CLARKONOMICS: 20 years ago, the average American saved a little more than a dime on a dollar of income. Today, that savings rate is around zero. Over the last few years, we had 3 consecutive years when we spent more than we made. In short, we’ve been spending fools.

However, the decision to spend and not save had some logic at the time. Money was available below its real cost for a few years. There was free financing on homes, furniture, electronics, cars, etc. The cost of funds was driven so low that economists say money was available “below actual cost or value.” So people made what seemed in isolation a very wise choice. But eventually you have to pay.

During Clark’s appearances, he’s fond of talking about the “no, no, no” plans. That’s when you hear or see a garish ad about “no down-payment, no interest and no payment until 2050!” The “no, no, no” plans psych you into thinking your purchase is cost-free -- but it’s not because you create an obligation. We as a culture have become a nation of payment buyers.

A new chart from McKinsey Global Institute shows that, using constant dollars, the average American in one generation increased debt obligations by 225%. That’s at the same time as we stopped saving money.

So you have a double-whammy -- we’re skating on thin ice and simultaneously eliminating our safety net. If you have ever had the experience of watching thin ice melt, Clark wants you to picture that image when you go to buy something on credit that you can’t afford.

Meanwhile, start small if you’re not saving. Don’t aspire to save a dime on a dollar all at once. If you have open enrollment at work and you’re not contributing to your 401(k), start with just a penny on a dollar. That’s 1% of your income and you won’t miss it. Nor will you miss a dime on a dollar if you go up incrementally in small steps from 1%.

No access to a retirement plan at work? Take a penny on a dollar and have it deposited in a savings account at a credit union. You’ve got to start somewhere.