Three Months Worth of Savings


Photo credit: 401(K) 2013

Do you have three months worth of savings? That is the minimum amount of funds many financial planners recommend having for emergency.

This article published in The LA Times says “nearly 44% of American households are one emergency away from financial ruin.” Furthermore, nearly a third of Americans have no savings account at all.

While many budgets are recovering from recessions, living paycheck to paycheck could prove disastrous should job loss or unforeseen illness become a factor.

The U.S. household consumer debt profile shows the following:

  • Average credit card debt: $15,422
  • Average mortgage debt: $149,782
  • Average student loan debt $34,703

Read more about debt statistics here.