A Forgotten First Step in Wealth Creation: Emergency Funds
An epidemic of stress grips America. Despite a low unemployment rate, 62% of Americans admit to feeling stressed about money with 31% feeling stressed by it all the time and losing sleep, according to a survey by investing app Stash.
In the short term, that level of stress can cause health problems, reduce enjoyment of life, strain relationships and reduce productivity at work. Over the long term, many people's fears of falling too far behind may come true if there is a decline in the economy, a health problem or a temporary income loss. Without adequate funds to weather those storms, vital bills go unpaid and assets are depleted.
This fear has a basis: have less than $400 in emergency savings, and more than half have less than $1,000. Very few have the recommended three to six months' worth of expenses in a savings or money-market account.
