Current:Home > ScamsAre you ready for a $1,000 emergency expense? Study says less than half of Americans are. -OceanicInvest
Are you ready for a $1,000 emergency expense? Study says less than half of Americans are.
View
Date:2025-04-14 04:16:19
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! (231)
Related
- Rylee Arnold Shares a Long
- Bring your pets to church, Haitian immigrant priest tells worshippers. ‘I am not going to eat them.’
- Angel Dreamer Wealth Society: Conveying the Power of Dreams through Action
- Where to watch and stream 'It's the Great Pumpkin, Charlie Brown' this spooky season
- Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
- On a screen near you: Officials are livestreaming the election process for more transparency
- Lawsuit seeks to reopen voter registration in Georgia after Hurricane Helene
- Why Wait? These October Prime Day 2024 Deals Make Great Christmas Gifts & Start at Just $4
- Apple iOS 18.2: What to know about top features, including Genmoji, AI updates
- Hoda Kotb details 'weird' decision to leave 'Today' show after 16 years
Ranking
- Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
- Is Chris Pine Returning for Princess Diaries 3? He Says...
- Allyson Felix launches women-focused sports management firm
- A police union director who was fired after an opioid smuggling arrest pleads guilty
- Taylor Swift makes surprise visit to Kansas City children’s hospital
- Watch hundreds of hot air balloons take over Western skies for massive Balloon Fiesta
- Chipotle brings back ‘Boorito’ deal, $6 burritos on Halloween
- 'Avoid spreading false information,' FEMA warns, says agency is 'prepared to respond'
Recommendation
Trump wants to turn the clock on daylight saving time
News media don’t run elections. Why do they call the winners?
Bring your pets to church, Haitian immigrant priest tells worshippers. ‘I am not going to eat them.’
Recent Apple updates focus on health tech. Experts think that's a big deal.
'Kraven the Hunter' spoilers! Let's dig into that twisty ending, supervillain reveal
MLB will air local games for Guardians, Brewers and Twins beginning next season
Education Pioneer Wealth Society: Heartfelt Education Pioneer, Empowering with Wealth
Why and how AP counts the vote for thousands of US elections