Survey finds over half of Americans can't afford a $1,000 emergency

[mystery-ak]

Survey finds over half of Americans can't afford a $1,000 emergency

Only about 4 in 10 Americans have enough savings to cover an unplanned expense of $1,000, with more than half having to find other means to pay for an unexpected car repair or emergency room visit.
By
Shirin Ali | Jan. 19, 2022


Story at a glance

    Bankrate, a personal finance company, conducted a survey in January to assess Americans’ ability to pay for surprises expenses.
    The results found only 44 percent of U.S. adults had enough money saved to cover a $1,000, unplanned expense.
    The current state of inflation was cited as one of the reasons preventing people from setting aside money for savings.

Less than fifty percent of Americans could afford a last-minute, $1,000 emergency, like an unexpected car repair or visit to the emergency room, shedding light on just how hard inflation and other factors are hitting Americans’ finances.

Bankrate, a personal finance company, released the results of a survey that polled 1,004 U.S. adults in January and found that only 44 percent had enough money saved to cover an unplanned expense, while also reflecting the highest percentage capable of covering such an expense in the last eight years of polling.   

Though an improvement, Greg McBride, chief financial analyst for Bankrate, said it still indicates a majority of Americans cannot afford a potential emergency.

“The reliance on borrowing is still high, with more than one-third of households having to turn to a credit card, personal loan, or family and friends in the face of unplanned expenses,” said McBride.

more
https://thehill.com/changing-america/respect/poverty/590453-survey-finds-over-half-of-americans-cant-afford-a-1000

[libertybele]

If this stat is true, that is quite alarming. Over half is a huge amount of people who would be facing hardship. That's terrible.

[Free Vulcan]

Most of the generations that are alive now spend money like water through a sieve, and thinking the go-go casino was never going to come to a halt.

And now, here we are.

[roamer_1]

Well DUH. After three years of restrictions and unemployment, shutdowns and shipping problems... No wonder.

I just had a bit of an emergency. Fixing my water was right at a grand. I can cover... and it didn't crap me out. but it took a chunk. I felt it. My emergency funds felt it. I am alright, but ten benjamins made my roll noticeably thinner.

[sneakypete]

I think the people that did this survey have no concept of how little a thousand dollars is these days.

It is practically pocket change if you have the normal housepayment/rent bills,car payment,utility bills,dependent children,etc,etc,etc.

[Restored]

It's not surprising in a culture where people base every large purchase on the size of payments.

I'm working towards my 2nd million$ and you would be surprised how much we live paycheck to paycheck. No mortgage or car payments either. Much of it is work on the house or new furnishings. For many people, all their wealth is tied up in money they can't reach (IRA's, 401ks, etc.). Our banker moved us out of pre-tax 403b's and into Roth's because you can access that money more easily.

If you ask someone who doesn't have money "What would you do if you had a million dollars?", they would probably tell you of all the ways they would use it. But most people who have a million dollars try to preserve it. In some ways, it becomes a Golden Prison. I am constantly telling my wife "I don't care how much it costs. You have the money". A friend recommended "Take out 1% every year, put it in a savings account and force yourself to use it during that year".

In 1900 or so, Bramwell WV had the highest # of millionaires per capita in the US. The houses in town still reflect that. After the market crashed, most of them committed suicide.

[IsailedawayfromFR]

It's not surprising in a culture where people base every large purchase on the size of payments.

I'm working towards my 2nd million$ and you would be surprised how much we live paycheck to paycheck. No mortgage or car payments either. Much of it is work on the house or new furnishings. For many people, all their wealth is tied up in money they can't reach (IRA's, 401ks, etc.). Our banker moved us out of pre-tax 403b's and into Roth's because you can access that money more easily.

If you ask someone who doesn't have money "What would you do if you had a million dollars?", they would probably tell you of all the ways they would use it. But most people who have a million dollars try to preserve it. In some ways, it becomes a Golden Prison. I am constantly telling my wife "I don't care how much it costs. You have the money". A friend recommended "Take out 1% every year, put it in a savings account and force yourself to use it during that year".

In 1900 or so, Bramwell WV had the highest # of millionaires per capita in the US. The houses in town still reflect that. After the market crashed, most of them committed suicide.

You are writing like a sane person with the experience of living in tough times.

If more people in this country behaved that way, we would have not debt and would be in the business of lending money to China instead of taking their cash.

[catfish1957]

This is more terrifying news than anyone realizes.  The next great big financial hit is going to create 10's of millions financial zombies.  Hunger and desperation does scary things to humans. 

BTW, last I looked DJIA was down almost 800 points this morning.

[Cyber Liberty]

This was me for must of my adult life.  About 25 years ago my earning power had increased to where I always have a couple thou laying around to cover costs.  The killer for me was the bill for a new battery for my hybrid car, but we recovered from that pretty swiftly.

[roamer_1]

This was me for must of my adult life.  About 25 years ago my earning power had increased to where I always have a couple thou laying around to cover costs.  The killer for me was the bill for a new battery for my hybrid car, but we recovered from that pretty swiftly.

I like having two grand in my pocket... seed corn...
I feel pretty good with 10 grand in the sock.

I ain't quite there in either sense, but I am closer to it than not.

[Fishrrman]

Cyber wrote:
"The killer for me was the bill for a new battery for my hybrid car..."

OK, I have to ask, if you don't mind telling.
What was the car, and what was the bill...?

[libertybele]

I think the people that did this survey have no concept of how little a thousand dollars is these days.

It is practically pocket change if you have the normal housepayment/rent bills,car payment,utility bills,dependent children,etc,etc,etc.

I agree @sneakypete a thousand dollars isn't much these days.  I don't know how families with a couple of kids are making it with the high cost of rent/mortgage, car payments, insurance, gas and the astronomical cost of food.  How many can afford to have an extra grand on hand?  It is scary that so many don't and it has to be tough trying to make ends meet these days.

[Cyber Liberty]

Cyber wrote:
"The killer for me was the bill for a new battery for my hybrid car..."

OK, I have to ask, if you don't mind telling.
What was the car, and what was the bill...?

2019 Ford Escape, and the bill was about $13,000.  The old battery died at 10 years and 2 months, and the warranty was for 10 years.