Most adults say cost of living blocks savings

Cost of living remains the main barrier to financial security for nearly half of adults, a new survey shows. The report from ConsumerAffairs indicates that high daily expenses prevent many people from building a financial cushion.

The survey polled 1,000 adults between the ages of 18 and 64. Dayna Edens, the company's public relations manager, noted that the definition of financial security has shifted. For more than half of the participants, it means simply avoiding the cycle of living paycheck to paycheck. Edens stated that making ends meet is now the standard goal for stability.

Savings levels are low among the group. Four in ten respondents reported having less than $1,000 saved, excluding retirement accounts and home equity. Edens explained that this amount covers immediate needs like an emergency room visit or car repairs. She highlighted that 19% of adults have no money set aside at all.

Few respondents can pinpoint the exact amount needed for peace of mind. Only 20% know the specific dollar figure that would make them feel financially secure. When asked what change would help most, participants did not point to debt payoff or home ownership. Instead, they cited covering basic expenses with something left over as the key factor.

Financial experts in the report suggest building an emergency fund and reducing high-interest debt. Edens advised adults to be realistic about their current situations. She noted that high costs are a widespread issue rather than a personal failure. Her advice is to focus on staying afloat with the resources available.

The survey results provide a snapshot of current economic pressures. The data shows a clear link between high living costs and low savings. The findings are based on self-reported data from the 1,000 adults surveyed.