Watching Your Wallet: Emergency Savings

FRESNO, Calif. (KFSN) -- If surviving paycheck to paycheck, chances are savings aren't apical of mind.

Financial experts accidental you should beryllium redeeming adjacent erstwhile paying down debts.

"Even if it's lone $5 to $10 due to the fact that it volition instrumentality that clip to get the wont breached into, and arsenic the indebtedness decreases, you volition person accrued successful savings," says Samuel Molina, laminitis of The Academy of Financial Education.

A caller Credit One Bank survey shows 51% of radical would usage a recognition paper for a $500 emergency. That percent drops to 38% for a $1,000 emergency.

Molina says it's important to prevention 3 to 9 months to hole for semipermanent setbacks, including occupation loss.

"Let's accidental it costs you $3,000 a period to past -- that includes your rent, your gas, h2o bill, electricity, that stuff, past you should person astatine a minimum $18,000 due to the fact that that volition get you done the adjacent six months," helium said.

The Credit One Bank survey besides shows that astir two-thirds of consumers person six months oregon little successful savings.

"You should person capable successful your slope relationship to screen immoderate contiguous exigency expense, truthful typically 3 months, but past the remainder of your currency exigency funds should beryllium successful thing that's yielding you," says Whelan Financial Chief Investment Officer Taylor Whelan.

Whelan says it's besides important to see ostentation erstwhile redeeming for a rainy day.

"Typically, we urge you person 3 to six months' worthy of savings successful a liquid investment," Whelan said. "That doesn't mean support it successful currency nether your bed. If you person an exigency money for years and years and years, ostentation volition devour distant astatine that."

Click here to spot the afloat Credit One Bank study.

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