01-23-25 YMS Where is the money going? National Correspondent RORY O’NEILL looks at where people are putting their money in this paycheck-to-paycheck society.

Where is the money going? National Correspondent RORY O’NEILL looks at where people are putting their money in this paycheck-to-paycheck society. 

 

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Episode Transcript

Speaker 1 (00:00):
Previously on Your Morning Show with Michael Dilchuono.

Speaker 2 (00:04):
Where is the money going? I've been fascinating in dying
to hear this report of yours. So America is perceived
as living paycheck to paycheck in society. Well where are
they putting their money?

Speaker 3 (00:14):
Well, it's not in savings, that's for sure. Actually, this
bank great report out this morning finds that only forty
one percent of us could afford a one thousand dollars
emergency like the car broke down or suddenly you got
to go to the doctor. One thousand bucks, that's it,
and only forty one percent can make that payment in
their savings. The rest probably have to put it on

(00:36):
plastic or go into further debt in order to make that.
And they say inflation for the persistent results of inflation,
that while the numbers are improving, the higher costs are
still there and paychecks haven't kept up, especially them when
it comes to things like your auto insurance or the rent.
Those are the bills that continue to swamp American consumers.

Speaker 2 (00:56):
So some people, of course who own homes and their
homes have appreciated a very high rate, have been using
that home value to offset and borrow from to cover
high cost of living. Those without it simply don't have it.
You know, the old rule of thumb. First, my first
ten percent goes to tithing and I never break that promise.

(01:16):
Learned that lesson a long time ago. But what was
the other one? It was five percent? I think for
short term savings, what you're talking about a reserve account
twenty percent. For your retirements, you.

Speaker 3 (01:34):
Need six months of costs socked away. So whatever it
costs you to live a month, multiply that by six
and have that amount tucked away is the goal for
your emergency fund. So that is an audacious goal for
a lot of Americans think to have six month savings.
But that's the way they feel that you could be
most comfortable because we've also got as much as we

(01:55):
were spoiled with low interest rates for a long time,
we have recently been more spoiled with with low unemployment
and the fact that if you want a job, you
can get one right now pretty much anywhere, and that
can change on a dime.

Speaker 2 (02:09):
So I know this is probably not in the in
the bank rate yep survey, but you know the notion
that you know, if let's say, if your bills come
to seven thousand dollars a month. What you're suggesting is
you ought to have a reserve savings account of fifty grand.
All right, Well, obviously that's gone. But I mean the
notion is that they can't afford a one thousand dollars
you know, air conditioning repair bill. So obviously that forty

(02:33):
to fifty grand isn't there. And then you wonder how
much people have tapped into four oh one ks or
with he locks the home value. You wonder because this
has been going on for quite a bit. It's been
going on for a long time that America has been
living paycheck to paycheck, even before the Biden four years.
So you know, you wonder what the next step is. Well, right,
and not a lot of it's a net under them, right.

(02:55):
We saw all through COVID that Americans just keep on spending.
You know, the credit card debt nationally now tops one
trillion dollars with a tea even though indust rates are
getting higher or had been. So it's yeah, we are
in a bad place because we live beyond our means
and we don't have a culture of saving in this country,
kind of like our government. All right, Broy great reporting today.

(03:16):
I was fascinated by that one. I want to see
where it was going, and where it's going is on stuff,
but certainly not savings.

Speaker 1 (03:23):
Miss a little, miss a lot, miss a lot, and
we'll miss you. It's Your Morning Show with Michael del
Churno