smart spending

March 2011: Savings

Q:

How do you feel about the amount of money you have in savings compared to 12 months ago?

The number of people more comfortable with their savings rose 2 percent from February, but remained at a low 17 percent.
The number of people less comfortable with their savings is growing, up to 40 percent in March from 38 percent a month earlier.
Just 12 percent of people over 65 say they are more comfortable with their savings.

Greg Stevens

"People don't have the equity they had."

The general malaise in the overall economy is still affecting people. In 2007, the market was going gangbusters and everyone had equity in their home they could tap into if they needed to use it. Equity in your home has a huge impact on how you feel about your wealth. Too many people got really comfortable tapping their home equity to pay for things like vacations, cars and boats. That is gone now. People don't have the equity they had in their homes, and it makes everyone less comfortable.

- Greg Stevens, senior financial counselor, Cabot Money Management, Salem, Mass.