A new report by the Corporation for Enterprise Development states that nearly half of Kentuckians do not have enough money to fall back on in the event of a job loss, health crisis or other income-depleting emergency.
The corporation said Kentucky ranks 34th in the nation for financial stability.
Bluegrass financial advisor John Bryant said many people who get into a bad financial situation don't have a plan.
"When families put it on paper and say what are my needs and what are my wants? That gives them a little more flexibility of what they decide to spend on, and they know where the money goes," said Bryant.
Bryant recommends people have at least three months of expenses saved, but if you own your own business, you should be financially prepared for at least six months.