It does not take a million dollars to achieve the higher financial welfare index New search From the investment company Vanguard. Instead, it’s something more possible: the African at least $ 2000 in an emergency savings account.
A greater improvement in the financial welfare of people with an income of more than $ 500,000 or more than a million dollars has been found, and a survey of more than 12,000 investors was found in the vanguard.
The results come as many Americans feel more financially stress, with a A separate study Among Primerica, I found that about half of the middle -class families expect to be financially worse in 2026, which is nearly twice the share in December, due to fears of the cost of living and the economy. Paulo Costa, the behavioral economist and the financial plan approved in Vangard, who participated in the composition of the research, indicated that taking small steps to build an emergency savings account can prove that it helps to reduce financial anxiety.
“What is strong in this research is that it is not a lot of money to get peace of mind,” Costa told CBS Moneywatch. “The first $ 2000 has a big difference.”
Although it may seem that obtaining a million dollars of assets must enhance the financial welfare more than $ 2000 in the savings account, the results show the importance of preparing for unplanned expenses. He said that the average cost of the emergency state is about $ 2000, which means that the presence of this cash on hand gives people confidence that they are able to deal with sudden pressure.
“When is there $ 2000 more than a million dollars? It is when it comes to emergency savings,” said Costa. “The goal of emergency savings is that these funds are easily available if you need it. Many people have money, for example, in retirement accounts that may have some requirements about when you can withdraw these funds and may have some tax consequences and some penalties.”
Retirement assets are generally not available to cover unexpected expenses, as people who are under the age of 59 1/2 incurred 10 % penalty for getting money. But getting $ 2000 is dedicated to a bank account, which means that you got the peace of mind that will be able to deal with a sudden bill or a medical bill.
The study found that people with $ 2000 in emergency savings usually spend about two hours less every week thinking about their financial resources for no savings.
How many people can deal with emergency expenses?
Certainly getting $ 2000 of savings can be out of money for many Americans, especially those who suffer from low income, or struggle with debts or who reside in an area with a High cost of living. Vanguard scanning only includes people who have investment accounts in the company, which indicate that they reach 401 (K) and other types of investment accounts that Many Americans lack.
Almost 4 out of every 10 Americans say they do not have money at hand to pay the price of emergency expenses at a value of $ 400, according to L. research From the federal reserve.
However, it seems that more Americans get rid of money for a rainy day, as a Primerica study found that 64 % of those surveyed in March said that the emergency fund was not less than $ 1,000, an increase of 58 % two years ago.
Costa said that even if it was saving $ 2000 away from hand, you can start saving less than $ 10. He said that the best idea is to find a strategy that suits you, whether it is in the budget mode or automation of savings by directing a certain amount to a dedicated account with each salary.
“I love an idea,” away from view, away from mind, “he said, so when you get salaries, you immediately send money to your savings account.” “By saving $ 50 a week, you will build up to $ 2000 in less than a year.”
He added: “Keeping something is better than providing anything. So I started just starting, and this is really a big difference.”
