- 39 percent of Americans cannot cover a $1,000 expense
- You should have three to six months of household expenses saved
- Make small goals and celebrate when you reach them. Then, build on that success.
An unexpected expense may be too much for many Americans to handle.
According to a bankrate.com study, only 39 percent of people in the United States would be able to pay for an unexpected $1,000 expense, with 20 percent saying they would have to use a credit card.
Financial advisers recommend having three to six months of expenses saved.
CLICK HERE TO SEE ALL 10 WAYS TO SAVE.
To build up to that level, Tim Cerebe with Freedom First Credit Union says to set smaller goals and build up from there.
"If you haven't done a good job of saving money at all, set your goal at $200, set it at $500, whatever that is, then celebrate your success," Cerebe said.
Once you hit that first goal, set another and watch the savings add up.