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SPRINGFIELD, Mass. (WWLP) – One-third of Americans do not have an emergency savings fund, raising concerns among financial experts about the financial resilience of many households.
According to a report by NewsNation, 63% of Americans say that the rising cost of living has made it more difficult to build and maintain emergency funds. This financial strain is leaving many without a safety net for unexpected expenses.
“Shock. Well, not really shock, because I understand how tough it is out there. People are living paycheck to paycheck,” said Mark Teed, Senior Vice President of Raymond James & Associates.
“It’s not a surprise at all. I think we all know since COVID expenses have gone up across the board,” said Gordon Oliver, Director of Business Development at Cambridge Credit Counseling.
With the rise in living costs, rainy day funds are drying up. Nearly 29% of Americans could not afford an unexpected expense over $400, highlighting the precarious financial situation many face. The median emergency savings fund for those surveyed is only $500, which is insufficient to cover many common emergencies, such as car repairs or medical bills.
“Psychologically, it wears you down because you know if anything happens, you just can’t handle it. The dog needs to go to the vet, anything. You need a new roof or whatever, so you’ve got to have an emergency fund or at least some access to some money,” Teed explained.
Nearly half of Americans report feeling stressed about their current savings, prompting experts to recommend budgeting as a way to improve financial security.
“The number one thing that we always try to get people to consider is their budget,” said Oliver. “If you charge everything it’s pretty easy to figure out where it is. If it’s three coffees a day at six bucks a coffee, you know that’s a pretty easy one to cut out. If it’s going out on Friday and Saturday, maybe give up one of those nights,” added Teed.
By making small adjustments to spending habits, individuals can potentially save enough to set aside for emergencies, reducing reliance on credit card debt when unexpected expenses arise.
All facts in this report were gathered by journalists employed by WWLP. Artificial intelligence tools were used to reformat from a broadcast script into a news article for our website. This report was edited and fact-checked by WWLP staff before being published.
WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Watch the 22News Digital Edition weekdays at 4 p.m. on WWLP.com.
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Nick Antonakas
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