- Saving money in an emergency fund is crucial, whether it's to pay for unexpected car repairs or health care costs.
- However, according to a Bankrate.com survey, 23% of Americans have no emergency savings.
- Below, a certified financial planner explains how to build an emergency fund - even if you're currently at $0.
You may know that you should have an emergency fund, but the question is: Do you? If you don't, you're not alone. According to a Bankrate.com survey of 1,000 adults conducted in June, 55 million people - about 23% of Americans - have nothing in an emergency fund, CNBC reported.
However, when it comes to those who do have an emergency fund, only 29% have at least six months' worth of expenses saved, according to the survey. Just 18% have three to five months saved, and 22% have less than three months saved. Overall, that's not a lot of people with money for emergencies at hand.
"There's no telling when you'll need to fix a leaky roof or cover an unexpected expense," Bankrate senior reporter Amanda Dixon told Business Insider in an email. "That's why having a rainy day fund is critical."
She recommended having enough emergency savings to cover six months' worth of expenses - and suggests cutting back on financial vices to meet that goal.
Here, a certified financial planner (CFP) takes you step-by-step to help you build an emergency fund, no matter how much - or how little - is in it now, even if it's currently at $0.