the time it’s because so many of our clients don’t seek us out until after they’ve exhausted all their money trying to keep up with their debt after it becomes unmanageable. But, many of my clients say they haven’t had money in the bank for a long time. And some tell me they’ve never had any savings. Economists have been warning that Americans as a whole have in recent years come to save very little of their money. According to the Bureau of Economic Analysis, the national savings rate has dipped to as low as 1 percent of income in recent years. The savings rate hasn’t been that low so since the Great Depression.
  That’s where a lot of my clients’ problems come from. Not having any money when some unexpected cost comes up.
  That is the number one way to avoid money problems: Having some money. Saving money is difficult, no doubt about it, what with the sky high cost of living. But money in the bank is a necessity because of life’s unavoidable hiccups. And based on what I see at my job, one of the biggest causes of money problems is not having money saved in the bank to pay for those hiccups. I can’t repeat it enough to my clients, a little money in the bank will help keep the stress away. Because money is security. Just ask anyone who is rich. Keep it in a bank or keep it under a mattress, but always have a stash of money you can access for when life’s unavoidable hiccups occur. Otherwise you might step into a pool of debt just to end up drowning.

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