Life can be unexpected. Accidents, emergencies and repairs never come at a good time. Even if you plan for your financial future, sometimes you will have an expense you didn’t anticipate.
Many people are unprepared for urgent pop-up expenses. About 56% of Americans can’t pay for an unexpected $1,000 bill with their current savings, according to a Bankrate telephone survey from January 2022.
One in four Americans (25%) don’t have an emergency fund. Without emergency savings at their disposal, these individuals turn to credit cards or loans to pay for unforeseen expenses.
You can help your future self by setting aside money for emergencies.