HUNTSVILLE, Ala. - A recent study by gobanking rates.com finds 25 percent of Alabamians have nothing in their savings accounts, the fourth lowest percentage in the country.
Vern Gohanna, CEO of TaxCorp, says he's not surprised by the finding.
"A lot of people I work with have no savings at all," said Gohanna. "Typically people think they need to have a big job and lots of extra discretionary income in order to have some savings. That's not necessarily true."
Gohanna says everybody can save something, no matter how low your income.
"If you make $600 a paycheck, save $30 of it, set it aside, have a strict threshold as to when you're going to go into that money," recommends Gohanna.
Something else that people may not think about affecting their bottom line is a natural disaster, like we saw here in the Tennessee Valley in April of 2011, but that proved just how important having savings is.
"The whole city was shut down for a week. Since people weren't working it really hurt those people who were dependent on hourly wages, living paycheck to paycheck because they had a large gap in their income," said Gohanna.
Gohanna says it's best to have six months of income saved up in case you're laid off, your business closes or you become ill or any other unexpected need for extra money arises.