Americans are not saving at all reports the Commerce Department. As a nation the savings rate was minus 0.5 percent for the year in 2005; the first time a negative savings rate has been reported for an entire year since the 1930s.

"Adequate savings can save consumers from immediate financial hardships during a job loss, a major illness or other disruption of income," said Steve Trumble, President of American Consumer Credit Counseling. "We recommend to begin saving today no matter how small the amount."

ACCC offers five steps to begin saving today:

1.) Set savings goals. This will help motivate you to start saving. Develop both long and short-term goals. Long-term goals might include college tuition or retirement. Use short-term goals to set up a holiday spending account or to save for a quick trip to a fun place you want to visit.

2.) Treat savings like a bill. Once you've set your goals, determine the amount you can afford to put away on a regular basis. by building regular savings into your budget, you are able to pay yourself first. When you sit down to pay your bills, make your savings bill the very first one you pay.

3.) Be ready for emergencies. Having an emergency savings fund of three to six months' bare bones living expenses will prove invaluable if you lose your job or face a medical crisis. This is also the fund you will go to when your car breaks down or the washing machine goes out.

4.) Save new money. When your income increases, through raises or bonuses, commit to saving part of it, if not all, of the increase. Ultimately your goal should be to save ten percent of your income each year.

5.) Take advantage of employee benefit plans. If you company offers 401(k) or similar plans which offer employer-match, be sure that you are saving the maximum amount to receive the full benefit of employer-matched savings.

ABOUT ACCC:

American Consumer Credit Counseling is a non-profit 501 (c)(3) organization dedicated to empowering consumers to regain control of their lives through financial education, counseling and debt management. ACCC provides individuals with practical solutions for solving financial problems and recognizes that consumers' financial problems are often not the result of poor spending habits but more frequently from extenuating circumstances beyond their control. As one of the nation's leading providers of financial education and credit counseling, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. For more information or to access free financial education materials visit www.consumercredit.com.

Tom Palange
Education Programs Specialist
American Consumer Credit Counseling
800-769-3571 Ext. 708
http://www.consumercredit.com