Nation Of Spenders Needs To Save

The majority of Americans have enough money for daily expenses, but less than half are able to pay for a major purchase or a significant home repair.

If you read between the lines, these results of a recent Gallup Poll clearly indicate that more than half of Americans lack a sufficient emergency or rainy day fund.

That’s worrisome.

Financial experts recommend having at least six months of expenses in an account that’s easily accessible, but off limits except for emergency situations.

Not having cash on hand can leave you relying on credit cards during a crisis and then paying hefty bills afterward.

Perhaps that’s why credit card debt is on the rise.

Worst-case scenario: You could face unpaid debts and a serious hit to your credit score.

The poll also found that the most challenged are those making less than $24,000 a year, but most people don’t begin to feel comfortable until they earn $60,000 a year.

At that salary, 63% reported feeling able to make a major purchase.

That’s still not enough.

On the other hand, no income category of adults particularly worries about money or spending.

The group most worried? Those earning less than $24,000 a year. Just 40% say they are concerned with how much they’ve spent, according to Gallup.

“Most Americans are getting by financially and do not worry about what they are spending on a daily basis, but a majority do not have much of a financial cushion for emergencies,” according to Gallup. “Less than half feel ‘good’ about the amount of money they have to spend, and relatively few can do what they would want to do financially.”

We get that life is expensive, but living hand-to-mouth isn’t a viable long-term financial plan.

How financially prepared are you? Take our poll.

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