According to a survey by Bankrate.com, very few of us have an emergency savings. Only about one-quarter of Americans say they have a savings account to help them when things get touch. Further, nearly 60 percent lack the recommended six-month stockpile of monies to cover an unexpected emergency or lay-off.
The trouble with this is incomes are remaining relatively the same and expenses for families continue to climb or remain static. The cost of living is not going down.
The only possible silver lining, according to Bankrate.com’s Chief Financial Analyst Greg McBride, is young people are saving more than compared to those 30-49 years old. This may be attributed to the learned lessons from the 2009 recession in which many millennials saw how crucial it is to save money.
It’s important to have a savings plan. Emergencies tend to arise when you least expect it. Nobody can predict the future and a simple savings plan is that safeguard to help us stay relatively calm when the future throws an unexpected punch.
People younger than 30 must realize once they reach the age to obtain Social Security, it will not be a primary source of income (nor was it ever intended to be). And given the average life expectancy keeps growing more and more, we’ll likely be living longer, thus needing more funds to get us going.
If you’re interested in a savings account or money market account, visit Bankrate’s webiste.