New data shows fewer people have savings to fall back on
PADUCAH, Ky. - New figures from the Corporation for Enterprise Development show, people in all four of the WPSD Local 6 states aren't on good financial footing. It's something financial advisers say can be fixed with a bit of discipline.
Just like girls and sports, David Grief and his son 23-year-old son Joshua talk about finances over burgers and fries. David said, "I tell him my life history and my life stories about what happened to me and what I think's the best."
David said he's been saving up money since he was his son's age, and that's the same thing he tells Joshua to do. Joshua said, "I listen to everything he says and it means something to me. I'm still gonna do really what I ought to do, but he influences that."
Financial Consultant Larry Housman said the duo have the right idea. "Savings, a 401k plan, these things give you choices in life, and that's really what it's about," he said.
But, the number of people who have a nest egg is shrinking. It's something Housman said spells financial disaster. "You've put yourself in a position that's vulnerable by not putting money back on a monthly or weekly basis," said Housman.
His advice is for people to start small. He said, "Go in and just put back $20 a pay check. See if that actually impacts your paycheck. My guess is it won't." Grief's plan is a little more aggressive. He said, "Take half your salary and put it in the bank. Sounds crazy, but you can do it."
Grief said, for him, it was worth it. "When your finances are right, you feel good," he said.
Debt is another issue. Rule number one is to pay that off first, starting with your highest interest payments. However, Housman is also a big proponent of investing in a 401-k plan if it's offered through your employer, especially if they'll match the amount you put in. He said it's a sacrifice now that pays off big time in the long run.