Contact Us

Study Shows Our Money Is Going… Not to Our Savings – Dollars and Sense

Emergency Savings
Thinkstock

Many financial experts advise keeping at least three months of living expenses squirreled away in case of an emergency, but how many Americans actually do it?

According to research from Bankrate.com, almost half of us don’t have that rainy-day fund, and that’s up a few percentage points from last year. But at least it’s getting better — back in 2006, only 39 percent of Americans had the extra cash in case they needed it.

Still, only a quarter of the people surveyed said they had saved six months of expenses, which is the cushion most analysts recommend, and another quarter said they have no savings at all.

“While we’ve seen some improvement… the bottom line is that much more progress is needed,” said Greg McBride, CFA, senior financial analyst at Bankrate.com. “Having sufficient emergency savings is critical to avoiding high-cost credit card debt when unexpected expenses arise.”

But there were a couple bright spots in the survey, too — 24 percent of respondents said they’re currently in a better place financially than they were a year ago, and only a third said they’re “less comfortable with their savings” now than at this time in 2011.

[Chicago Tribune]

More News from KGAB

Best of the Web

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://kgab.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on KGAB 650AM quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here

Register on KGAB 650AM quickly by logging in with your Facebook account. It's just as secure, and no password to remember!