Savings goals begin with having enough for emergencies, then move on to having enough to see you through a job loss and, finally, to having enough for retirement. A new study finds that most Americans aren’t even getting past the first stage.
Most Americans Have Inadequate Emergency Funds
The author of the study, Bankrate, recently found that 63% of Americans can’t afford a $500 car repair or a $1,000 emergency room visit.
Just 37% of U.S. adults have enough savings to pay for these unexpected expenses.
In times of emergency, 23% say they would reduce their spending on other things to make ends meet, and 15% would use credit cards.
Fifteen percent would have to borrow from family or friends, Bankrate said.
This is a grim set of findings. Having enough saved for emergencies is not only the first big goal of saving, it is also the one that offers immediate relief to financial stress.
Reduce Your Stress
You can certainly sleep better at night knowing that you have enough cash to handle life’s emergencies.
Of course, the lack of emergency funds in Americans’ accounts only serves to highlight the larger problems people are having later in life, when they need funds for retirement.
At Mid Oregon We Can Help
If you’re in the same boat as these 63% of Americans, you need to have a savings plan. You’d be surprised at how much you can save each day/week/month just by making a few simple changes.
Mid Oregon Credit Union can really help you to put that plan together. CU professionals are experienced in these matters after all, and we will be happy to sit down with you and map out a strategy for achieving short, medium and longer-term savings goals.
Our Savers’ Club is the perfect tool to get started in building your emergency fund, or for any other short & medium term savings objective you might have. For longer term goals like retirement, we have the professional support you need there too.
So, come and see us at Mid Oregon, It’s the start of a new year, so there’s no better time than now to reduce your financial stress levels.