By Sarah Foster
From Bankrate.com
Building up a stable cushion of cash you can rely on in emergencies seems daunting even in normal economic times. Add the steepest loss of Americans’ purchasing power in more than 40 years into the mix, and the task can seem next to impossible.
Prices have climbed on almost every consumer staple, rising 8.3 percent in August from a year ago—among levels not seen since late 1981. Everyday Americans thus have to make sacrifices with their money to make ends meet. Almost 3 in 5 (58 percent) said in a February Bankrate poll they had to cut back on spending because household items have gotten so expensive. Another 29 percent said they’ve had to dip into their savings, while 23 percent have had to take on credit card debt….