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Americans' feelings on financial security

 

Bankrate.com's Financial Security Index rocketed to a new high this month, climbing to 102.7. Any reading over 100 indicates improved financial security compared to the previous year, and this is the fourth consecutive month that consumers have noted improved financial security. Specifically, consumers feel more secure in their jobs, more comfortable with their debt, report higher net worth and say their overall financial situations are better.

Those feeling more secure in their jobs outnumber those feeling less secure by a 2-to-1 margin. Only 17 percent report lower net worth than last year -- a new low -- and just 1-in-5 Americans feels their overall financial situation is worse now than one year ago, tying the lowest reading.

But it wasn't all good news, as Americans continue to express discomfort with their level of savings, with those less comfortable outnumbering those more comfortable by nearly 2-to-1. And it's no wonder, looking at the lack of progress Americans have made in establishing an adequate savings cushion. Just 24 percent of Americans have enough savings to cover at least six months' expenses, virtually unchanged compared to 2011 and 2012. At the other end of the spectrum are the 27 percent of Americans that have no emergency savings whatsoever, further highlighting how little progress Americans have made in moving the needle of emergency savings.

For more information on this month's Financial Security Index, just visit Bankrate.com. I'm Greg McBride.

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