The fact that nearly 60% of Americans are just one emergency away from financial ruin is incredibly upsetting. A $1,000 expense shouldn’t be a crisis for anyone, yet here we are. People are working hard, but it feels like they’re stuck in a never-ending cycle of rising costs and stagnant wages.
59% Of Americans Don’t Have Enough Savings For A $1,000 Emergency: Report
Most Americans cannot afford a $1,000 emergency expense, with inflation and high interest rates affecting their ability to save adequately, according to a recent survey by consumer services company Bankrate.
A full 59 percent of Americans aren’t in a position to use their savings “to pay for a major unexpected expense, such as $1,000 for an emergency room visit or car repair,” said a Jan. 23 report from the company.
This is up from 56 percent a year back.
“We are essentially a paycheck-to-paycheck nation,” said Mark Hamrick, senior economic analyst at Bankrate. “Fewer Americans have the equivalent of a financial safety net to cover inevitable unexpected expenses, despite low unemployment and steady growth.”
To help alleviate the financial crunch, President Donald Trump issued an executive order for delivering “emergency price relief” for families and tackling the cost of living crisis facing America on his first day in office. The 12-month inflation rate, which has remained below 3 percent since July, has risen for the past three months.
Bankrate said Americans have been struggling against a “number of economic headwinds” over the past several years, including a slowing job market and high inflation.
