In other words, Americans are currently spending more than they earn. This fact, coupled with the high rate of debt in this country, means that in spite of our strong economy, too many Americans are living on the financial edge. One of the biggest barriers to increasing the nation's savings rate is our high level of debt and the costs of servicing that debt. Inc. Last year, CCCS assisted thousands of families in creating budgets, finding ways to save and developing workable plans to get out of debt. Consumers should always make regular contributions to their savings accounts.
CCCS recommends that consumers save five to ten percent of their take home pay.
The first priority should be to build up an emergency fund - essentially a monetary safety net that can see you through an illness, job layoff or other emergency. Then, start investing and saving for long-term financial goals such as a new home, college or retirement. Saving money each month should be as routine as paying rent. Use automatic deposit and payroll withholding to fund savings accounts. Figure out what you want to save for - and how much you need to set aside.