SPRINGFIELD, Mass. (WWLP) - No one is ever really emotionally prepared to lose their job or suffer an illness, but are you financially prepared? Nearly 3 in 5 Massachusetts people don't have emergency savings.
They're defined as 'liquid asset poor.' The nearly 3 in 5 Massachusetts people who don't have enough savings to cover three months' expenses in case of an emergency.
"I have a mother that I take care of who lives in a nursing home. I have myself and my dog. I live in a government housing complex. It's hard to save," said Tina Felton of Springfield.
Without savings these families are less likely to plan for their own or their children's futures: like buying a house, putting aside money for college or saving for retirement.
"It's just too easy for people to put stuff on credit cards and then they create all sorts of debt for themselves. Then they don't have money to save because they're trying to pay down their credit cards," said Dave Griffin of West Springfield.
It might not feel fun to make a habit of spending less, to save more. But it's a whole lot easier when you have something to fall back on if a surprise expense pops up.
"We learned a lesson a long time ago and got over it and got passed it. We took a real good look at what we're doing. Just trying to stay below the curve instead of on the line," said Michael Cross of Springfield.
22News is working for you with some tips to start saving. First make an overview of where your money is going, and if it really needs to go there.
"That's probably the best time to budget when you don't have any money because you're forced in that situation to say I've got to make some choices. A cable bill can be 150 dollars a month, you have to say do I really need that?" said Thom Fox, a personal finance expert at Cambridge Credit Counseling.
Other cost-cutting habits include making coffee at home in the morning, buying non-perishables in bulk, and choosing sale items over full-priced ones.
The report was released today by the Corporation for Enterprise Development. They also gave Massachusetts an 'F' in Housing and Homeownership, as the state ranks 48th in affordability of homes.