Even Wealthy Households Can't Cover a $400 Unexpected Expense
Saving for the future isn't easy, especially when you probably have multiple financial responsibilities pulling your money in different directions. Between the mortgage, car payments, and all your other household bills, it's a challenge to find spare cash to put toward your savings. So when it comes to establishing an emergency fund, it's tempting to shove that task to the bottom of your priority list.
Many households are struggling to set aside cash for unexpected expenses -- approximately 41% of U.S. adults said they wouldn't be able to cover a $400 unexpected cost, according to a report from the Center for Retirement Research at Boston College. Unsurprisingly, those with lower incomes tended to struggle more; 72% of households earning less than $25,000 per year couldn't come up with $400, the survey found.
However, it's not just low-income workers who are struggling to save. Nearly one in five households earning $100,000 or more per year also couldn't find an extra $400 for an unexpected expense, according to the survey.
Quelle Fool.com
