Half Of Americans Are Broke

A scary situation indeed. Half of all American workers do not have enough savings to support their families for 1 month. This is because Americans are consumers, addicted to debt and spending. Although these people do not hav enough savings to last just one month, most have big screen TVs, drive new cars, have large cable bills and have cell phones. We all need to prioitize our financial lives and build up some emergency savings. Tough times are here to stay, we must be prepared for it.-Lou

34 Percent of U.S. Workers Surveyed Have Only One Week or Less of Savings to Cover Expenses if Laid Off from Work

MAYNARD, Mass.--(BUSINESS WIRE)--Despite the fact that most financial advisors caution workers to save the equivalent of six months’ salary in preparation for troubled economic times, a recent Monster Meter Poll reveals more than one-third of U.S. workers surveyed on Monster.com admit they have only one week or less of savings to cover living expenses if they were to be laid off from work. Monster.com is the leading global online career and recruitment resource and flagship brand of Monster Worldwide, Inc.

Over a one week period beginning July 6 and running through July 13, more than 16,000 visitors to Monster.com participated in the Monster Meter Poll question “If you were laid off without severance, how long would your savings cover your living expenses?” Thirty-four percent of U.S. workers report their savings would last one week or less if they were laid off, compared to 20 percent who say their savings would last six months or longer, according to a nationwide poll conducted by Monster.com®.

“In a recent Monster.com Career Advice article, Laid Off? Six Steps to Manage Your Finances, most financial advisors suggest saving the equivalent of six months’ salary to tide you over if you lose your job,” said Norma Gaffin, director of career content, Monster.com. “However, experts also agree, workers will likely need more savings, especially if they have a family and are the primary wage earner.”

If You Were Laid Off Without Severance, How Long Would your Savings Cover Your Living Expenses?

One Week or Less: 34%
2-4 Weeks: 16%
1-2 Months: 16%
3-5 Months: 14 %
6 Months or Longer: 20%

According to a recent Marketplace public radio broadcast, the size of the suggested emergency savings pot has evolved in recent years. “For a long time, the rule of thumb was to set aside 3 to 6 months of easily accessible savings. That number is now 6 months to 1 year.” Additionally, finance experts featured in SmartMoney.com’s article – 4 Smart Money Moves for a Down Economy – also advise workers to watch every dime by creating and sticking to a budget.

More...