“Most Americans are one paycheck away from the street”
“Americans are feeling better about their job security and the economy, but most are theoretically only one paycheck away from the street.
Approximately 62% of Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair, according to a new survey of 1,000 adults by personal finance website Bankrate.com. Faced with an emergency, they say they would raise the money by reducing spending elsewhere (26%), borrowing from family and/or friends (16%) or using credit cards (12%).
‘Emergency savings are not just critical for weathering an emergency, theyre also important for successful homeownership and retirement saving,’ says Signe-Mary McKernan, senior fellow and economist at the Urban Institute, a nonprofit organization that focuses on social and economic policy.
The findings are strikingly similar to a U.S. Federal Reserve survey of more than 4,000 adults released last year. ‘Savings are depleted for many households after the recession,’ it found,” quoting MSN’s Marketwatch.