47% of Americans say their savings can’t cover 3 months expenses

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I honestly think this percentage is way too low considering that there have been multiple studies that show that more than half of Americans couldn’t even come up with $400-$1000 in the case of an emergency. If that’s the case then I don’t see how the percentage of people that don’t have 3 months worth of savings can be anything but significantly higher since, for most people, even $1000 is much less than 3 months worth of expenses.

via usatoday:

No emergency savings? No problem!

At least that’s what nearly 1 in 5 respondents implied in a new survey on savings habits.

When asked if they were comfortable with having no savings set aside for emergency use, 18 percent agreed, according to a new report from consumer financial services site Bankrate.com. In a related question, almost half of respondents (47 percent) who have savings to cover less than three month’s expenses say they are somewhat comfortable or very comfortable with their savings amount.

Because financial emergencies are bound to happen at one time or another, people would be misguided in feeling secure about their insufficient cash reserves, said Bankrate.com’s chief financial analyst Greg McBride.

“People are kidding themselves if they have any level of comfort with that (inadequate savings),” McBride said.

The Bankrate report found that nearly one-in-four Americans have no emergency savings available to them. This means, when financial emergencies arise, they do not have any living expenses stored in a bank to deal with a sudden job loss or to cover unplanned bills.

h/t drwsgreatest

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