People should place emergencies above retirement as the most important financial savings goal, a Consumer Federation of America-led campaign advocated Friday.
“If you only have one savings goal, make it emergency savings. It can rescue you in a bind or jumpstart a goal,” the campaign told consumers in a Twitter chat to kick off America Saves Week, February 27 to March 4.
An emergency fund is often the difference between staying afloat and sinking deeper into debt, noted CFA’s America Saves coalition, which includes the Investment Company Institute, JPMorgan Chase and Wells Fargo.
To make sure the money is available for emergencies, America Saves said consumers should make the funds hard to reach so they are not tempted to spend it on anything other than crises such health matters or repairs for a car needed to get to work.
The group called retirement savings an important longer-term savings objective.
Emergency savings help keep people in the black while retirement savings will sustain them later in life, America Saves said.