Real Estate Info & FAQ

American's no longer saving for a rainy day!

I heard a story on the radio this morning and found an article on VOA NEWS. Last year, the national average personal savings rate was at a 70-year low of NEGATIVE 1%. That is absolutely astounding that on average, a person earning $80,000 would have spent $80,800. They are going in the whole. I am not sure if this factors in retirement accounts like 401K's, but I know of many people that have taken loans against those retirement accounts.

This underscores a post I made in the past regarding saving some money in a liquid side account and calling it you "Mortgage Reduction Account". I would recommend this instead of sending extra money to the lender. This side account is liquid and can be a safe account (like a simple savings account, money market or CD) or something more aggressive. But it is yours! And, it increases your savings rate.

Life happens and this average American that this article talks about is going to be in trouble when it does, because they will have no choice but to go even deeper into debt.

Labels: Buyers, Family, Financing, Mortgage Planning

posted by jkballentine @ 1:14 PM