RICHMOND, VA (WWBT/WXIX) - Far too many Americans live paycheck to paycheck, with no real savings.
If an expensive emergency hits, there’s no safety net available to you.
A recent report from the Federal Reserve Board found 40 percent of Americans couldn’t handle an unexpected $400 expense!
A new report makes it clear some common scenarios would cost quite a bit more than that.
Personal finance site GoBankingRates.com did the math on several common emergencies, using data from the Census Bureau, FEMA, Home Advisor and other sources.
A job loss is a financial emergency that most people fear.
A job loss would cost your family nearly $29,000, based on six months’ worth of median income lost.
A natural disaster, such as a hurricane or tornado, would cost your family about $7.200 out of pocket, using national averages, though your own costs would depend on your insurance provider.
And if your house floods and you don’t have flood insurance, count on nearly $27,000 in losses you’d need to cover.
Medical emergencies cost the average American about $1,300, though that varies widely depending on your insurance.
It’s important to remember the number one reason for bankruptcy right now is medical bills.
That's all hard stuff to think about, but these things happen to Americans every day, which means you need to be prepared.
It’s recommended you save up six months’ worth of living expenses, just in case.
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