A report I saw this morning has that rate as high at 56%!
With all the money floating around, where is it all if no one is saving it?
56% of Americans can’t cover a $1,000 emergency expense with savings
PUBLISHED WED, JAN 19 202212:21 PM ESTUPDATED WED, JAN 19 20229:42 PM EST
https://www.cnbc.com/2022/01/19/56percent-of-americans-cant-cover-a-1000-emergency-expense-with-savings.html
That’s just scary.
Again, that's not taking into account that somebody with less than $1,000 in a savings account may have many times more than that in home equity, 401k savings or available credit.
Since becoming an empty nester, I've managed to put just over 6 months of living expenses into my savings account but when the children were living with me and expenses were high, I still had plenty to draw upon when I had an emergency expense such as a major car repair, a new roof for my house, or a busted water heater. I could put it on my credit card (and pay it down quickly), take out a home equity loan or take out a 401k loan. None of those options were ideal but I never had to really worry that much about emergency expenses as I had options.
Now there are some who truly have no safety net with an emergency expense but it is far less than 56% of the people.