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Americans do a terrible job at saving money. There is no getting around that. It takes a lot of time and effort to save money.
This also tends to mirror their preparedness level as well. It’s easy to say this type of thing without facts but this is why I bring you the article here. You will see how this information is collected and what it means.
The emergency fund is so important. I cannot emphasize the importance of cash on hand as well. You have to be able to react when the power is out. When the ATM’s are down you must have an answer if you need resources.
Most Americans dont have any money saved, at all! This problem comes from people living outside of their means. What you might not know is that people who make hundreds of thousands of dollars are floundering in their nation because they are trying to live like millionaires.
Why an Emergency Fund?
The emergency fund is for when the flow of money is hindered. There will come a time when you no longer have money coming in or you no longer have access to the money you are making.
This could come from a personal layoff or a bank run. Even a long term power outage that affects banks will limit access to your money. Are you prepared to go without a paycheck for a month? What about 4 months?
The emergency fund is also the answer to a simple and seamless evacuation. You need money to evacuate. You need it to spend on hotels and any other issues. Having cash on hand assures that you aren’t scrambling, trying to hit the ATM or even concerned about not having money.
Saving money is hard but it will make all the difference in the world if you need the money and you can actually go and grab the cash from a safe.