In a recent conversation with Chris Wallace on CNN Max, Suze Orman He emphasized that while the stock market is performing well, it does not reflect how most American households actually manage their finances.
“What if we told you that 75% of Americans don’t have $400 to their name in case of an emergency?” Orman said, calling the economic situation of ordinary Americans “really, really bad.” Ta.
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We often use the stock market to measure overall financial healthOrman emphasizes that it is not a reliable representation of what everyday Americans are like. “By and large, the average person in America today is living paycheck to paycheck and not doing very well at all,” she explained.
It is clear that as household debt increases and reliance on credit cards increases, individuals may find themselves in a deeper financial crisis. Last summer, us credit card debt Orman pointed to this as a symptom of a larger problem, surpassing $1 trillion for the first time.
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Even though some sectors of the economy are doing well, Orman made it clear that inflation is making it difficult for most Americans to maintain it. Mr. Wallace, surprised by Mr. Orman’s statistics, asked him to elaborate on what Mr. Orman described as a “financial pandemic.”
“We are in a pandemic in that there is no financial vaccine to treat this,” Orman explained, adding that the crisis will not be solved by outside forces. The only way forward, she argues, is for individuals to take responsibility for their own financial well-being. “The government is not going to save them. The economy is not going to save them. They have to become their own economic vaccine, so to speak.”
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Orman’s stark warning reflects the growing disconnect between market performance and personal financial health. While a rising stock market may boost the portfolios of wealthy Americans, many face the difficult choice of living paycheck to paycheck with little safety net.
A recent MarketWatch survey backs up Orman’s opinion, stating that nearly two-thirds of Americans feel like they’re living paycheck to paycheck.
In response to this crisis, Orman co-founded SecureSave, a business that addresses one of the key elements of personal finance. emergency savings. Through his business, Orman hopes to help people build a financial cushion to protect themselves in times of need.
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“The purpose of money is to provide security,” Orman told Wallace. She explained that SecureSave partners with employers to help workers automatically save a portion of their paycheck, making it easier to build an emergency fund without thinking about it too much.
The program allows employees to save small amounts, such as $25 per paycheck, and some employers offer to match a portion of that contribution. “Within a year, they’ll have saved about $1,000,” Orman said, noting that the goal is not to save a lot of money right away, but rather to build savings that lead to bigger habits, such as saving for retirement. It’s about establishing habits, he added.
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These emergency savings accounts are FDIC insured, giving employees access to funds whenever they need it.
The stock market may be strong, which is great for retirement and investment accounts, but many people don’t have the basics of emergency savings. Orman’s message is that security comes not from market profits, which are useless, but by building healthy financial habits, such as emergency savings, that provide stability in times of uncertainty. It means that it will happen.
If you’re facing financial insecurity and aren’t sure where to start building security with your finances, consider talking to a professional. financial advisor. They can provide advice tailored to your unique situation and help you decide on a plan that fits your financial goals.
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