Americans lack emergency funds

Savings goals begin with having enough for emergencies, then move on to having enough to see you through a job loss and, finally, to having enough for retirement. A new study finds that most Americans aren’t even getting past the first stage.

The author of the study, Bankrate, recently found that 63% of Americans can’t afford a $500 car repair or a $1,000 emergency room visit.

Just 37 percent of U.S. adults have enough savings to pay for these unexpected expenses.

In times of emergency, 23 percent say they would reduce their spending on other things to make ends meet, and 15 percent would use credit cards.

Fifteen percent would have to borrow from family or friends, Bankrate said.

This is a grim set of findings. Having enough saved for emergencies is not only the first big goal of saving, it is also the one that offers immediate relief to financial stress.

You can certainly sleep better at night knowing that you have enough cash to handle life’s emergencies.

Of course, the lack of emergency funds in Americans’ accounts only serves to highlight the larger problems people are having later in life, when they need funds for retirement.

Travis Credit Union can help

If you’re in the same boat as these 63 percent of Americans, you need to have a savings plan. You’d be surprised at how much you can save each day/week/month just by making a few simple changes.

Stop by a branch or call our Member Service Center at (800) 877-8328. Our friendly Travis representatives will listen to your concerns and offer financial advice that fits your needs. For more information about the products and services we offer, visit www.traviscu.org.

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