People often overestimate their ability to handle emergencies.
While people don’t like to think that they are vulnerable to negative life changes, the fact is that the stories of those who have faced difficult personal circumstances reveal that many are not as prepared for financial emergencies as they would like to believe.
Whether it’s life skills, emergency possessions, or simply financial reserves, many people don’t have the financial resources they need to deal with an emergency event regardless of what they may believe otherwise.
Regarding finances, experts recommend having money to pay for several months of expenses in case of a sudden financial downturn. But some public polls show that as many as 57 percent of Americans do’t have $1,000 in savings to deal with an emergency. That amount may also not be enough to deal with a car problem, let alone a job loss or major health issue.
A lack of personal savings can prove to be a significant problem in the event of unexpected emergencies that may occur in life.
If the worst were to happen to you, would you be ready?