37% of Americans have less than $500 saved, and almost half can’t last a month without income. How to rebuild before the next emergency

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The survey found that as the cost of living rises, 66% of households were forced to rely on savings in the last year just to cover everyday expenses. That leaves less for emergencies.

That means millions are just one unexpected bill — whether car repair, medical expense or missed paycheck — away from a financial crisis.

Americans are losing ground

In the survey, Americans report shrinking savings. About 29% of survey respondents said they have less cash saved than a year ago, compared to just 25% who say they've managed to build their reserves.

Meanwhile, roughly 31% of households reported not setting aside any money in a typical month.

Inflation and rising living costs are the primary drivers of this trend, with 54% of Americans citing inflation as their biggest obstacle to saving, according to Bankrate (3). Consumer prices are also 26% higher than in December 2019, making it clear why Americans are spending instead of saving.

Government data backs this up, too. The personal savings rate, or the amount a household can sock away after expenses are paid, was just 4% in February, according to the Bureau of Economic Analysis (4).

The real problem isn't spending

When asked why they can't save more, Americans overwhelmingly point to one thing: Everyday costs. Over a third of respondents say essentials like groceries, housing and utilities are eating up their income, leaving little or nothing left over to save.

That data point repeats in other studies. GOBankingRates analyzed cost-of-living indexes from the Missouri Economic and Research Information Center and the Bureau of Labor Statistics to assess the average annual household total expenditures for each state and assigned each state a point value (5). A score of 100 is the national average.

While 31 states fell below 100, 29 states far exceeded that, with the top three most expensive states to live in, based on housing alone, being Hawaii, Massachusetts, and California. The least expensive state to live in, in terms of annual expenses, was Oklahoma, at $66,284.

Meanwhile, according to Fidelity, the median weekly wage for full-time American workers sat around $1,200 in 2025, around $62,000 a year (6). This indicates that the majority could not afford to support their household alone, even in the cheapest state, without falling into thousands of dollars in debt.

Now, most households don't rely on just one paycheck. Half of U.S. households have dual incomes, so families in those situations can stretch further than a single salary would allow (7).

But, even with two earners, the margin for error remains thin.

How to rebuild your savings

One of the most repeated bits of financial advice touted online centers on building an emergency fund. Gurus like Dave Ramsey, with his Baby Steps process, take it further: Build up at least three to six months' worth of living expenses to protect against emergencies, such as losing a job (8).

If your savings have taken a hit, you're not alone, and you're not stuck. Rebuilding doesn't happen overnight, but there are some structural changes to consider that could help you regain control of your funds.

Start by tracking where your money goes

Before you can rebuild your savings, it helps to get a clear picture of where your cash is flowing to.

Monarch Money's expense tracking system makes managing your finances easier. The platform seamlessly connects all your accounts in one place, giving you a clear view of where you're overspending.

It also lets you link your credit card accounts so that you can monitor your payment progress in real time and set specific goals to pay off any credit card debt faster.

For a limited time, you can get 50% off your first year with the code WISE50.

Even small adjustments, like cutting out unused subscriptions, can free up some cash to redirect toward savings. Every little bit helps.

However, if you have debt draining your savings, it might be time to consolidate your debt.

Lower your fixed costs wherever possible

Consolidating all your debts into a personal loan through Credible can make managing payments easier and help you feel more in control of your finances.

Through Credible's online marketplace, finding the right loan becomes much simpler. Credible lets you comparison-shop for the lowest interest rates with just a few clicks.

In less than three minutes, you can see all the lenders willing to help pay off your credit cards or other debts with a single personal loan.

If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to help clear a significant portion of your debt.

With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.

If you qualify, they'll negotiate with your creditors to settle your enrolled debt.

Even modest savings on interest or monthly payments can help create breathing room to rebuild your financial cushion. From there, you can start really building on your emergency fund.

Make sure your savings are actually growing

That said, not all savings accounts are created equal. Many traditional accounts offer minimal interest, meaning your money is just sitting in an account, losing value to inflation over time.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That's ten times the national deposit savings rate, according to the FDIC's March report.