Editor’s note: This is a transcript of the audio file.
Do you have a sufficient emergency savings cushion? If not, you have plenty of company. I’m Kristin Arnold with your Bankrate.com Personal Finance Minute.
“Almost one-quarter of Americans, almost 24-perecent have an adequate emergency savings cushion, enough to cover six-month’s worth of expenses. But an equal 24-percent have nothing, at all. And just to underscore the importance of savings – there are currently more than six million Americans who have been out of work, longer than six months.”
And out of those surveyed who is more likely to have enough emergency savings?
“When you look at those who are more inclined to have an adequate savings cushion of six-month’s worth of expenses, it’s those in their 50’s and 60’s as well as higher income households. But even here, at least half do not have an adequate savings cushion.”
The best way to boost your savings is to pay yourself first…using direct deposit or automatic transfer. To see more of June’s Financial Security Index, just log onto Bankrate.com. I’m Kristin Arnold.