Friday, July 20, 2012

Almost half of Americans couldn't last three months on savings

Almost half of Americans, 49 percent, don't have enough emergency savings to cover three months' expenses, according to a recent survey by Bankrate.com.

One of the reasons Americans don't have big emergency funds is due to stagnant income and rising household costs, said Greg McBride, a senior financial analyst at Bankrate.com.

"That's not only squeezing people's ability to spend, which is why the economy can't get out of first gear, but it also impacts their ability to save," McBride said.

In 2011, 46 percent of Americans didn't have an emergency fund to cover three months' expenses, according to the survey. In addition to that, 28 percent reported having no emergency savings at all, up from 24 percent in 2011, and just 25 percent said they have an emergency fund to cover six months' expenses.

McBride said many people have been forced to spend their emergency funds as a result of the bad economy. Deseret News

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