Most Americans can't afford a $1,000 emergency expense

Proletariat.

Proletariat.

Active member
NEW YORK (CNNMoney) -- When the unexpected strikes, most Americans aren't prepared to pay for it.

A majority, or 64%, of Americans don't have enough cash on hand to handle a $1,000 emergency expense, according to a survey by the National Foundation for Credit Counseling, or NFCC, released on Wednesday.

Only 36% said they would tap theirrainy day funds for an emergency. The rest of the 2,700 people polled said that they would have to go to other extremes to cover an unexpected expense, such as borrowing money or taking out a cash advance on a credit card.

"It's alarming," said Gail Cunningham, a spokeswoman for the Washington, DC-based non-profit. "For consumers who live paycheck to paycheck -- having spent tomorrow's money -- an unplanned expense can truly put them in financial distress," she noted.

That's the case for Allyson Curtis, 35. "I think about it every day," she said.

Curtis was unemployed for only three months last year, but in that time she accumulated $5,000 in credit card debt that she's now struggling to pay down. In the case of an emergency, Curtis said she would likely postpone other payments and pile on additional debt.

She is already putting off $450 in dental work and a car inspection due to a crack in her windshield, which will cost $300 to replace, she said.

Budgeting for an emergency fund

Many respondents, 17%, said they would borrow money from friends or family. Another 17% said they would neglect other financial obligations -- like a credit card bill or mortgage payment -- in order to free up some funds.

Alternatively, 12% of the respondents said they would have to sell or pawn some assets to come up with $1,000 and 9% said they would need to take out a loan. Another 9% said they would get a cash advance from a credit card, according to the NFCC.

Cunningham finds that particularly troubling. Neglecting other debt obligations -- or worse piling on more debt -- "really exacerbates the problem," she said.

An earlier study by the same organization found that 30% of Americans have zero dollars in non-retirement savings. A separate study by the National Bureau of Economic Research found that 50% of Americans would struggle to come up with $2,000 in a pinch
 
have you ever heard of the concept "living paycheck to paycheck?" shut the fuck up you spoiled bitch. You know, real life can be expensive as fuck and a real stress on someone living alone, or supporting a family while their only making minimum wage.
And as shocking as this article should be, it's kinda expected :/

 
It really is a shame that this "greatest country in the world" has a large percentage of citizens who can't afford healthcare. Unfortunately, every time a progressive plan comes out, that dreaded "s" word gets thrown around and idiots vote against their own health. Some things simply need to be run by the government. Get over it.
 
One gloating 'socialist', comin' right up!

But really now. You are not a very smart tortoise. I'm going to make a hastely assumption that you don't even know what socialism is and that you have never been in a situation where you have absolutely no ability to save money, as the expenses of living and health take up more than you earn. Granted, we don't know about these examples' other than for a few sentences - are they single, married, with children, who knows.

In these situations - unfortunately - people turn to credit comapnies to support their lifestyle, their families and other instances, which in my opinion is 100% a slippery slope. I'm never going to get a credit card if at all possible.
 
i understand this but 64% of America, the number the article mentioned, doesn't live paycheck to paycheck
 
glutoness fucking people.

there are very few neccesities in this world. Live within your means and shit will work out for you. Not everyone can live in a nice 2 story house and have a flatscreen and a newer car. dont buy lunch...make it. dont ever eat out. Dont buy things on credit unless they are absolute neccesities.

Many, many of the people that i see with debt issues lived far out of their means with the expectation that future earnings would make it possible. Given, i was raised a lil bit weird, but debt is not acceptable, and credit should only be used for a house payment and to keep your credit score high. You need to pay off your debt before you invest in any kind of luxuries.

Live within your means!
 
After a quick google search, 77% was the most common number being thrown around. As you might imagine, results varied greatly, but 60 to 77 were the most common percentages. It also depends on where these samples are being taken from. I see almost no way that there are that many Americans living paycheck to paycheck, but what do I know?
 
It's atrocious how lightly people take credit/debt. As a rule I refuse to take out a loan or spend money I don't have.
 
It's hard trying to be nice.... GAH! You see the world through fluff-tinted glasses. You are young and immature, but you will grow up and see what the world is like soon enough.
 
Yup. Because the entire world can afford college RIGHT? And there are NEVER circumstances that can make it impossible for someone to finish high school. You are correct.
 
lol, what kind of idiot would try to raise a family on minimum wage? Probably someone unfit to care for a child.... having a kid you can't afford should be a crime.
 
lol, what kind of idiot assumes that there couldn't be other circumstances behind a situation like that? Say, you start a family being alright, but then recession hits, you get sacked, can't get a decent job and have to make due... airing ignorant opinions like yours should be a crime.
 
These are some of the most ignorant responses i've read in NSG, I really hope you guys enjoy how fucking spoiled you are. Living paycheck to paycheck is a reality and it's scary for a lot of people, yeah you can budget and all that but if you get hurt and can't work, what the fuck is your family gonna do. and we don't need the government telling us who can and can not reproduce, just because your poor doesn't mean you should be stripped of the basic right to a family, not everything's about money in this fucking world you don't need to have a bunch of shit to make your kid happy.
 
a responsible person would have an emergency fund with at least 6-12 months of living expenses, that's what this thread is about. If you can't maintain a savings account with enough to float you in case of shit like losing a job or an unexpected auto repair, it's a negligent and dangerous situation to put kids in. "Fingers crossed daddy keeps his union job or we're all out on the street!"
 
i agree 100%. I also don't think the government should force someone elses actions (living beyond their means) to become my burden. Shit is gonna happen in everyone's life, plan for it.
 
What the shiiiiiiit are you smoking?! Six to twelve months?

That's absurd. What do you do for a living these days, Gemini man?
 
what's absurd to you is personal responsibility. Google "emergency fund" see what you come up with.
 
The only emergency fund I need is my one bank account - I know how to save and handle money. There is nothing in this world that would lead me to have the need for even three months of extra living expenses JIC, unless I'm planning on going abroad for a longer time (which I am).

My personal responsibility comes from paying taxes, and if all goes to shit anyway, I will be able to recooperate with the help of benefits.
 
but 99.6% of americans have a refrigerator and 96.7% own a microwave.

You know why they don't have an emergency fund? because they spend it on stupid shit that they don't need.. I'm not really too surprised about this
 
Markus, that was the most ignorant statement i've ever read on here, congratulations you fuck.

anyways, this is really sad to read, but very true. I couldn't cover a $1000 expense myself, but luckily I still live at home and have parents who are better savers than I am
 
lots of ignorance in this thread due to immaturity. unfortunately getting a college education and a job sure as hell doesn't just make it easy to pay bills and support yourself.
 
hahahahahahahahahaha! Hi! Welcome to Earth. What's life like on the planet you're from.

12 months of living expenses equate to roughly $50,000 between our student loan payments, mortgage payment, car insurance, food, etc. I can tell you for certain that being 4 years out of grad school & my girl having just graduated grad school 6 months ago, we sure as hell don't have $50k sitting in our rainy day fund. In fact, I don't know anyone our age that has that kind of money "just sitting there" in case of an emergency. If we did, a good chunk of that would go to pay down our mortgage so we weren't accruing additional interest.

I'm guessing that you don't live on your own and don't have student loans, mortgage, etc. If you did, you'd obviously realize how ludicrous that statement was. Get real, man.
 
All I would like to say is I'd like this thread to re-appear in 5-10 years and I'd absolutely love to hear the revised responses from the middle school - high school crowd.
I remember being young and naive and thinking that all it took to get yourself out of a rut (homelessness or associations with gangs for example) is some motivation and a job, but unfortunately that is NOT how it works.
 
a reasonable person wouldnt have money to last a year, they would pay for healthcare instead of protecting themselves against terrorists or some bullshit like that. You guys are always living in your own created fear. Jesus christ your delusional. You think its vital to save up for emergencies like earthquakes, invasions and terror. But you all bitch because you dont want to put a penny in a health care system which you will eventualy need.
 
i forget how old the median NS age is most of the time, but threads like this bring me back to earth and i remember.
i just turned 24 a few days ago and the HS generation has a lot that they will learn over the next 5-10 years. not to scare them, getting older is awesome and good shit comes from being out of school, but it's not all sunshine and rainbows like it is while mommy and daddy are hooking you up still.
 
sell your car for a beater, sell your house, move into the cheapest 1 room apartment you can, and eat like a ski bum. you dont need 50k to do that...you need about $15k. you are telling me that neither of you could find a minimum wage job?

Paying off he student loans is a completely different story.

The mojority of the people with the severe money issues are in that situation because they tried to live above their means. Being fresh into the real world(1-2 years) is really the only excuse for not having a sizable ($5000 or more) rainy day fund...outside of medical bills. But most people who are having the money issues, spent way too much when things were going well because tehy assumed things would always be good and now, because of bad luck, tehy are shit out of luck.

The real world is harsh, but people should realize that just because you have excess money now to spend, doesnt mean you should spend it, because shiot can go downhill quickly and you are going to want that safety net.

 
hahahaha! i drive a 14 year old truck. that's about as close to a beater as I can get. sell my house and get an apartment? what, so I can piss away $1,000/mo. in rent and not build any equity in an invenstment? Greeeaaat advice there, bud. I'll just save up my money after I pay rent until I can afford to pay cash for a house. because that's how the world works, right? and as for minimum wage jobs - no, we can't find minimum wage jobs. i'm stuck working as a measly accountant for a fortune 500 company and she's only a doctor. but maybe we'll pick up night shifts at the local 7-11.

do we fall in to the class of those who can't afford a $1,000 emergency expense? absolutely not. do we have a rainy day fund capable of sustaining a full year's worth of living expenses like that kid was talking about? fuck no. and no one our age does. but thanks for the finance lesson. my point was that most of the kids chiming in in this thread don't know jack shit about living in the real world. it's ok though, i didn't either when I was still partially living off of mommy & daddy's dime.

 
Where are you at? $1k a month for rent is about twice what you'd need for a decent place (assuming you mean $1k is how much each of you pays). My place right now is super nice and its $750 total with utilities payed, meaning I pay about $375/mo.
 
it's all relative to where you live man....think before you post.
$1,000/month would barely get you a studio apartment in a half-decent area of NYC or most metropolitan areas of even college towns for that matter.

people posting in this thread honestly need to think before they post. so many people have said such stupid shit. (not insulting you Varisty, but many other posters are just plain ignorant or too young to have a clue)
 
Haha I am fully aware of this, which is why I asked "where are you at?"

In financial turmoil, couldn't a person theoretically pack up and move to somewhere with cheap housing? Yeah it sucks but you won't be paying $1k/mo for a shithole studio apartment.
 
good point, you def did.

and yeah you'd hope so...although some people sign 1 year or 6 month leases. but some are month to month so i would just pray that somebody facing a shitstorm of financial trouble was one of the latter
 
like i said, paying student loans is something entirely different and the exception in this case.

if you suddenly found yourself out of work, and not able to find work, what would you do to make ends meet? thats what i was saying. you would move into a nasty 1 room apartment for $300/month, take public transportation to your minimum wage job, and eat sparingly. unfortunatly many people wouldnt do this. they would try and keep the same standard of living, and rather pile on debt than live within their current means.

when your financial situation changes, your spending situation needs to change as well, or you put yourself at risk.

for claiming to be rather intelligent, your reading comprehension sucks.
 
haha 6 months out of school, ok so 18 year olds (ya I know shes probably 20 something but basically at the same position as someone who hasn't started making any money) probably arn't gonna have much saved up yet that's to be expected oh also new born babies get a pass.... It's not crazy for two people, one being 4 YEARS out of grad school to have 50k together, (really your lifestyle cost is that rediciously high because you put it there.) Seeing as how 50k in savings in absurd to you I'm very interested to know how you got a mortgage on anything more than a small condo... you probably didn't put 20% down did you? But guess what it, really doesn't matter if you don't have an emergency fund. If you lose your income you lay back soak up all the benefits and watch as they foreclose on your house. I mean even the poorest have it pretty nice in this country, but you'd be a shitty person to bring a kid into a risky situation.
 
You have no clue, kid. 50k in living expenses for 2 people for a year is not an insane amount of money. And if you think you'll have 50k saved up within a few years of finishing school, you either have a wealthy family and zero student loans, or an unrealistic expectation of what life after college is like. You're in for a rude awakening.
 
You must log in or register to reply here.
Back
Top