NORFOLK, Va. — It's important to plan for an unexpected crisis because life doesn't always go as planned. But if you haven't been saving up an emergency fund, you're not alone.
A recent study from Bank Rate found that only 44% of Americans could financially handle a $1,000 unexpected expense. As many as 66% of participants in the study would be worried about their finances if they lost their main source of income.
Of those who haven't been saving up, 21% said they could use their credit card for necessary expenses. About 10% of Americans said they would consider asking a loved one to borrow money, and just 4% said they would have to take out a personal loan.
Many are blaming their lack of savings on high inflation. Experts say it's best to save three to six months of expenses.
The best way to start saving is to create a new budget where you include the money for your emergency fund.