Louisville, KY—August 1, 2017—One indicator of economic wellbeing is the ability to withstand a financial emergency, yet nearly half of Americans are ill-prepared to face any sort of financial challenge. “I’ve written and spoken about this issue before, but it bears repeating because this truly is a national crisis: The single worst money mistake you can make is to fail to maintain a cash cushion for emergencies,” said Carla Dearing. Carla is CEO of SUM180, an online financial wellness service SUM180 is an online financial planning service designed to make financial planning simple and affordable.
While the “Great Recession” technically ended in 2009, nearly half (49%) of Americans are still living paycheck-to-paycheck, according to . Further, 61%—52% of men and 69% of women—reported that they don’t have enough in an emergency fund to cover six months’ worth of expenses. According to survey results released in May by HomeServe USA, 19% of Americans have nothing set aside to cover an unexpected emergency and nearly 31% of Americans don’t have at least $500 set aside to cover an unexpected emergency expense. Survey results released by MetLife in May reveal that 49% of employees are “concerned, anxious or fearful about their current financial well-being.”
“The lack of a financial safety net is an incredibly precarious and stressful situation to be in. Eventually, an event like a job layoff or a medical emergency will happen to most of us. Without an emergency fund, this can trigger debt that gradually spirals out of control,” Carla continued. “It’s only a matter of time before we’re all faced with an emergency expense. If you assume friends or family will be able to help when an emergency arises, you may be unpleasantly surprised when the time comes. No matter how small or large your income, you must have an emergency fund,” Carla said.
Specifically, Carla suggests that individuals—no matter their financial standing—find a way to:
· Increase their monthly savings.
· Deposit as much of that savings as possible into an easily accessible savings account until they’ve accumulated enough to cover about six months’ worth of expenses.
· Build up another 18-24 months of financial cushion to weather more serious emergencies.
To help individuals find ways to save, Carla suggests taking a “No Spend Month.”
“Eliminate all non-essential spending for a month. The simple act of sorting your expenses into “wants” vs. “needs” for one month can be eye-opening and liberating. You’ll find it easier to sacrifice luxuries like expensive dinners or a vacation when you understand what you stand to gain: security and peace of mind,” Carla concluded.
SUM180 is an online financial wellness service designed to make planning and dealing with your money simple and affordable.
· SUM180 meets people where they are. SUM180 plans are personalized to help people wherever they are right now on their financial journey; whether they’re just beginning, starting over or well on their way.
· SUM180 plans are simple. They start with only the three (3) most important next steps, making them easier to accomplish, and gives clients a clear picture of where they are.
· SUM180 doesn’t assume clients want to become financial experts to meet their financial goals. SUM180 provides the tools they need, without overwhelming them with “education” and details they don’t need.
· SUM180 offers a community for users, unfiltered, which allows them to explore and share.
· SUM180 serves; never sells. Earning and keeping client trust is SUM180’s highest priority. SUM180 never makes commissions from any of its recommendations, ever.
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Robin Schoen Public Relations