Federal study finds 32% of Americans have no emergency fund for disasters
LINCOLN, Neb. (KLKN) – With wildfires raging in Western Nebraska and flooding in Kentucky, new research shows that many Americans are unprepared for these disasters.
The number of billion-dollar weather or climate disasters in the United States has increased greatly between the 1980s and the 2000s, according to a federal government report.
The latest Federal Emergency Management Agency report from 2020 shows that 68% of adults have set aside at least some money for an emergency, while 32% have nothing saved.
It also reports that 77% of households have homeowners or renters’ insurance, but only 22% have a flooding insurance policy of some kind.
Eli Mardock, a financial advisor for Stonebridge, says that to prepare for an emergency or disaster, you should try to have 3 to 6 months of income set aside in savings.
“Even if it’s just a little bit, you’ve got to put yourself in the position where if something unexpected does come up, whether it’s a disaster or whether it’s inflation, it’s really important for people to focus on that emergency fund so you don’t have to go into debt,” Mardock said.
He also says the best way to save up this kind of money is to put a small amount into savings every month, even if it is just a few dollars.