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Lesko: Savings Habits Putting Americans in Jeopardy?

Posted:
By Fox 40 Staff.
JASON:

COULD AMERICAN’S ATTITUDE TOWARD
SAVINGS BE PUTTING THEM IN JEOPARDY?
GREG LESKO OF LESKO FINANCIAL SAYS
THERE’S BOTH GOOD AND BAD NEWS.
GREG…

GREG:

THANKS JASON. RECENT SURVEYS ON
AMERICANS’ ABILITY TO SAVE—OR LACK
OF IT—REVEALED 4 OUT OF 10 MAKING
GOOD OR EXCELLENT PROGRESS:
SPENDING LESS THAN THEY EARN; ADDING
TO RETIREMENT ACCOUNTS AND SAVING
FOR A RAINY DAY. BUT THAT MEANS THAT
THE OTHER SIX AREN’T DOING SO WELL.

ANOTHER SURVEY SAID ONLY ABOUT half
HAVE MORE MONEY IN AN EMERGENCY
FUND THAN THEY CARRY IN CREDIT CARD
DEBT. WORSE STILL—3 OUT OF 10 SAID
THEY HAVE NO EMERGENCY SAVINGS AT
ALL.

JASON:
WHAT DO THESE RESULTS PREDICT ABOUT
AMERICANS FINANCIAL WELL-BEING?

GREG:
IT COULD BE MORE TROUBLING THAN IT
SEEMS. THOSE WITH NOTHING OR VERY
LITTLE IN THEIR EMERGENCY FUND MIGHT
BE JUST ONE MINOR DISASTER FROM A
SERIOUS SITUATION. IF THE CAR CONKS
OUT, THE ROOF SPRINGS A LEAK OR THE
FURNACE DIES, GOING FURTHER INTO DEBT
TO FIX THE PROBLEM MIGHT PUT THEM
BEHIND ON THEIR BILLS AND THREATEN
THEIR FINANCIAL FUTURE—AT LEAST FOR
A TIME.

JASON:
CAN YOU OFFER ADVICE TO PREVENT THAT HAPPENING?

GREG:
FIRST, PUTTING ENOUGH ASIDE TO DEAL
WITH THE UNEXPECTED NEEDS TO BE A
PRIORITY. ONE WAY TO SAVE IS TO
AUTOMATE IT. HAVE YOUR BANK DEDUCT
SAVINGS DIRECTLY FROM YOUR PAYCHECK
OR CHECKING ACCOUNT. ANOTHER WAY IS
TO TAKE A WINDFALL, SUCH AS A RAISE,
BONUS OR TAX REFUND, AND BANK IT
INSTEAD OF SPENDING IT. AND ANOTHER
GOOD WAY TO BOOST SAVINGS IS TO PUT
MONEY TOWARDS A SPECIFIC GOAL, SUCH
AS A REPLACEMENT VEHICLE OR A HOME
IMPROVEMENT PROJECT.