NFCC Underscores the Necessity of Saving
Many consumers are on the ropes financially. This situation is perhaps hardest for those who feel as though they've done everything right. After all, the experts told us to:
· buy a home, as it's a great wealth-building tool;
· invest in our retirement account, setting aside money for the days we can no longer work; and
· open credit card accounts in order to build a solid credit rating.
Now, after having followed the advice, these same consumers discover that:
· even if we're able to afford the mortgage payment, our home is worth less than we paid for it;
· the value of our retirement investments has dwindled; and
· lines of credit are being lowered while the interest rate on our credit card is being raised.
There is one missing bit of advice, however, and if consumers had embraced it as they did the others, we wouldn't be feeling so much financial pain today. The one area we failed to include is savings.
The problem is that when money is tight, it's very hard to think about saving, but it is critical that consumers find a way to build a rainy day fund, and then address the larger issue of saving three to six months income.
The NFCC suggests the following ways to begin saving: