Not Having ‘Sleep at Night’ Money is Dangerous

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Most of us have been broke or nearly broke at some point in our lives, and too many of us are at this moment.

It gets tough to fix the car, fix the furnace or buy the kids' school clothes.

Greg McBride is the chief financial analyst for Bankrate.com. Even he has been in that situation.

McBride explains how everyone should have “sleep at night money,” but according to a recent poll, more than 66 million Americans do not have money saved up for an emergency.

He says that’s dangerous.

“There’s no buffer between them and high-interest-rate credit card debt the next time an unplanned expense pops up. So if the car breaks down, they’re either having to put that on a credit card at 16 percent interest or resort to some other means of high-cost credit, or something else is going unpaid,” McBride said.

According to Bankrate, Americans’ savings rate improved from last year. In 2015, 22 percent of Americans had sixth months’ worth of emergency savings. In 2016, that number grew to 28 percent of Americans.

McBride also says that millennials are struggling more than others with their savings rate. Also at the age, they likely have kids, mortgages, etc.

Watch the full segment for McBride’s take on how you can be better with your money.

Up next…

On Part 2, our political Insiders talk about how their party’s leaders should talk about our finances and what ideas could make things better.

About the Insiders
The Insiders with Dave Price features in-depth conversations with top politicians, decision makers and influencers from Iowa and across the country. It's Iowa’s Sunday morning tradition that provides unique insight into what's happening, and it's the show that holds elected officials accountable.

Catch the Insiders Sunday at 9:30 a.m. on Channel 13.