According to a Bankrate survey, only 46% of U.S. adults have enough emergency savings to cover three months of expenses. <\/p>\n
ST. LOUIS \u2014 It’s what some call their “rainy-day” fund. As the saying goes, “when it rains it pours,” so that’s why it’s vital to have some money tucked away for when life happens.\u00a0<\/p>\n
The idea of an emergency savings is to have a safety net when the unexpected happens. That includes things like natural disasters, medical expenses, car repairs or even a job loss, but multiple studies show that most Americans cannot afford an emergency.\u00a0<\/p>\n
According to a survey<\/a> conducted by the Federal Reserve Board, two out of five people can’t cover an expense that costs $400.\u00a0<\/p>\n How many people actually have emergency savings?<\/p>\n 5 On Your Side sat down with Rob Read to get the answers. Read’s been a financial advisor since 2001 and is the Founder Investment Advisor of CWR Private Client Group<\/a>.\u00a0<\/p>\n “It’s tough, but we just spend, we love spending money, and unfortunately we don’t like saving money,” he said.\u00a0<\/p>\n It’s something most of us aren’t great at, but it’s critical for when life throws us a curveball. While some are expecting the unexpected, that’s not the case for everyone. According to a Bankrate survey<\/a>, only 46% of U.S. adults have enough emergency savings to cover three months of expenses.\u00a0<\/p>\n Read wishes more people understood the importance of having emergency funds.\u00a0<\/p>\n “There is a lack of financial literacy out there and it should start in high school, but they don’t, it’s all about the other things in high school. I try to do a lot of education based on how we get our high schoolers prepared for college, for working, whatever direction they decide to go,” he said.\u00a0<\/p>\n How much money should you have tucked away for when things don’t go as planned?<\/p>\n According to Read, it depends.<\/p>\n “If you’re a single-person household and you’re a single earner, probably six months because you have nobody else to rely on for that money. If you’re a dual household and you’re not spending all of your paychecks, maybe three months,” he said.<\/p>\n By expenses, Read doesn’t mean your paychecks, but how much money you actually need to survive, like paying for your home and food.<\/p>\n “When I say food, it’s just regular food, like grocery store food, because if you’re out of a job, you’re probably not going out to eat that much,” he said.<\/p>\n What can you do today to start building an emergency savings?\u00a0<\/p>\n