Bankrate.com's senior financial analyst -- Greg McBride was quoted as saying, "It's disappointing. Nothing helps you sleep better at night than knowing you have money tucked away for unplanned expenses."
According to the survey, only few Americans save enough money in their accounts to cover at least six months of expenses such as -- medical emergency or some other unexpected event in case of a sudden job loss.
The survey also said that 50 percent of those surveyed have less than a three-month cushion and 27 percent had no savings at all. The survey was conducted on 1,000 adults.
Despite reports ofincrease in job security, a higher net worth and an overall better financial situation in the country, the survey showed that savings rates barely changed in past three years.
What is Paycheck-to-Paycheck?
Paycheck-to-paycheck is an expression which is used to describe an individual who would be unable to fulfil financial obligations if unemployed. The person would face such financial crisis as his or her salary is predominantly devoted to expenses.
Such persons have limited or no savings, and are at greater financial risk if suddenly unemployed than individuals who have amassed a cushion of savings.