Even fewer Americans ready for financial emergency
BY FRANCINE KNOWLES Business Reporter email@example.com June 25, 2012 5:06PM
Fewer Americans are saving enough to get through three months of expenses if they face a financial emergency. | Sun-Times Media file photo
Updated: July 27, 2012 6:11AM
Nearly half of Americans don’t have enough savings to cover three months of expenses, according to a survey released Monday by Bankrate.com.
Forty-nine percent of survey respondents said they don’t have that much saved. That’s worse than a year-ago, when 46 percent said that was the case. But Americans are doing a better job of saving than they did in 2006, when 61 percent of Americans said they didn’t have that much saved.
“While we’ve seen some improvement since then, the bottom line is that much more progress is needed,” Greg McBride, senior financial analyst for Bankrate.com and a chartered financial analyst, said
In the latest poll, 28 percent of respondents said they have no emergency savings. Typically, financial planners advise clients to have enough savings to cover six months of expenses. Only 25 percent of poll respondents said they have saved that much.
In a separate survey, Bankrate.com found that among respondents:
◆ 32 percent said they are less comfortable with their savings vs. one year ago — a new low and down from the peak of 47 percent who were less comfortable in August 2011.
◆ Eighteen percent are less comfortable with their debt than 12 months ago, also a new low and down from the peak of 27 percent in October and November.