63% Of Americans Don’t Have Enough Savings To Cover A $500 Emergency

The car brakes go on the fritz. The refrigerator stops refrigerating. The dog gets his paws on a batch of chocolate chip cookies and earns himself a trip to the vet ER.

These are just three of any number of things that could go wrong during the course of the year. Recovering from any one will set you back about $500, which means these scenarios fall closer to the “undesirable inconvenience” category than they do the “massive calamity” one. And yet, nearly two-thirds of Americans do not have enough money in savings to cover the cost of a single one of these unplanned expenses.

According to a brand new survey from Bankrate.com, just 37% of Americans have enough savings to pay for a $500 or $1,000 emergency. The other 63% would have to resort to measures like cutting back spending in other areas (23%), charging to a credit card (15%) or borrowing funds from friends and family (15%) in order to meet the cost of the unexpected event.

– Forbes

Read full article here.