By Ben Mitchell, USA TODAY
Americans are good at spending but lousy at saving, according to a new report on Americans' finances.
report out Monday from Bankrate.com finds only 24% of Americans have
enough savings to cover at least six months' expenses and only 50% have
less than three months' expenses saved up.
Most alarmingly, 27%
of Americans have no emergency savings at all. According to the
Bankrate.com's press release, those numbers haven't budged in three
"We measure five key components of Americans' financial
security each month, and we routinely find that savings is the weakest
area," said Greg McBride, CFA, Bankrate.com's senior financial analyst,
"Americans have a rich history of living beyond their needs."
the most part, consumers feel confident their finances are in order.
Bankrate.com's June report found that consumers say their net worth is
higher, they feel more secure in their jobs, they're more comfortable
with their debt and their overall financial situations are better.
recent economic gains, though modest, have Americans feeling wealthier,
according to McBride. June marked the fourth straight month consumers
indicated improved financial security compared to the previous year.
still, savings are lagging. Since 2006, there has only been an 11%
increase in people with at least three months expenses saved up. McBride
doesn't believe it's enough.
"People who are less comfortable
with their savings now versus a year ago outnumber people who are more
comfortable by a margin of nearly two-to-one," says McBride, "Since the
recession, many people have realized that a lack of savings leaves them
exposed. But they can't afford to shore up that gap right now."
rising cost of living and stagnant wages have made savings less of a
priority across all income levels. One in seven people earning between
$50,000 and $75,000 have no emergency funds and less than 50% of
Americans earning above $75,000 have adequate savings.