Nearly one-quarter of Americans have no emergency savings whatsoever.
Experts say you should have six months’ worth of living expenses saved up in case you lose your job. Most Americans say, “Who, me?” A Bankrate.com survey shows that the vast majority of U.S. workers fall short of the six-month standard. Given the anemic-at-best recovery, and the fact that it will take years for employment to reach pre-Great Recession levels, this is a huge problem. "With over 6 million people out of work for longer than six months, Americans still have much work to do in building an adequate emergency savings cushion," says Greg McBride, CFA, senior financial analyst for Bankrate.com. "Those most likely to have an adequate savings cushion are individuals in their 50s and 60s and higher-income households. But even among these groups, at least half do not have six months of expenses in an emergency fund." The report also sheds light on concerns about debt, job security and a decline in our perceptions of net worth. More than 1,000 people took part in the research. For more about the survey, click here.
Dennis McCafferty is a freelance writer for Baseline Magazine.
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