Signs you're flirting with financial ruin

He said that while saving may be difficult, not saving puts you at risk of financial hardship. "With no savings, you're really standing on the edge of a cliff," he said.

Blanchard agreed. He said many people rely on credit for their emergency backstop, but credit isn't effective as an emergency savings fund. If banks see you regularly adding abnormally high charges, they'll clamp down on your limit.

You need to set aside money for unexpected emergencies and for your future retirement, he said.