The Need for Emergency Savings

Are you financially prepared for unexpected emergencies? If you aren’t, you are not alone.

According to a recent survey published by bankrate.com, only 24% of Americans have the recommended amount of money set aside in emergency savings. The recommended amount to be used as a cushion for emergencies and unexpected expenses is at least six months’ worth of expenses. The survey also reported that another 24% don’t have any emergency savings at all.

Today’s society is struggling after the recent hit to the economy and the high rates of unemployment with over 6.2 million people out of work. These challenges only prove that there is a sufficient need for emergency savings despite your age, occupation, or current situation. If you haven’t started an emergency fund, start immediately. If you do already have an emergency savings, review your balance and make sure you have savedthe recommended amount. Not only will this prepare you for the unexpected, but it will reduce your financial anxiety if an emergency actually happens!

How can you get started? Start saving NOW! Take a small portion of your paycheck and put it away in case of an emergency.  If you can only afford to contribute $10-20 per month, it is still a step in the right direction!

9 thoughts on “The Need for Emergency Savings

  1. Saving $10-$20 can go a long way in the grand scheme of things. Imagine saving $240 a year for 10 years! Given a reasonable interest rate, one could be saving well over $4,000. That money can be made without breaking a sweat. However, with the current mindset of many young adults today, it is easier to view the $20 as a tasty meal now instead of $4,000 in ten years. I am reluctant to say that I possess the same ideals as many others my age. I’d rather that tasty burger now! I figure that one day I will be able to invest $100 a month. Until then I will keep indulging in delicious treats.

  2. I am unfortuneatly a part of the 86% of Americans that do not plan ahead and save for emergencies. I agree with this post and think that with our economies state starting to save now will benefit me later. Our economy needs us to be spending money but not money we donnot have. Debt can pile up and be very stressful.

  3. Now days you cant predict anything. Anything is bound to happen, that’s why it is important to have money set aside. This way you won’t have to worry as much if you were to lose you job, or a natural disaster. More people need to invest in a emergency fund. If your financially tight start small; everyone has to start somewhere.

  4. Emergency savings is a must for anyone. You will always need money handy just in case your car suddenly breaks down or your air conditioner goes out in the middle of summer. The post doesn’t stress this enough, with this economy you never know when you could get laid off and you will need an emergency fund to protect you during times that you don’t have a job.

  5. Another reason it is imperative to have an emergency fund is because the economy is very unpredictable. Who knows what is going to happen in the on coming months as it relates to jobs. By there being a lot of government cuts, many people are being laid off their jobs. And the end result leads to a lot of financial frustration. One thing I do like, is that it is not too late to start saving for emergencies. And you don’t have to relinquish your entire paycheck to play catch up for the time you have missed. Just start saving NOW!!!

  6. While the total amount of unemployment in the US is relatively low, it is imperative that everyone has an emergency fun. Seeing that nearly 1/2 of this country does not have a adequate emergency fund is shocking, as most people are aware that unexpected things come up, or even more recently that losing your job is not too unlikely. To better save for an emergency fund, people could save $5 every time they go to a fast food restaurant by cooking themselves if they are tight on money. This will lead to a healthier life style as well as a more financial stability. Putting small amounts of money away over long periods of time adds up, which helps relieve a stress.

  7. I agree that it is very important to have an emergeny savings account, not only will it protect you from breaking your back trying to pay for damages when disasters hit, but it will help give one peace of mind about their financials when obsticles do occur.I realize it can difficult to put extra money away, but I believe it is well worth it.

  8. I agree that it is hard for many to save. It helps to just take small amounts out of each check and put it away in a separate account. Although it may not seem like much at first, those small amounts add up. This helps to relieve a lot of stress when you know you have that money if you need it.

  9. I realize that it is very difficult to save money in today’s world. However, many banks are helping with this by automatically transferring a small amount into your savings account when you use your debit card. This is a perfect way to get started saving!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s