Suze Orman Says Americans’ Personal Finances Are ‘Really, Really Bad’ Even As Stock Market Is Doing Great

In a recent conversation with Chris Wallace on CNN Max, Suze Orman pointed out that while the stock market is doing well, it doesn’t reflect how most American households are really doing financially.

“What if I told you that 75% of the people in the United States don’t have $400 to their name in case of an emergency?” Orman said, describing the financial situation of ordinary Americans as “very, very bad.”

Don’t miss:

While we often use the stock market to measure overall economic health, Orman points out that it doesn’t reliably tell us how everyday Americans are doing. “By and large, the average human being in America today is living paycheck to paycheck and not doing very well,” she explained.

As household debt rises and reliance on credit cards increases, it’s clear that individuals may find themselves in a deeper financial crisis. Last summer, US credit card debt topped $1 trillion for the first time, a milestone Orman pointed to as a symptom of a much bigger problem.

Trends: Can You Guess How Many Are Retiring With a $5,000,000 Nestlé? – How does it compare to the average?

Even though some sectors of the economy look strong, Orman made it clear that inflation is making it difficult for most Americans to keep up. Wallace, surprised by Orman’s statistics, asked her to elaborate on what she described as a “financial pandemic.”

“We are in a pandemic in the sense that there is no financial vaccine to cure this,” Orman explained, adding that the crisis will not be solved by external forces. The only way forward, she claims, is for individuals to take responsibility for their financial well-being. “The government will not save them. It won’t save their economy. They will have to be their own financial vaccine, so to speak.”

Trending: Founder of Personal Capital and former CEO of PayPal reinvent traditional banking with this new high-yield account – start saving better today.

Orman’s stark warning reflects a growing disconnect between market performance and individual financial health. While stock market gains could boost portfolios for wealthier Americans, many face tough choices, living paycheck to paycheck with little or no safety net.

The story continues

A recent MarketWatch survey corroborates Orman, stating that nearly two-thirds of Americans feel they are living paycheck to paycheck.

In response to this crisis, Orman co-founded SecureSave, a business that addresses a critical component of personal finance: emergency savings. Through this business, Orman hopes to help people build a financial cushion to protect them in times of need.

Trends: Warren Buffett once said, “If you don’t find a way to make money while you sleep, you’ll work until you die.” Here’s how you can earn passive income with just $100.

“The purpose of the money is for you to be safe,” Orman told Wallace. She explained that SecureSave works with employers to allow workers to automatically save a portion of their paycheck, making it easy to build an emergency fund without thinking too much about it.

With the program, employees can save as little as $25 per paycheck, and some employers offer to match some of those contributions. “In a year, they have about $1,000,” Orman noted, adding that the goal isn’t to accumulate large sums right away, but rather to establish a savings habit that can lead to bigger habits, such as saving for retirement.

Trending: Beating the Market Through Ethical Real Estate Investing” — tits platform aims to give renters equity in the homes they live in, while earning an average annual return of 17.17% for investors – here’s how to join for just $100

These emergency savings accounts are FDIC insured and employees can access the money whenever needed.

The stock market can do well, which is great for retirement and investment accounts, but many people don’t have the basics of emergency savings. Orman’s message is that security doesn’t come from market gains—not that it can’t help—but from building healthy financial habits, such as emergency savings, that can provide stability in uncertain times.

If you’re facing financial uncertainty and aren’t sure where to start building security with your own finances, consider talking to a financial advisor. They will provide advice tailored to your unique situation and help you determine a plan that fits your financial goals.

Read on:

Next: Transform your trading with Benzinga Edge’s unique market trading insights and tools. Click now to access unique information that can put you ahead in today’s competitive market.

Get the latest stock analysis from Benzinga?

This article Suze Orman Says Americans’ Personal Finances Are ‘Really, Really Bad’ Even As Stock Market Is Doing Great originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.