Report Shows Coloradans Have Meager Savings
KREX News Room
GRAND JUNCTION, Colo.- Unexpected disasters happen all the time; a fire, an earthquake or maybe a hurricane. However, another kind of tragedy can impact you in a completely different way, as financial disasters can come suddenly as well.
Whether it may be saving for college, buying a home or setting aside a retirement plan, financial experts NewsChannel 5 sat down with say without saving families have a limited hope of building a future.
“You can only cut back so far,” said Barbara Traylor Smith, financial expert. “Trying to keep your house, all of those things, people spend down there assets, all their liquid assets.”
According to the newest Scorecard preformed by the Corporation for Enterprise Development, 46 percent of Colorado residents have almost no savings to cover emergencies or save for the future.
“The folks that are at that poverty level, that’s not very surprising,” said Smith. “It’s the folks in the next statistic that says 30 percent of those who earn $60,000 to $100,000 a year do not have 3 months savings, that’s the most concerning statistic.”
Smith says since we are coming through a recession, there have been only meager recovery efforts for countless folks, even for those hoping to re-build.
“The concern is, if we have another recession and we go back down and lose jobs and things like that,” said Smith. “Because folks, when they lost jobs, they had to have some in between to fill the gaps because even unemployment doesn't cover their expenses frequently.”
In order to cope with financial loss, experts say families have had prioritize today's expenses over tomorrow's goals but without savings, these families have limited hope of building a more prosperous future.
“In the previous years, all I was able to save was my taxes,” said Gina Lakes, Grand Junction resident. “But now my taxes go to pay bills that I am behind on. So it’s actually even harder to save your taxes now.”
However, Smith says to put as much as you can away to ensure you don't fall short if another financial crisis comes knocking at your door.”
“If you have debt and you don't have savings, I highly encourage you to look at every purchase as is this a want or a need,” said Smith.
Smith adds you'd be surprised how much $30 saved here and there could make a difference and will help you start paying off your debt.