A new report from Investopedia recommends that Americans have approximately $35,000 in emergency savings to stay financially afloat for six months, a figure that accounts for essential costs such as housing, food, transportation, and health care.
But for many, that target remains far out of reach. According to the Federal Reserve, the average amount in Americans’ bank accounts is around $8,000, and roughly 1 in 5 Americans do not have an emergency savings account at all.
The report emphasizes that while the $35,000 benchmark is ideal, any amount of savings is better than none, especially in times of economic uncertainty.
Financial experts continue to urge individuals to save what they can, even in small amounts, as a way to build a buffer against unexpected job loss, medical bills, or other emergencies.
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