Only 2K?
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 couldn’t come up with that much cash within 30 days.
That’s 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 car’s transmission.
Most respondents said they’d 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 can’t 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 wouldn’t 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 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?
Only 2K?
Let’s stay focused here. LOL
And that is the ticket brother.
Liquidity.
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).
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