Maybe it’s our high debt loads, or lessons learned in a sluggish economy, but it seems people are getting the message about saving for a rainy day.
A new survey conducted for CIBC has found that 60 per cent of people in this province do have savings set aside for emergencies, like for when your car breaks down or your roof springs a leak.
The BC number is five points better than the national average.
People in the 45 to 64 age group are the most likely to report that they have an emergency fund.
“Once you’ve experienced the financial challenges that come with a leaky roof or an unexpected car repair, the value of having some cash set aside for emergencies becomes clear,” says Christina Kramer, Executive Vice President, Retail Distribution and Channel Strategy, CIBC.
“Our poll shows an opportunity for more Canadians to start building up an emergency fund, to help get them through an unexpected expense and avoid dipping into long term savings to pay for a short term problem.”
Emergency savings should be separate from your other savings accounts.
CIBC says it’s important to distinguish between emergency savings, retirement savings and other savings goals.
Your emergency savings account should be a separate account that you contribute to regularly, and while accessible, isn’t touched for anything except emergencies.
The rule of thumb is to have three months worth of income saved for emergencies.
Source, Image: News 1130, Design.Shuffle