In a recent conversation with Chris Wallace on CNN Max, Suze Orman While the stock market is doing well, it doesn’t reflect how most American households are actually doing financially.
“What if I told you that 75% of people in America don’t have $400 to their name in an emergency?” Orman described the financial situation of ordinary Americans as “really, really bad.”
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However we often use the stock market as a benchmark Overall economic healthOrman insists that it does not reliably tell how the everyday American does things. “By and large, the average person in America today is living paycheck to paycheck, and they’re not doing well,” he explained.
As home loans rise and reliance on credit cards increases, it is clear that individuals may be in deep financial trouble. Last summer, American credit card debt It surpassed $1 trillion for the first time, a milestone Orman pointed to as a sign of a larger problem.
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While some sectors of the economy are showing strength, Orman made it clear that inflation remains difficult for most Americans. Appalled by Orman’s statistics, Wallace asked him to elaborate on what he described as a “financial epidemic.”
“We’re in an epidemic because there’s no financial vaccine to cure it,” Orman explained, adding that the crisis won’t be solved by outside forces. The only way forward, he argues, is for individuals to take responsibility for their own financial well-being. “The government isn’t going to save them. The economy isn’t going to save them. They have to be their own fiscal vaccine so to speak.”
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Orman’s stark warning reflects the growing connection between market performance and personal financial health. While stock market gains may boost portfolios for wealthy Americans, many face tough choices, with no security in living paycheck to paycheck.
A recent MarketWatch survey confirms Orman, with nearly two-thirds of Americans feeling they are living paycheck to paycheck.
In response to this crisis, Orman incorporated SecureSave, a business that represents an important component of personal finance: Emergency savings. Through this business, Orman hopes to help people build a financial cushion that can protect them in times of need.
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“The goal of money is to keep you safe,” Orman told Wallace. He explained that SecureSave partners with employers to allow them to automatically save a portion of their paycheck, making it easy to build an emergency fund without having to think about it too much.
Through the program, employees can save as little as $25 per paycheck, and some employers offer to match a portion of those contributions. “Within a year’s time, they have about $1,000,” Orman noted, noting that the goal isn’t to accumulate large sums right away, but to establish saving habits that lead to larger habits, such as saving for retirement.
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These emergency savings accounts are FTIC-insured and employees can access money whenever they need it.
The stock market may perform well, which is great for retirement and investment accounts, but many people lack the basics for emergency savings. Orman’s message is that security doesn’t come from market gains — not that it can’t help — but from developing healthy financial habits, such as emergency savings, that can provide stability in times of uncertainty.
If you’re facing financial uncertainty and don’t know where to start for protection with your own finances, consider talking to someone. Financial Advisor. They will provide advice tailored to your individual situation and help you decide on a plan that matches your financial goals.
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2024-10-01 22:45:23