Current:Home > Contact-usAre you ready for a $1,000 emergency expense? Study says less than half of Americans are.-LoTradeCoin
Are you ready for a $1,000 emergency expense? Study says less than half of Americans are.
View Date:2024-12-24 09:41:50
Planning for the unexpected is crucial since life doesn't always go as planned.
But only 44% of Americans are prepared for a $1,000 emergency expense, according to a survey from financial analysis site Bankrate. While a percentage point higher than last year, most people still say they would be derailed by such a crisis.
The report, published Tuesday, sampled answers from over 1,000 participants, 66% of whom who worry whether they could cover a month’s living expenses if they lost their primary source of household income.
Of the unprepared Americans, 21% said they would use a credit card for the necessary expenses, 16% would reduce their spending on other things to pay it upfront and 10% would ask a loved one to borrow money, the survey found. Just 4% said they would be forced to take out a personal loan.
"All too many Americans continue to walk on thin ice, financially speaking," Mark Hamrick, senior economic analyst at Bankrate, said in the report.
Learn more: Best current CD rates
Media job cuts:Business Insider to lay off around 8% of employees
Most say high inflation makes it harder to save
Hamrick said that high inflation often stops people from saving more.
The study found that 63% of Americans blame high inflation for the difficulty of saving money. Just 45% cited rising interests rates, 41% cited a change in income and 42% listed another option.
“Inflation has been a key culprit standing in the way of further progress on the savings front," Hamrick said. "Fortunately, rising interest rates have also provided more generous returns on savings."
Tips to save amid high inflation
The report offered three tips on how to build an emergency fund amid high inflation.
- Calculate how much emergency savings you need. Experts say saving around three to six months of expenses is ideal but not a concrete rule, Bankrate said. They added that hiring slowdowns, recessions or other economic hardships may require you to save more.
- Open an account specifically for emergency use. Bankrate urges people to have emergency funds accessible for when it's needed, whether it's an online savings account, money market mutual fund or a money market account.
- Budget around an emergency fund. Getting by for each week and month is not ideal. It's crucial to consider how you can routinely save in case of emergencies and to stick to good habits, Bankrate said.
veryGood! (64893)
Related
- 3 Iraqis tortured at Abu Ghraib win $42M judgement against defense contractor
- Gyspy Rose Blanchard Reveals Kidnapping Survivor Elizabeth Smart Slid Into Her DMs
- Would Emma Stone Star in a Movie About Taylor Swift? She Says...
- 'Feed somebody you don’t know': Philadelphia man inspires, heals through food
- As Northeast wildfires keep igniting, is there a drought-buster in sight?
- Ariana Grande teases fans with new music release this Friday
- Officers in Colorado are investigating an apparent altercation between Rep. Boebert and ex-husband
- Once Known for Its Pollution, Pittsburgh Becomes a Poster Child for Climate Consciousness
- The state that cleared the way for sports gambling now may ban ‘prop’ bets on college athletes
- Why isn't Travis Kelce playing against Chargers? Chiefs TE inactive in regular season finale
Ranking
- Natural gas flares sparked 2 wildfires in North Dakota, state agency says
- Thousands forced from homes by quake face stress and exhaustion as Japan mourns at least 161 deaths
- Blinken brings US push on post-war Gaza planning and stopping conflict to UAE and Saudi Arabia
- Atlanta Falcons fire coach Arthur Smith hours after season-ending loss to New Orleans Saints
- The Office's Kate Flannery Defends John Krasinski's Sexiest Man Alive Win
- Zillow's hottest housing markets for 2024: See which cities made the top 10
- Golden Globes 2024: Jeannie Mai Shares How She’s Embracing Her Body in Her 40s
- See Meryl Streep and Emily Blunt's Groundbreaking Devil Wears Prada Reunion at Golden Globes 2024
Recommendation
-
Mike Tyson is expected to honor late daughter during Jake Paul fight. Here's how.
-
Keep Your Desk Clean & Organized with These Must-Have Finds
-
Would Emma Stone Star in a Movie About Taylor Swift? She Says...
-
The pandemic sent hunger soaring in Brazil. They're fighting back with school lunches.
-
FBI raids New York City apartment of Polymarket CEO Shayne Coplan, reports say
-
Will TJ Watt play in wild-card game? JJ Watt says Steelers LB has Grade 2 MCL sprain
-
Packers vs. Cowboys playoff preview: Mike McCarthy squares off against former team
-
Live updates | Fighting near central Gaza hospital prompts medics, patients and others to flee south