According to an article published by Yahoo Finance, “About 57 million Americans have no emergency savings.” Some may have thought Americans around ages 18-24 would be in the worst shape, but, to much surprise, actually Americans ages 53-62 are the weakest link. According to the article, about 32 percent of younger baby boomers claim to have no money set aside in an emergency fund. Much of the confusion stems from the fact that it seems more practical that those who are younger would not only be more financially illiterate, but also would have less obligations to have money for emergencies set aside.

The article goes on to mention that a major contributor to the aforementioned group of Americans 53-62 having less set aside than others stems from the effects of prolonged unemployment due to the financial crisis that occurred about a decade ago. This is problem that could be very costly, no pun intended given the potential increase in the cost of medical expenses

As for the bigger picture, Americans are actually getting better at saving. Information collected by financial service company Bankrate shows that those who have enough saved to cover three to five months has gone up from 16 to 17 percent in the last year. Also, those who have six or more months worth of expenses stashed away in savings has improved from 28 to 31 percent. Bankrate mentioned that this was a record high since the company started data seven years ago.

With those statistics being mentioned, it is clear that overall Americans do have a seemingly secure grasp on the concept of an emergency fund. So what exactly are some of the important reasons to set aside some of your earnings for a “rainy day?” First we have all heard the saying “accidents happen,” right? Well, what if that “accident” is automotive, whether with another car or not, an injury to yourself or anyone in your family, or anything health related? Of course, in most cases, insurance could very well be the solution, but not always?

The same can be said when it comes to your home, things leak or break down. Despite how much of a pain in it may be, not recognizing the possibility, which could be done be not putting aside any money for it, will not make it just go away. The point of this all is that you never know what is going to happen to you, and it’s essential to be financially prepared.

You are probably wondering, how much is “enough” to have saved away? Going back to the Yahoo article, Bankrate chief financial analyst, Greg McBride, suggests that about six month’s worth of expenses should be a pretty comfortable amount to have set aside. However, he does go on to say that if someone is the sole breadwinner or are in business for themselves, they should set aside even more.

Now, if you are someone who finds saving a bit difficult for whatever the case may be, check out this list of “8 Ways to Save Money on a Tight Budget” on the aforementioned Bankrate’s website.

Rachel Futterman I The Oswegonian