According to study data, the national average salary in the U.S. is $63,795. Yet that number doesn’t address the potentially crucial safety net of savings, or a continual cost-of-living crisis. So, how long could the average American household survive without income?
While conducting our new study, we found that the majority of Americans are ill-prepared to miss even a single paycheck, let alone several months of work.
With a high percentage of workers living paycheck to paycheck and only a fraction able to access public safety nets like SSDI, millions are one missed working week away from economic hardship. As part of our exploration of the financial plight of Americans, we considered emergency savings data, cost-of-living figures, and Social Security Disability Insurance (SSDI) approval trends.
And we discovered just how financially vulnerable Americans really are, especially when faced with unexpected injury or illness, with a lack of savings a huge factor.
How Much Emergency Savings Do Americans Have?
Our analysis of recent emergency savings data paints a bleak financial picture for most Americans. We found that, while 46% of U.S. adults say they have enough saved to cover three months of expenses, 30% only have some emergency savings (not enough to cover three months), and 24% have no emergency savings at all.
That means over half of Americans would not be able to cover even 12 weeks of basic living costs if they lost their job, or if they suffered an injury that prevented them from working for longer than that period.
During the past 12 months, 37% of adults were forced to rely on emergency funds. Of those reliant on emergency savings, 80% withdrew money for essential expenses, including unplanned emergencies, monthly bills, and day-to-day needs like food or gas.
The amount withdrawn to cover these costs varied, with 26% withdrawing between $1,000–$2,499, 22% withdrawing between $500–$999, and 18% withdrawing less than $500. In many cases, the reason for withdrawing emergency funds was to cope with rising living costs.
Cost of Living vs. Financial Capability
A perilous financial situation has been made worse for many Americans due to a continuing cost-of-living crisis. Consider what currently (2025) represents basic living costs across the U.S. $1,154 a month rent for a 2-bedroom apartment, plus $583 a month for utilities (electric, gas, water, phone, internet). If we add average grocery costs, the combined amount exceeds $2,000 a month.
In Georgia, the situation is even more challenging, with rent at $1,545 a month (which will increase 9% year-on-year), healthcare costs of $413 a month, and a total spend (including groceries) in excess of $3,400 a month.
So, a Georgian earning minimum wage falls 14% short of being able to cover basic costs, even while working full time. A clearly untenable scenario – and often without any kind of safety net.
Why Benefits Don’t Fill the Gap
In theory, public safety nets like Social Security Disability Insurance (SSDI) or workers’ compensation should help people who can’t work due to injury.
However, our study shows these systems are often inaccessible. In 65 to 70% of cases, initial SSDI applications are denied, with 43% of denials for technical (not medical) reasons.
And even successful SSDI applications are long, drawn-out affairs – of little use in an emergency. The average processing time for an SSDI decision is now 225 days (approximately 7.5 months), while an appeal for an unsuccessful application can take well over a year to process.
Some of the reasons for benefits denials include insufficient or missing medical documentation, earnings over the monthly eligibility threshold ($1,620 as of July 2025), a failure to meet work credit requirements, application errors, and inconsistent or incomplete statements or treatment records.
During the long wait for a resolution to a benefits application, many disabled or injured workers go without any income. This means legal representation is critical when it comes to handling appeals and ultimately securing benefits – especially for Georgia residents.
Why Georgia Workers Are Especially Vulnerable
The people of Georgia face an especially challenging financial climate, as rising rent and low wages continue to create increasingly difficult conditions.
Some of the challenges Georgia residents face include rent that’s nearly $400 higher than the national average, healthcare costs that represent a growing strain on household budgets, and a disproportionate number of physically demanding jobs (which increases the risk of injury). There’s also the matter of shrinking wages, which are lower than the national average.
Without significant emergency savings or fast access to benefits, many Georgians are at high risk of falling into financial ruin after just a few weeks without a wage.
To compound the issue, Georgia currently ranks way down the list of most affordable U.S. states in 33rd place. But which states in the U.S. are the least and most affordable?
Cost of Living In The U.S.: Top Ten Most and Least Expensive States
When it comes to affordability, the data shows these ten states rank as the most cost-effective places to live in the U.S.
While the above states are top of the charts in terms of how far a dollar will currently stretch, the following ten ‘least affordable’ states are far from ideal for anyone without significant savings or a secure job that doesn’t feature the risk of a serious accident.
Ultimately, wherever you live in the U.S., if your finances are vulnerable, one unlucky accident at work could be the difference between managing and quickly heading into precarious financial territory.
The True Cost of Injury or Illness
Our findings show a clear pattern of millions of Americans living without a financial safety net. Just one injury, diagnosis, or layoff can very quickly escalate and evolve into a long-term financial crisis.
With 57% of all U.S. workers living paycheck to paycheck, SSDI and workers’ compensation claims are denied more often than they’re approved (especially without the right legal help), and the average household is equipped with less than six weeks’ financial buffer if pay stops. Times are particularly harsh.
Our study emphasizes the critical importance of putting stronger financial protections in place for injured or disabled workers, and the vital importance of appropriate legal support for those struggling to access existing benefits.
For Georgia residents suffering from a work-related injury, knowing your rights and legal options is essential. Here at Bader Law, we can help you claim what you’re due and appeal if you hit a brick wall. Get in touch with us today for more information.
