Americans are living right on the edge — at least when it comes to financial planning.
Approximately 62% of Americans have less than $1,000 in their savings accounts and 21% don’t even have a savings account, according to a new survey of more than 5,000 adults conducted this month by Google Consumer Survey for personal finance website GOBankingRates.com. “It’s worrisome that such a large percentage of Americans have so little set aside in a savings account,” says Cameron Huddleston, a personal finance analyst for the site. “They likely don’t have cash reserves to cover an emergency and will have to rely on credit, friends and family, or even their retirement accounts to cover unexpected expenses.”
Me, I’d like to know what kind of emergency manages to cost only $1000.
That said, I’m not one of the 62 percent — but I’m not so far away that I can justify bragging about it. I am, however, over 59½, which means that if something Dreadfully Terrible comes up, I can tap the 401(k) without the early-withdrawal penalty, though this is not something I particularly want to do, and besides it takes a couple of weeks for Girls Just Want To Have Funds (not its real name) to cut a check.