by Jon S. Strebler
The latest report on the savings of Americans came out last week, and it can’t surprise many people to know that at least in this regard, the State of the Union is disturbing. Five years into our recovery from a nasty recession, people are spending more (yea!) but at the expense of their savings accounts. What’s supposed to happen is that we squirrel money away during the good times, i.e. build up our savings, and then draw down on it during tough times. Instead, the pattern seems to be: Dip into savings during recessions and continue dipping into it after things start looking up. Great for American consumerism and the short-run economy, but maybe not the smartest strategy for the long-run.
Only 22% of us have six months’ worth of living expenses tucked away in a safe place, which is the amount of money financial planners suggest ... Log in or subscribe to continue reading.