With high cost of living and inflation, saving money can be almost impossible and that’s leaving some folks feeling stressed about their bank accounts. More than half of Americans (a whopping 58%) are living paycheck to paycheck, according to a survey from CNBC. That includes a third of people with six-figure household incomes.
- At least 53% of Americans don’t even have a penny of emergency savings.
- For those with a household income of less than $50-thousand a year, that number increases to 74%.
- Around 40% of those who do have an emergency fund have less than $10-thousand in it.
- So it’s not that surprising that seven in 10 respondents say they’re stressed about their personal finances.
Experts say emergency savings should be enough to cover three to six months’ worth of expenses, and while that could feel impossible, these steps might help get you started:
- Set a goal - Having any money set aside for emergencies is better than nothing, so whatever you can manage to save, do it. Look at your bills and think about unexpected expenses that could come up related to your car, home, pet and kids. Come up with a savings goal and figure out how much you can spare every month to contribute to it.
- Automate payments and savings - Ease some of your financial stress by setting up recurring bill payments and transfers to savings.
- Manage your expenses - Budgets are your friend here and can help you create realistic expectations for your money. Look for places to save, like entertainment and going out to eat, and make sure you’re not paying for any subscriptions you’re not actually using.
- Use one-time savings opportunities - If you get a tax refund, consider using it to pay off debt or adding it to savings. If you get money for your birthday or a holiday, try to use part of that for your emergency savings fund as well.
Source-Yahoo Finance
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