5 ways Americans sabotage their savings

Finances are tough enough without having to manage these self-inflicted wounds.

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VIDEO ON MSN MONEY

243Comments
Jul 31, 2014 10:45PM
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Sure people can sabotage their savings, but first there has to be savings!

Years ago a young couple lived on one salary and banked another until they had the down payment for a house. They got a mortgage that fixed their housing payment and they could afford it on one salary. Wife stopped working a few years, they had kids and all was fine. As the husband's salary rose, they started to get ahead. when wife returned to the workforce they were able to start saving for the kids college. More salary increases and they start saving for retirement. Unfortunately that part of the American Dream has not been seen in over 25 years. Nowadays every time there is any savings, someone is laid off and the savings are gone!


Aug 1, 2014 6:43AM
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I remember as a kid opening my savings account with that little passbook.  5% interest rate mandated by law.  Now you can get 0.5% as long as you keep a $500 balance.  Saving money like that is just a waste.  You are far better off paying down debt and relying on a HELOC for emergencies.  You would come out better stuffing your money in your mattress rather than taking it to teh bank as your time and your gas are worth more than any interest payment you will receive. 
Aug 1, 2014 12:08AM
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Excuse me but doesn't the writer of this article have it backwards? The FED has been screwing us for YEARS with their LOW INTEREST RATES, and then SOME people have the NERVE to tell the REST of us that WE'RE sabotaging OUR SAVINGS?

It may come as a shock to SOME of these blathering idiots, but government and fed interference in the economy has SCREWED 95% of the country, and the inflation they're causing with ALL this FAKE money creation, is going to SCREW us even more. You think the 1970s were called the age of stagflation? WAIT!!!

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i'm 60 years old, and when I was a kid the banks would offer 3-4% intrest on savings. Now banks are nothing more than credit card companies, more money in cc fees than paying intrest on your money. banks are nothing more than theives, just like the rest of wall street!

Aug 1, 2014 8:29AM
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It’s the Federal Reserve and our government’s deficit spending that has sabotaged my savings; Not me..

Aug 4, 2014 4:53PM
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I have gotten to where I don't like opening these MSN articles, because they always lead into a so-called "slide show."  Their whole objective seems to be collecting ad clicks instead of presenting information.
Aug 4, 2014 5:11PM
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Do you really need that $160 + a month Telephone plan???, that Cable bill. of $190 a month ????Vacations that you Can't Afford??? I am retired for the past two years an live on SS and automaticly put $150 a month into a savings account keeping balance at $4000. Yes it is not a lot but comes in handy in emergency's . STOP using CREDIT Cards-
Aug 4, 2014 5:23PM
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You know, the thing this article doesn't take into account are those families that end up having one hardship after another.  Multiple long term unemployment experiences, medical hardship, travel expense in order to find work.  Just in the past two weeks, we have had one vehicle that hit a deer and a daughter that got in a bicycle accident requiring a lengthy ER visit.  Once you demolish your savings, you end up praying that no other hardship is around the corner for awhile.  For our family, we are now three years out before we can see the light of day.  There so much more to the economic dilemma that a lot of families experience than just not saving enough.
Aug 4, 2014 4:51PM
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Don't forget...having children costs a heck of a lot of money. Don't do it.
Jul 31, 2014 10:06PM
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I try to save and do. To keep even with inflation. Drawing .5 per cent if lucky. With inflation at least 2 per cent. If you believe the government about inflation the last few years. Pay 15 per cent on it. So you lose about 1.65 per cent a year. Of course I am talking about the average person. Just wait until inflation kicks in because of all the printing of money
Aug 4, 2014 5:06PM
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You live an learn.   Back in my early 30's I charged my credit card to the point where I was almost  drowning in $30,000 worth of credit card debt.  On my salary... that was too much debt for my plate.  I got rid of that debt.  Now when I charge my credit card, I only charge $300 max.  Nothing above that threshold.  The point is... people cannot save because they are paying off credit cards... and other debt.  You get rid of the debts and you will free up money that you can then stuff in a savings account or money market account.   Debt is pure ugly... if you get into it, find the way to get out of it.
Aug 4, 2014 6:17PM
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Not everyone can control how much they make - but everyone can control what they spend.


The real problem is a significant percentage of the American public overspends and do not live within their means and then wonder why they do not have any cash, savings, investments, etc.


Nobody must have a new car, Starbucks, smartphone, cable TV, designer clothes, expensive vacations, going to restaurants, etc. These are wants not needs!!


Controlling your spending is like controlling your weight - it can be done, it's just not easy.

Aug 4, 2014 5:16PM
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Ok, so I have paid 1,260,000 Dollars in SS and Medicare adjusted for inflation the last 45 years (both halves mostly myself), and of course also Fed interest rate charged banks for loan must be added to me, the feds are loaning my money all that time, so tell me at 25 K a year paid out in SS when should I run out of money, at the same/similar inflation and interest rate average? that is right, the result is never. US population is very poorly educated in all this, so the US government gets away with it and at the same time is dishing on better  social states/countries systems, citing high taxes, and that is a huge lie, they never talk about all the property tax people pay here.. Remember if you put 2000 in bank in 1970, you now have, 4500-7000. 2000 is what  a brand new Volkswagen cost then an now its 27,500, you see the problem AND you have to pay Fed/St taxes on all the interest/gain every year, so you really only have about 3 K pending your tax rate; people have no idea how they get screwed! AND the banks have the money and play with it and make a fortune on your money, get real USA!
Aug 4, 2014 4:52PM
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The main lesson from the "Occupy Wall Street" Corporation is this:  

Those who have money MUST HAVE stolen it from those who don't.
Aug 2, 2014 5:24PM
Aug 4, 2014 5:05PM
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More propaganda to elude the fact that companies would pay us less,if they could.

They don't want to pay what they already do and wouldn't hesitate to pay less while the people keeping those companies doing so well are treated like crap.

People making barely over $2/hour 'min. wage' in an industry (restaurant) which is

huge to the economy having to bust their a$$ just to get by as well.

Aug 4, 2014 6:54PM
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How can any working person save money when he supports his own family plus some inner city tribe with 6 kids on welfare and 60,000 more illegals coming across the border each month.
Jul 31, 2014 8:31PM
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Sabotage your savings? The 20% down turn in wages was to be the savings. If workers can stay out of too much debt during Obamas' spend it all, tax it all years workers would be doing good. Pretty soon now people will need to go to work and pay their own way. All that free unearned money flying around in stores will be less. Then maybe savings will rise due to less inflation on survival necessities.
Aug 1, 2014 1:06PM
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I wasn't aware that gummit inflation was a way that we sabotaged our savings. Well half of America did, the rest of us voted against the community organizer.
Aug 4, 2014 4:45PM
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number one way,vote democrate,they will destroy every thing good and moral,take from everyone and give it to the poor,last time i looked fair share meant every one pays the same percentage
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