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New York is among the worst cities to save for a rainy day: study

Average New Yorker would have to save for more than 43 years to build up emergency fund

Memphis earns the top spot as the best city for saving (Credit: iStock)
Memphis earns the top spot as the best city for saving (Credit: iStock)

Experts say you should squirrel away six months’ worth of expenses as a contingency for losing a job or a medical emergency. But in New York, it would take someone half a lifetime to save that much, according to a new study.

The average New Yorker would have to save for 521 months – or more than 43 years – to save up a roughly $30,000 six-month emergency fund, according to the personal finance site Bankrate.

That puts the Big Apple among the worst cities for those looking to save.

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Bankrate ranked U.S. cities by the amount of time required to save a six-month emergency fund, based on housing costs and other expenses including groceries, medical care, utilities and transportation.

The best city for saving is Memphis, where a six-month emergency fund would require 11.6 months of saving, followed by Cincinnati (12.6 months), Cleveland (12.8 months), Pittsburgh (13.1 months) and Detroit (13.3 months).

In four California cities – Los Angeles, San Diego, San Francisco and San Jose – the time required to build a six-month emergency fund is immeasurable.

Bankrate used data from ATTOM Data Solutions, the Cost of Living Index compiled by the Council for Community and Economic Research and the U.S. Census Bureau. [CNBC] – Mike Seemuth