You have probably been told that it is important to have a savings account. It is a good idea to set aside enough money to cover you for three to six months. This is one of the best things that you can do in order to protect your financial future. You will be better prepared for an unexpected expense such as a car repair or medical bill.
If you have an emergency fund, then you will not have to worry about putting things on your credit card. Despite the fact that this is one of the most important financial tips that one can use, many people still do not follow this advice. Thirty-one percent of people in America have more in credit card debt than they do in their savings account.
The good news is that more Americans today are saving money in the past that they were in the past. Forty-one percent of people in America were not prepared for a financial emergency in 2017. Forty-three percent of people were not prepared for a financial emergency in 2016.
Greg McBride is the chief financial analyst of Bankrate.com. He stated that people have recognized the benefits of saving money. He also stated that the financial crisis has prompted more people to start saving money. Additionally, an increase in household income and decrease in unemployment has made it easier to save.