Tag "emergency savings fund"
The untrained eye may gauge the high disposable income in a population and surmise that the economy is doing just fine. That is before a study such as one conducted by the Fed Reserve in 2014 on Household Incomes and Decision making shatters that perception.
You have to consider the different factors in budgeting, such as the number of people in the household, the prices of commodities, the utility bills, and more. Hence, you ignore to part with some of your earnings for an emergency savings fund.