How Serious Is the Financial Situation You Are Prepared For?
While emergency funds can be a bit controversial , it’s generally good if you’re prepared for the next unexpected financial event. Except that probably many Americans are not.
As the personal finance website Frugal Rules points out, despite our talk of emergency funds, most Americans aren’t prepared for a sudden financial burden. As of 2013, the Federal Reserve says 52% of Americans will need to either sell something or borrow money to cover the $ 400 cost . According to a Bankrate poll conducted last year , only 38% of Americans could cover the $ 500 to $ 1,000 expense from savings alone.
When preparing or changing a budget, the issue of financial emergencies is important. Not everyone can create a huge emergency fund overnight, but emergencies do not care if you are prepared. How do you deal with financial emergencies? And if you prepared, how did you get there?
Can you handle a $ 400 emergency? | Thrifty rules via Rockstar Finance