Photo: Flickr via heatherbuckley
Something doesn’t quite add up in a new Country Financial study. Out of 3,000 Americans surveyed, more than half said they spend more than they earn at least a few months out of the year. Makes sense – who doesn’t whip out their credit cards for extra spending room around the holiday season?
But then you get to the next piece of data in the survey, where only 9 per cent said they think they’re living beyond their means.
If that were the case, then they wouldn’t need to dip into their savings account or run up credit cards, right?
Wrong. More than one-third said they’ve picked apart their savings to make ends meet, while another 22 per cent turn to credit when things get tight.
Only 14 per cent actually adjust their budget.
Turning to backup plans like savings accounts in desperate times might help out in the short-term, but consumers risk missing out on whatever benefit they might gain by letting them grow.
That’s the same mentality that’s kept so many consumers from contributing to 401(k)s. Without a clear picture of their financial future, they’re more likely to think about their needs in the present.
Of course, the first step to financial recovery is admitting you have a problem. Looks like most of us aren’t quite there yet.
Country’s survey was conducted by Rasmussen Reports, an independent research firm.
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