In our latest research, we discovered that having as little in savings as $250 made a huge difference in helping people keep the lights on, stay in their homes, and avoid taking on high-cost debt. We all want to aim for 3-6 months of savings but right now at least saving $250 may still help.
- Staying in your home: People with balances above $250 are 71% less likely to have to move for financial reasons
- Avoiding high-cost debt: People with balances above $100 are 83% less likely to need to avoid things like payday loans, auto-title lending, rent-to-own, and pawn shops
- Keeping the lights on: People with balances above $100 are 95% less likely to have their utilities shut off
- Feeling less financially stressed: People with balances above $100 have a 61% greater likelihood of financial satisfaction
If you’re looking to boost your emergency fund, here are a few resources you may find helpful:
- Help if you’re struggling to pay your bills during the COVID-19 crisis
- What to do if you have a lot of debt
- 6 steps to create the perfect budget
- Deciding whether to rent or buy a home
