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Study Indicates Many American Households Lack Savings for Emergencies

It's suggested that you have at least 3 months of savings to cover basic living expenses at all times.

I believe this study has a lot of merit and it is part of the discussion I have with all home buyers. Most have a natural tendency to want to put down as much as possible, often using up all their savings. I always coach prospective buyers not too use all of their savings as a down payment. You ask why?

What happens if a furnace, refrigerator or your car breaks down? If you have used all, or most of your savings, when problems show up and there is no savings, the next step is to use a charge cards, which starts a never ending cycle.

Would you rather pay today’s interest rates that you pay on a mortgage or interest rates you pay on a credit card?  

Click here for the article: Study: Nearly Half of American Households Lack Savings for Emergencies

By: Shane Li

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

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