Are You Prepared For a Financial Emergency?

The recent recession took a toll on Americans’ saving habits. Nearly half aren’t ready for a personal financial emergency. We’re always told to have at least six months worth of savings on hand in case of a financial emergency. Fewer people are for whatever reason following that advice.

A survey released this week by Bankrate.com found that:

  • 22% of Americans say their emergency savings would cover no more than three months’ worth of expenses.
  • 24% have no emergency savings at all.
  • Only one in four had that recommended six months saved up in case of a financial emergency.

To save more, Bankrate suggests:

  • Don’t be afraid to start small, then add a little bit more every paycheck.
  • Put your savings systems on autopilot, such as direct deposit from your paycheck.
  • And if you get a raise, take half of it and add it to your savings and keep the other half.

Bankrate.com described the survey findings as “sobering” given 6.2 million Americans have been out of work for six months or more. Click here to see the results of the savings survey.

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