Emergency Savings Are Vital, Yet 66 Million Americans Don’t Have Any
A disturbing new report from Bankrate finds that 66 million U.S. adults have zero dollars saved for an emergency.
Emergency savings comprise a vital “first tier” of any savings plan. Having money for emergencies reduces anxiety and prevents people from running up high interest debt to cope with unexpected expenses.
So, it’s particularly worrying that so many Americans have nothing in reserve for emergencies.
Bankrate said that Gen Xers are in the worst position, with 33% of 36-51 year-olds with nothing saved versus 27% of all others who are 18 or older.
Ages 36-51 are prime years for having emergencies, yet millions in this age group have nothing set aside.
As we said at the top, having emergency savings satisfies only the first tier of your savings plan. Beyond this are the goals of saving for 6 months of expenses in case of a layoff, and saving adequately for retirement.
So, this huge population of adults has not even gotten off the starting line with saving.
If you’re one of these people, don’t be ashamed or stressed out over having no savings but do take action to correct the situation.
Your first step in changing the situation should be a visit to your credit union. There, you will find people who can help you put a savings plan together -- and help you to put it into action immediately.