Americans with No Emergency Funds: Progress Made, but Challenges Remain

Editor: Vlad Rothstein | Tactical Investor

 Progress and Challenges: Americans with No Emergency Funds

Updated May 2023

Let’s start with a trending topic before we get into millennials’ lack of emergency funds.

Whenever experts state that something is dead, hated or disliked, one has to start viewing that sector more favourably. Value stocks are likely to start trending upward shortly. We suspect one more wave of pain might be necessary to drive the last holdouts out of this sector.    When the masses state something is dead, the opposite is usually true.  One should buy when the masses are panicking and run when they are Euphoric. Is Value Investing Dead?

 Financial Struggles Continue for Millennials: Emergency Funds Remain Elusive

A recent Bankrate survey reveals that economic uncertainties, including inflation, have significantly impacted Americans’ financial preparedness. The study indicates that only 48 per cent of U.S. adults possess enough emergency savings to cover three months’ worth of expenses, and this percentage has remained stagnant since 2022. The report highlights the struggles millennials face, many of whom do not have sufficient funds for emergencies, leading to discomfort and anxiety about their financial situation. The survey also reveals that building emergency savings is a challenge for younger generations, particularly those with lower incomes.

Furthermore, a substantial portion of the population is burdened by credit card debt, making it challenging to prioritize savings amidst competing financial obligations. As economic factors continue to hinder saving efforts, most Americans find it difficult to allocate funds for emergencies, emphasizing the need for consistent and automated savings contributions. Despite the hurdles, there is a growing awareness of the importance of emergency savings, with more individuals taking small steps towards financial preparedness.

 Emergency Funds: Encouraging Progress in American Savings Habits, Yet Challenges Persist

According to a recent survey conducted by US financial services company Bankrate, almost 25% of US adults admit to having no savings to rely on in case of emergencies like sudden job loss, costly medical visits, or other significant financial burdens.

Surprisingly, the New York-based institution views these survey results as positive news, as the percentage of people with zero savings has reached its lowest point since polling in 2011.

The survey, conducted in June, also highlights that 31% of Americans possess what Bankrate considers to be an adequate savings cushion. While this implies that about two-thirds of the country still falls short on saving enough money, the number of diligent savers has reached its highest level since the survey’s inception seven years ago, marking a 9% increase from 2015.

Overall, the saving habits of Americans are showing signs of improvement, although they are far from reaching the ideal level. Bankrate analyst Greg McBride stated that “Americans are putting money in savings,” expressing encouragement for progress. However, he also stressed the importance of striving to have at least six months’ expenses for unexpected events. Full Story

Other Articles of Interest

Technical Analysis of Stock Trends: Unlock Winning Strategies

Technical Analysis of Stock Trends: Simple Solutions for Success

Technical Analysis of Stock Trends: Master the Market June 24, 2024 In the ever changing and often unpredictable world of ...
In the context of loss aversion, which of the following statements is true about the endowment effect?

In the context of loss aversion, which of the following statements is true about the endowment effect? Let’s find out.

In the context of loss aversion, which of the following statements is true about the endowment effect? Picture this: You're ...
Confirmation Bias: A Ubiquitous Phenomenon in Many Guise

Confirmation Bias: A Ubiquitous Phenomenon in Many Guises impacts investing decisions

Confirmation Bias: A Ubiquitous Phenomenon in Many Guises June 23, 2024 Introduction: The Pervasive Influence of Confirmation Bias in Stock ...
Deindividuation Psychology and Investing: Herd Mentality Unleashed

Deindividuation Psychology and Investing: The Herd Mentality in Financial Markets

Deindividuation Psychology and Investing: Herd Mentality Unleashed June 23, 2024 Deindividuation, a fundamental principle of mass psychology, has intriguing investing ...
What is Behavioral Psychology in Investing: Buy Fear, Sell Joy

What is Behavioral Psychology in Investing: Profit from Panic, Cash Out on Joy

What is Behavioral Psychology in Investing: Buy When Fear Reigns, Sell When Euphoria Peaks June 22, 2024 Behavioural psychology in ...
Hidden Bullish Divergence RSI: Uncover Powerful Buy Signals

Hidden Bullish Divergence RSI: Uncover Powerful Buy Signals

Hidden Bullish Divergence RSI: How to Use Them to Your Advantage June 21, 2024 In the ever-evolving world of technical ...
Key Difference Between Saving and Investing: Let's Find Out

A Key Difference Between Saving and Investing: Huge Capital Gains

Key Difference Between Saving and Investing: Let's Find Out June 20, 2024 Introduction The world of finance often appears as ...
How Panic Selling Affects the Stock Market: Crowd Chaos

How Panic Selling Affects the Stock Market: The Crowd Always Loses

How Panic Selling Affects the Stock Market: Crowd Chaos June 20, 2024  Introduction: The Folly of the Masses In the ...

Profit Peaks Unveiled: Navigating Technical Analysis Patterns

Maximise Profits: Mastering Technical Analysis Patterns June 18, 2024 Introduction  "The stock market is designed to transfer money from the ...
The Intelligent Investor PDF: Dive into Wisdom, Not Just Pages

The Intelligent Investor PDF: Dive into Wisdom, Not Just Pages

The Intelligent Investor PDF: Focus on Facts, Not Files June 18, 2024 The renowned book, "The Intelligent Investor," by Benjamin ...
Why Is the Stock Market Down Today? Here Are 4 Reasons: Let’s Rumble

Why Is the Stock Market Down Today Here Are 4 Reasons? Let’s Rumble

Why Is the Stock Market Down Today Here Are 4 Reasons? June 17, 2024 On any given day, the stock ...
What is the Power of Compound Interest? Unveiling its Massive Impact

What is the Power of Compound Interest? Unveiling its Massive Impact

What is the Power of Compound Interest? Prepare to Be Amazed! June 16, 2024 Introduction: Unveiling the Ancient Secret of ...
What are the benefits of investing early in life? Wealth and Peace.

What Are The Benefits of Investing Early in Life? Wealth and Peace.

What are the benefits of investing early in life? Serenity and Wealth June 16, 2024  Introduction: Unlocking the Power of ...
How Does Time Play an Important Role in the Power of Compound Interest? 

How Does Time Play an Important Role in the Power of Compound Interest? Let’s Find Out.

How Does Time Play an Important Role in the Power of Compound Interest? June 16, 2024 Unleashing the Ultimate Power ...
 Best Stock Options for Beginners: Pure Rubbish, There Is No Such Thing as a Sure Bet

Best Stock Options for Beginners: There’s No Such Thing as a Sure Bet

Best Stock Options for Beginners: Any Claim of a Sure Bet is Pure Rubbish! June 15th, 2024  Introduction: Demystifying the ...

Stock Market Insanity Trend is Gathering Momentum   (Jan 10)

Is value investing Dead   (Jan 9)

Irrational markets and Foolish Investor: a perfect recipe for disaster (Jan 5)

Stock Market Crash Myths and Realities  (Jan 3)

Bull-Bear Markets & Arrogance   (Jan 1)

Will The Stock Market Crash In 2018  (Dec 11)

Has US Dollar Finally Hit Bottom    (Dec 6)

BitCoin Has Done What Precious Metals Never Could  (Dec 4)

Experts Making Stock Market Crash Forecasts usually know nothing  (Nov 17)

1987 stock market crash anniversary discussions- nothing but rubbish ( Oct 24)