If Your ‘Rainy Day’ Fund Is Dried Up, You Aren’t Alone
By John Dodge
CHICAGO (CBS) — About one-half of Americans do not have enough money saved for basic unplanned expenses, such as a car repair or trip to the emergency room for a minor mishap.
About 50 percent have no more than $800 in a “rainy day” fund for emergencies, according to an analysis by Accounting School Guide.
Perhaps even more alarming, 25 percent have no more than $100 saved.
While the economy continues a slow recovery, the level of savings has remained unchanged for the past three years.
The Accounting School also found that median family income has dropped from $53,000 in 2000 to $49,500 in 2010.
On top of that, inflation in three vital areas has exploded over the past 40 years: gasoline (up 20 percent); health care (50 percent) and college tuition (113 percent).
As unemployment rose during the recession, financial experts suggested that people have access to enough cash to cover three months of expenses.
As of 2013, 66 percent of Americans said they didn’t meet that threshold, making them “liquid asset poor.”
Source: Accounting School Guide