Millions of Australians are too strapped for cash to deal with a financial emergency, meaning a job loss or medical incident could land them in an instant crisis.

A new survey from Finder found that almost two in five respondents - equivalent to 7.9 million people - don't have enough money saved to cover three months of essential living costs

And one in five said they found it "very difficult" to save money.

 Nearly one in 10 don't have a three-month savings buffer but are trying to get there, while eight per cent of respondents said they didn't think a three-month emergency fund was necessary.

Finder money expert Alison Banney said millions of households were vulnerable to an unexpected event like job loss or illness.

"One sudden unexpected financial setback – like a redundancy

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