Financial checkup may be as important as health checkup

During the past three decades the personal savings rate among Americans has dropped more than 50 percent. According to data from U.S. Department of Commerce Bureau of Economic Analysis, the personal savings rate in January 1970 was 9.4 percent of disposable income. The highest level of savings came in 1982, when the rate climbed to nearly 11 percent before beginning its continuous decline in 1984. The lowest savings rate was reported in 2005 at just 1.6 percent of disposable income.

It has economists on the national level and money managers on the personal level calling for a return to budget discipline.

According to www.statisticbrain.com, the average American family has about $3,800 in a savings account, with about $35,000 saved toward individual retirement. Conversely, 25 percent of American families have no savings at all and 40 percent are not saving for retirement.

While most people know the importance of saving and managing money, not everyone is disciplined and organized enough to do so effectively. The average American household income is about $43,000, and approximately 38 percent have no funds set aside in case of emergency.

Jim Hoch, tax manager for Salt Lake-based certified public accounting firm HEB Business Solutions said that no matter what your income level may be, being a good money manager takes discipline and the mindset to control your financial destiny. Deseret News