Can your household budget cover unexpected expenses?
Do you have a "Rainy Day Fund"? A little extra cash set aside for those unexpected but seemingly inevitable and costly events we all have to deal with -- like car repairs, a leaky roof or ER visits?
If so, then you're in the minority. According to a new survey from Bankrate.com, only 38 percent of Americans have enough money in their saving accounts to pay for such expenses.
According to the telephone poll of over 1,000 Americans in the continental U.S., more than one-fourth of those surveyed said they would have to raise the money needed by reducing their spending elsewhere; 16 percent said they'd borrow the funds from friends or family, while 12 percent would resort to their credit cards.
The ability to use savings for unexpected expenses, says BankRate.com, increases with a person's age, income and education level. Forty four percent of senior citizens surveyed said they had enough savings to cover an emergency, compared to one-third of the Millennials polled.
And nearly two-thirds of people with annual household incomes of $75,000 or more say they have the savings needed for an unexpected event, a number that's two and a half times greater than people whose household income is under $30,000.
It also noted that 82 percent of those surveyed say they keep a household budget, a rise from 60 percent in 2012 -- as more Americans attempt to put their financial houses in order following the Great Recession.
But still, analysts remain concerned about the number of people living on an economic tight rope.
"Without an adequate rainy-day fund, we are all living on a very slippery financial slope, Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling, said in a press release.
"The unexpected, unplanned expense is going to rear its ugly head and usually at the most inopportune time," she added. "Things as small as a flat tire or one trip to the emergency room can wreck the budgets of those who do not have an adequate amount in their savings account."