Skip to comments.Could You Raise $2,000 in a Pinch?
Posted on 07/28/2013 9:04:15 AM PDT by Kip Russell
Or would you feel pinched?
If your roof sprung a leak or your dentist said you needed a crown, would you be able to write a check to cover such an emergency?
Either might cost $2,000, but about half of Americans say they couldnt come up with that much cash within 30 days.
Thats according to a paper published by the National Bureau of Economic Research, using data from the 2009 TNS Global Economic Crisis survey aimed at showing the extent of financial weakness in the U.S. and other nations.
The survey asked, If you were to face a $2,000 unexpected expense in the next month, how would you get the funds you need? As reported in the Wall Street Journal, only 25% of American respondents said they could gather that much money in a month, while another 25% said they were probably able and 28% said they were certainly unable to do so.
The $2,000 figure reflects the order of magnitude of the cost of an unanticipated major car repair, a large copayment on a medical expense, legal expenses or a home repair, the authors wrote. Specifically, they chose $2,000 as the probable cost of replacing your cars transmission.
Most respondents said theyd cope by dipping into savings, borrowing from family and friends, using credit cards, seeking payday loans, pawning their belongings or selling some possessions. Taken together with those who would sell their homes, the authors said, nearly half of all respondents are living very close to the financial edge.
If half of Americans cant come up with two grand in an emergency, imagine their reaction to our advice that you maintain as much as two years worth of spending in cash reserves. For most Americans, $2,000 wouldnt even cover costs for much more than a month.
To find out how much you should have in your emergency fund, talk with a financial planner.
I bet you could :)
When half of Americans are on the Government dole, that is to be expected.
I can, but I know a whole lot of people who would be hard pressed to come up with half of that.
Exactly so. They're supported by The State, so why should they have savings? If something goes wrong, it's the responsibility of someone else to pay for it.
Not a problem here either.My in-laws however........
Can you front me a $20 spot?
I has $2000 ,but don’t tell the wife
Bingo! The government teaches dependence. Why should an Obama drone save? As far as the article comment, that people should have as much as two years expenses saved, few could meet that standard.
Most emergency funds are savings, aren't they? Or does he mean retirement savings?
75% of Americans need to read a Dave Ramsey book.
Was this always the case? Could Americans in 1955 raise a proportional amount? Or did we not even ask the question, because it wasn’t the public’ business to know?
That's the whole reason you have savings in the first place. Why is this a "coping" mechanism? It's the raison d' etre for saving money in the first place. It's stupid to say people can't raise $2,000 unless they cope by dipping into savings.
If you're able to save money, be sure to save for different needs: long-term (kids' college, retirement), intermediate-term (house down payment, car down payment), and short-term (roof leaks, crowns on your teeth, back-to-school expenses, layoffs from work).
Most respondents said theyd cope by dipping into savings,...ANNNND why do you have savings, if not for emergencies? I dip into mine when I want to go deep sea fishing. This January I will dip into my IRA to go deep sea fishing in Hawaii. What is the problem? If I wait longer, I might have a heart attack, stroke or lung cancer. Why not spend it now, while I’m able? Sheesh these people are stupid.
Dave Ramsey rocks!
There is not much incentive to save money these days, with interest rates so low. But people neglect to recognize how expensive it can be to borrow money.
The first thing any responsible person should do, regardless of how little money they may be making, is to save some money for emergencies.
Right after paying rent and utilities, the next highest priority should be putting some money aside, THEN figure out how you live on what’s left and what are your real NECESSITIES — and figure out if there is any extra work you can do for a little extra money.
I dipped into my savings this year to go to Iceland, and in just 2 weeks I'm taking my father on a safari in South Africa. I save, but I'm not a fanatic about it.
That’s why I bought gold and silver so many moons ago. It’s not immediately liquid, but it’s liquid enough.
Those commercials about retirement savings. Where everyone is dancing to Tequila, sky diving and surfing LOL
Have your fun now, but save some money to pay for some one to wipe your ass.
Just goes and get some Obama money! From his stash!
Obama stole 2k from me with the payroll tax!
I should have done the same before they went through the roof. I have some gold and silver, but I wish I had more.
There is a young guy with wife and child at my place of employment, I’ve been trying to quietly coach him into a more stable financial existence. I’ve hit a brick wall with overdraft protection on a checking account. He views it as an emergency loan and I can’t get him off it. This guy is one of the ones who is actuallytrying to better himself, an increasing rarity. The stupid runs deep regarding financial matters among the young, and it’s pretty bad even among those close to my age. Not that bad, but pretty bad.
but I’m not a fanatic about it...I used to be but I visited my Dad’s grave last month and saw he died ten years from my age. I truly sat and thought “I gots no kids, no family, I don’t want the government to grab what I DO have so why am I being monetarily conservative?” Ya know, I’m spending the crap I’ve got now and ...who gives a shiite?
Let’s stay focused here. LOL
And that is the ticket brother.
My parents are still around, but I'm in a similar situation. Once they're gone (a long time from now, one hopes), I'll be sitting on a pretty good nest egg. Without any kids, there's no one to which to leave it...so I'll be taking a lot of expensive vacations starting in a few years when I retire. Why leave it for the State to confiscate?
That's the plan, anyway.
That’s what the VA and other welfare programs are for. F’em. I paid my way, and seriously if I can get to my .40, I don’t think I give a damn.
That part confused me too. I don’t make $2000 a month, so by definition I’d be dipping into savings of one kind or another.
I also marvel at the number of parents who bail out their adult children when they need a $2000 car transmission repair.
Hardship, hunger and fear for your survival are great motivators. Unfortunately, most Americans have never experienced any of them. My parent's generation was hardened by the Great Depression and WW 2. My generation is soft, weak and undisciplined. Many of our children are unprepared for what lies ahead.
God bless you son. I once thought I’d give it to United Way (now it would go to the Race Pimps), the Church (Catholics who educated me would give it to Brazil or Argentina or some other African shithole) or the Protestants who would espouse the queers. Nope, spend it.
Yeah, there’s people I work with who complain that they don’t get paid enough to cover their own rent, and in the next breath they brag about their bar-hopping and fancy pedicures.
I’m trying to pay down my medical debts and build a house, and somehow I do so on less than they complain about.
I just do not understand what the whining is about.
I figure when I get old and die I will die.
I never expected Nubile young Nymphs to feed me grapes while I lay on silken sheets at age 75.
Do that stuff when you are 25.
Try to explain the concept of “pay yourself first” to these people and they will look at you like your from another world.
Financial ignorance is rampant in this country. (and is a big part of our problems).
I'm a lot like my Dad.I've always lived well below my means and,as a result,could easily handle emergency dental work,roof repair or car breakdown.
I never expected Nubile young Nymphs to feed me grapes while I lay on silken sheets ...YOU DON’T???? I’m shocked!
God bless us cheap bastards.
No one ever got rich writing a lot of checks.
I don’t know how you rich people sleep at night!
“On top of a large pile of money with many beautiful women” LOL
Could I pinch $2000.00?
Those listings are the extent of organizations to which you would make donations? You sure have a limited imagination.
Agreed. And his Financial Peace University program should be mandatory for college students.
It’s worse than it seems, because many people live a month ahead on their credit cards. If something goes wrong with their cards, they are instantly, say -$2000. So to raise $2000, they would have to raise $4000.