Forty-seven percent of Americans could not cover an emergency expense of $400, or would have to sell something or borrow money to cover it, according to the Federal Reserve Board’s 2014 Survey of Household Economies and Decisionmaking (SHED). And, of those, 39 percent reported that the biggest emergency cost they could cover with cash or cash equivalent (such as putting it on a credit card and paying it off immediately) was less than $100. For those living paycheck to paycheck, saving for retirement or a child’s education seems like a fantasy. Many Americans believe that the only way they could fund their retirement would be to win the lottery. Meanwhile, another generation is letting critical years slip by as they fail to capitalize on the magic of compound interest.
What’s Your Dream for 2016?
The New Year is the time to make resolutions. It also is usually around the time most people break them. One of the first steps to setting achievable goals is to honestly assess where you are. That might mean that – like 43 percent of those with financial New Year’s resolutions this year – you resolve to set and follow a budget. But your spending is just one aspect of your financial behavior. The Financial Identity quiz is a tool that can help you better understand why you make the financial decisions you make. Based on research, the quiz delivers your unique financial identity: Pathfinder, Nomad, Trooper or Tenderfoot.
No matter what you are dreaming for 2016, give yourself deadlines and keep track of your progress. If you want to better your odds, enlist a friend to help hold you accountable.
So, we’d like to know … What are you dreaming for 2016?