According to an article posted on NBC News online, 66 million U.S. adults have zero dollars saved for an emergency, per a recent study by Bankrate.
Those in the Generation X age group were the least likely to have savings — typically during the major home buying and family raising years. One-third of Americans age 36 to 51 admitted that they had saved nothing in an emergency fund. Generally, according to Bankrate.com, the likelihood of having saved at least six months of expenses increases steadily after age 25.
Currently 47% Americans said they couldn’t afford an emergency expense of $400 or would cover it by selling something or borrowing money, according to a separate report by the Federal Reserve Board’s Division of Consumer and Community Affairs.
It is recommended that a person have six months’ worth of expenses saved in an emergency fund. Just 28 percent of Americans have saved that much, the study said.
This just proves the case that savings must be purposeful and takes time. Also, the sooner you get started the more you will have when you need the funds Katharine Perry, an associate financial consultant at Fort Pitt Capital Group, in Pittsburgh, suggests putting $20 from every paycheck into a savings account.
“A little bit every month will ensure you are not stressing your cash flow,” she said. Otherwise, any sudden expense, from car repairs to a burst pipe, could cause you to slide into debt, she said.
At CBL, we have the perfect account that lets you start small and save up for whatever you need and access the funds when you need to. Ask about our Ready Stash Savings account.