Having a strong financial strategy can take a number of factors, and those who aren’t looking at every aspect of their budgeting may be at risk of leaving something out. Savings could be a good place to start, but many Americans are lacking in this category.
Close to 70 million Americans are without an emergency savings account, according to a report from NeighborWorks America. Another 53 million noted that they only have enough money to get them through one month.
Just 28 percent of those polled felt that they would be able to have an emergency fund that would keep them afloat for a year, the report showed. Approximately two-fifths of Americans would be able to hold out for three months on their savings.
“In today’s marketplace, everyone, including those with limited incomes, can set aside some savings for emergencies and work to achieve other financial goals,” said Eileen Fitzgerald, CEO of NeighborWorks America. “We are seeing great results for consumers who use a financial coach to help them start saving, reduce debt and work toward financial goals.”
Despite many people lacking a viable emergency savings fund, many still have hopes of major financial milestones. The report noted that 28 percent of those polled are trying to save for retirement more than any other goal. Approximately 13 percent said they wanted to purchase a home with their savings. Only 5 percent said they are trying to build their emergency savings.
Savings remains thin for some
Further findings noted that Americans are not saving enough money. According to a report from RetailMeNot.com, a total of 48 percent of individuals do not have an emergency savings plan set up to last them one month or more.
“A large percentage of people surveyed report they are living without any sort of financial safety net,” said Trae Bodge, senior editor for The Real Deal by RetailMeNot. “Saving money is just one part of the financial literacy equation. It is also important that consumers spend wisely to be able to afford the items they need. Making small adjustments to shopping behaviors, like utilizing discounts for everyday purchases, in addition to putting away even a small amount each month, are important steps toward achieving overall financial health.”
Those who do have savings are typically in a comfortable position. The report added that the average savings level would carry a person through eight months of expenses.