Fewer than 40 percent of Americans can afford an unexpected $1,000 emergency. This will surely be catastrophic! You may be surprised that living beyond your means isn't only about Millennials buying $4 lattes! Personal Savings Expert Stephanie O'Connell says over half of Boomers don't have much in savings either. "If they had sacrificed their own savings and/or retirement to help their children or grandchildren, they are going to be in a tough position now." O'Connell says those in their 40s and 50s are laden with payments and can't seem to save. "What we're seeing is this mass adoption of financing. It leads people to think they can afford more than they actually can." O'Connell says the lack of financial basics are unknown to even recent high school graduates. "A 17-year old signing on the dotted line for a $100,000 loan - to really understand what that means to their future life is truly essential. That's not happening now!."
O'Connell says easily available credit seems to be an easy way to have what you want - and not necessarily what you need.. and those monthly payments can eat up a paycheck. On the other hand, she says steadily putting money away - no matter how small the amount - will save you from a disastrously rainy day. O'Connell says the habit of saving steadily is more beneficial than how much you save.