Recession aside, most people are still living beyond their means. Collectively, we’re out of control financially, even though we furiously attempt to convince ourselves otherwise.
Savings rates have increased recently, but I personally fear that it’s a temporary circumstance as the media desperately touts the “recovery” – a recovery with high unemployment, a recovery where the average family still has between $10,000 and $16,000 in credit card debt, a recovery with most of us back at the mall already.
Signs you may be financially out of control
1. You’re saving less than 5 percent of your income.
Some are saving zero. Saving less than 5 percent can mean you haven’t completely bankrolled your emergency fund – flirting with financial disaster.
2. Your credit score is less than 600.
Your credit score is the reputation you have with creditors. A low score means you’re probably in over your head and probably out of control. The higher your score, the better your reputation and your reputation is dependent on: