SAN DIEGO COUNTY, Calif. — Californians, how much money do you have saved in your bank account, do you think it's enough to get you by until you land your next job?
If the answer is no and you are still planning to stay in California then it's time to start saving that extra change and become more frugal with spending.
The reason financial advisors are warning consumers to save is that California is number two in the United States for going broke while living on savings alone, according to a recent study from ConsumerAffairs, a company not affiliated with any government organization.
The study found most Americans have enough savings to last them just two months.
“We had a pretty high savings rate during covid-19 what happened was when all the stimulus checks came in, the savings rate came really high, and now what’s happening is really that's starting to dwindle or be non-existent quite honestly,” said San Diego Financial Advisor David Reyes.
He adds that part of it is because of disparities in living costs, there’s also a generational divide and an alarming low savings rate from retirees.
“The lack of savings in general for retirees, I mean the average retiree has $100,000 dollars in savings,” said Reyes.
Which brings up the question of, what does that mean for struggling families in San Diego?
“To start a family here, it’s almost impossible,” said Reyes.
The survey also says depending on where you live you could have even less time. To put it into perspective, a San Diego County resident with $9,647— the average amount of money Americans have in savings— would quickly see their bank account deplete in less than two months because of skyrocketing rent, gas, and utilities, and food.
Compared to the state of Wyoming where you can survive on savings for almost 109.7 days.
“I mean it's a problem, they have no state income tax. you know our state income tax is up to 13.3%. They have no corporate income tax, we do. Their property tax is half what California is. their gas price is 30% less,” said Reyes.
To break it down even further, the average rent in San Diego is $2,916, if you pay two months of rent with the average savings you are already down to $3,000.
“At a minute that you can’t afford a house, just maximize your savings, just put as much away as possible,” said Reyes.
If you're interested in seeing how your savings would hold up against your expenses in the event of income loss, go to this link to help calculate how long your savings will last.
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