In fact, only 38% of respondents said they have enough funds in their bank accounts to cover even the most mundane of spending emergencies. Most others would need to take on debt or cut back elsewhere…The survey found that an unexpected bill would cause 26% to reduce spending elsewhere, while 16% would borrow from family or friends and 12% would put the expense on a credit card. The remainder didn’t know what they would do or would make other arrangements.
This will not end well, for the non-savers or for the economy as a whole.
Most people I talk to are about to start saving any minute now, just as soon as they get a promotion or raise, or pay off their student loans, or one of a million other excuses not to. But there will always be something else taking up your money and attention unless you just force yourself to start saving. That mindset is their problem, not their income or expenses.
What can you do to break out of this? Log into your online banking account right now. If you don’t already have a savings account, open one. If you do, go to your savings account and schedule an automatic transfer from your checking account every month on the day your paycheck is deposited. Even if it’s just $10 per month, you have crossed the line from being a spender to a saver. That is the most important shift people need to make.