One in four Mass. residents struggle to save

NORTHAMPTON, Mass. (WWLP) - A new report show more people in Massachusetts are struggling to save money. Financial experts say 3 to 4 months of living expenses should be immediately available for emergencies.  But in a state where 26 percent of households are “asset poor,” that can be challenging.

One in four Massachusetts residents have little or no savings. “That’s not surprising to me people are going paycheck to paycheck to make ends meet. You cannot raise a family, have health insurance and put food on the table and provide basic needs with a minimum wage job,” said Rose Bookbinder of Haydenville.

The national non-profit Corporation for Enterprise Development says Massachusetts ranks 10th for the financial stability of its residents. But 26 percent of those residents lack savings or assets to cover three months of expenses if they ever came across an emergency.

Financial advisor at Ameriprise, Dennis Gero, told 22News not having cash reserve is common for a lot of people. But getting ahead on your savings can be as easy as not using a debit card when purchasing every-day items.

“Paying cash for things is effective because it makes you stop buying at some point. If you have a card, charge card, debit card, you tend to lose track of what you’ve put on it,” said Gero.

Assigning a percentage of your paycheck to be directly deposited into a savings account is another effective way to save. Gero says employees should also take advantage of retirement plans, it can help kick-start a financial cushion and reduce income taxes.