Having a six-month emergency savings nest is harder for some generations. According to a new survey from BankRate.com, 66 million Americans do not have emergency savings. One third of Americans ages 36-51 years old (Gen X) have savings. Only 27% of other Americans of all ages have anything saved up.
It is very important to have an emergency savings account of six months liquid cash so that, in the event of an emergency, such as losing your job, medical bills, or auto maintenance you will be covered. But only an astonishing 28% of all Americans, according to the new survey, have put aside any savings into an emergency fund of six months of expenses.
The silver lining if there is one? That percentage has risen by 6% from one year ago. Furthermore, nearly half of Americans older than 71 years-old have enough savings for six months of living expenses.
Millennials have the same saving habits as Gen X, with two thirds reporting at least some savings. The one third without savings should check out ways to save by eliminating debt and alternative money-making methods.
It may be difficult for many millennials to save when they are in low-paying jobs and have crippling student loans. According to the study, half of the Americans with an annual income of $75,000 or more have emergency savings, while more than half of Americans with an income of less than $30,000 have nothing saved. One way to combat this is to check out the Millennial Money Guide, which teaches ways to combat debt and save up for an emergency fund regardless of your income. While saving for an emergency fund competes with saving for retirement, paying off loans, paying rent, making car payments, and all the expenses you incur every month, it still is possible.
It is not your salary that makes your rich, it is your spending habits. -Charles. A. Jaffe
The overall picture appears to be improving, however. June marks the 25th consecutive month that Americans’ financial security has improved, with men reporting more security for the 28th straight month. Women have reported increasing financial security in 16 of 28 months including eight of the past 12. Sites such as MillennialMoneyGuide.com provide guidance and financial clarity for those who need it.
It is no longer the day and age where you need a financial adviser. With the Internet, you can gather the help you need. If you have any financial questions feel free to contact me. I am always happy to help and utilize my experience in the field of money to help out fellow young adults and millennials. Contact me here: firstname.lastname@example.org.
Brian is 25 years old and is the founder of Millennial Money Guide, a financial blog aimed to help millennials battle student loans and plan for retirement. When he’s not blogging, he can be found working out or traveling. If you want to learn more about how to become debt free you can email email@example.com