"Too often nothing is left over," McBride said. "You need to automate the process by having direct deposit from your paycheck into a dedicated savings account. It is easy and doable, but no one is going to do it for you. You have to have the discipline to make tough decisions on your spending, so you can funnel money toward debt repayment rather than adding to your debt load. The majority of consumers can still find expenses to reduce to increase their savings, he said.
"People can still cut expenses," McBride said. "I've never seen one person who can't cut something somewhere. Every little bit you put away is a buffer from high interest rate debt from the next time unplanned expenses arrive. Savings is not prioritized highly enough. The stagnant household income is the barrier that is getting in the way for a lot of people. There is no substitute for taking a hard look at your expenses."
Written by Ellen Chang for MainStreet