Americans Struggle to Build Emergency Savings Amid High Inflation and Interest Rates
Are you part of the 59% of Americans who are uncomfortable with their level of emergency savings? If so, you’re not alone. The recent Bankrate poll reveals that many people are struggling to build up their emergency funds, especially in the face of high inflation and interest rates since the COVID-19 pandemic.
The data from Bankrate’s yearly emergency savings report shows that the percentage of Americans uncomfortable with their savings has been steadily rising over the years. Despite the common advice to have at least three months of expenses saved up in case of emergencies, only 44% of Americans actually have that amount saved.
It’s concerning to see that nearly 1 in 3 people have no emergency savings at all, with millennials being the generation with the highest percentage of no savings. Additionally, more than 1 in 3 Americans have more credit card debt than emergency savings, which can put them in a precarious financial situation.
The good news is that more people are recognizing the importance of both paying down debt and increasing emergency savings simultaneously. By automating savings and setting up a dedicated savings account, you can start building your emergency fund even if you’re starting from scratch.
If you’re unsure about how much you need to save or where to start, Bankrate offers helpful tips on how to build your emergency fund amidst high inflation. By following these tips and making saving a priority, you can work towards a more secure financial future.
Remember, it’s never too late to start saving, and even small steps towards building your emergency fund can make a big difference in times of need. Take control of your finances and start saving today.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.