Wednesday, February 04, 2015

Emergency Cash: How Long Would It Last?

Most households have little money saved for emergencies, according to an analysis of the 2013 Survey of Consumer Finances by the Pew Charitable Trusts. Financial advisors recommend having three to six months of income in liquid savings (cash, checking, and savings accounts). By income quintile, here is how much liquid savings households have for emergencies...

Top quintile: 52 days
Fourth quintile: 30 days
Middle quintile: 21 days
Second quintile: 15 days
Bottom quintile: 9 days

Source: The Pew Charitable Trusts, The Precarious State of Family Balance Sheets

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