Study: American’s Are Woefully Unprepared For A Financial Emergency!

By | October 7, 2015

A majority of Americans have less than $1,000 in savings!

In the old days, and by that I mean pre-2008 financial crisis, many Americans counted the equity (difference between a property’s value and money owed on that property) in one or more pieces of real estate as the basis for their retirement planning. At the time this seemed to be a valid plan as prices went ever higher on a fairly steep trajectory.

For many that retirement plan came to a screeching halt as home prices fell with many property owners finding themselves underwater on their homes or CRE (the value of a property is worth less than the money owed on it).

In some markets of which New York City a prime example, the post-2008 bounce has been strong due in no small part to foreign investors looking for a safe haven for their money. But in many other markets around the country, price improvement has definitely been more on the tepid side.

But Just How (Un)Prepared Are Americans For A Sudden Financial Emergency?

In other words were something to go wrong and money was needed immediately, do Americans have access to it?

While of course there are other vehicles through which people save money, the frightening result found in a survey conducted by GoBankingRates.com, is that a majority of Americans have little to no liquid funds available for an emergency.

“How much money do you have saved in your savings account?”

The findings? According to a survey of more than 5,000 adults, 71% of those asked the question above have $1,000 or less in a savings account available for an emergency!

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It’s worrisome that such a large percentage of Americans have so little set aside in a savings account,” said Cameron Huddleston, a personal finance expert and columnist for GOBankingRates. “It suggests that 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.

For a more in-depth look at saving habits by age, gender and income, visit the article at GoBankingRates.com here.

Michael Haltman is President of Hallmark Abstract Service in New York. He can be reached at mhaltman@HallmarkAbstractLLC.com

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