Skip to comments.Nearly Half Of American Families Live On The Edge Of Financial Ruin
Posted on 02/04/2013 1:37:40 PM PST by blam
Nearly Half Of American Families Live On The Edge Of Financial Ruin
February 4, 2013, 1:19 PM
In the past few years, Americans have learned a thing or two about how quickly disaster can strike.
And with each Hurricane Sandy, housing crisis, and stock market crash that rocks our world, we're faced with the realization that many of us simply aren't prepared for the worst.
A sobering new report by the Corporation for Enterprise Development shows nearly half of U.S. households (132.1 million people) don't have enough savings to weather emergencies, or finance long-term needs like college tuition, health care and housing.
According to the Assets & Opportunity Scorecard, these people wouldn't last three months if their income was suddenly depleted. More than 30 percent don't even have a savings account, and another 8 percent don't bank at all.
We're not just talking about people who living people the poverty line, either. Plenty of the middle class have joined the ranks of the "working poor," struggling right alongside families scraping by on food stamps and other forms of public assistance.
More than one-quarter of households earning $55,465-$90,000 annually have less than three months of savings.
And another quarter of households are considered net worth asset poor, "meaning that the few assets they have, such as a savings account or durable assets like a home, business or car, are overwhelmed by their debts," the study says.
Stuck on the wheel
One of the prolonging reasons consumers have consistently struggled to make ends meet has more to do with larger economic issues than whether or not they can balance a checkbook.
Per the report, household median net worth declined by over $27,000 from its peak in 2006 to $68,948 in 2010, and at the same time
(Excerpt) Read more at businessinsider.com ...
Why only half?
If you don’t have overseas bank accounts, like a Limbaugh or Levin might, and the dollar pulls a Zimbabwe or 1920’s Germany, then you are wiped out completely. Your wealth, whether you had a little or a lot... POOF! Instant Equality!!
Obviously, we need a govermnent program to fix this problem.
If they did, Obama would classify them as "rich" and take it away from them anyway.
All money rightfully belongs to government.
I bet they have lot's of nice toys though.
“Keeping up with the Jones” is pretty expensive these days.
And which imbecile do we have to thank for this?
Not the moron in chief of course but the millions who went brain-dead and voted for Klownie the Kenyan.
Most people spend what they earn. I see it every day. Whether you earn $1,000 per month or $10,000.
At the end of the month... they’re broke.
On the other hand, I’ve seen families do quite well on “minimum wage”.
Its all about priorities.
From the article: “We’re not just talking about people who living people the poverty line, either.”
What do you suppose this means? Does no one edit or proofread any longer?
Most of the people (where I know the situation) have more non-mortgage debt than savings. People tend to treat their debt like savings and savings like debt. In their world, Debt is for buying things and savings are for emergencies. It is supposed to be the other way around.
Neither of my siblings have a dime in savings. I saw the damage my parents caused by giving them money so that idea is right out.
Spend more time making money and less time spending money.
We plowed all of our money into
paying our home off and then hubby lost his job.
Personal finance success has never been about what you make. It’s what you keep that counts.
The list, Ping
Let me know if you would like to be on or off the ping list
Obama’s ruinous Marxist economic policies at work.
Or is it STILL Bush’s fault...
I saw the damage my parents caused by giving them money so that idea is right out.
Can I have their money? We’re brothers in a way.
But resist proofread, you much
and you will much
A scenario such as that is uncharted territory, assuming one owns lots of assets requiring fiat currency to maintain.
Consider the Agenda-21 game, being played out today in many towns and cities, where the purpose is to get people out of their big-carbon-footprint homes into affordable inner-city apartments, with loss of property rights. All of a sudden a “crisis” pops up for which there is already an agenda-based solution for.
We live in interesting times...
Accurately, it’s 47%, and they’re the same ones who vote (D) to keep the handouts comin’ from Obama Money.....
I heard Glenn Beck say today that Monsanto had signed on with the Agenda-21 folks.
About three years ago....I had this guy telling me about his neighbors. The husband and wife were pulling in around $170k per year between them. The house was a $700k house, with $2,400 payments due each month. Both had new cars. Credit cards were maxed to $70k between them. One had student loans in the $40k range still left to go. While they did put money into their 401k, they were mostly broke after that point. If either ever got unemployed....they’d probably go under within six months....because there was no extra cash around except the 401k that they could utilize. Twenty years ago....I wouldn’t have believed a story like that. Today? There are thousands of couples around America in such lousy economic shape.
Besides that....I have an offshore account. And I don't have their kind of money..........
After being unemployed for almost 2 years, out of desperation I accepted a job and am paid my 1992 salary when I was with the phone company....pathetic.
There's no excuse for that. That's a dream income for some of us.
It is not all that great to make more. You will just give it to umbama so he can buy more votes. I wish I made less. It makes me sick how much I have to give the gov.
“More than one-quarter of households earning $55,465-$90,000 annually have less than three months of savings. “
Figures like this have no meaning without context. In rural Alabama, this might make you pretty wealthy; in New York City, you would certainly be on welfare.
“... that’s a dream income for some of us..”
Unfortunately, if you look statistically across the nation.. that is a really nice income. However, I think it depends on the location that you live/work. I hate to say this but if a family in our county/state made 55 grand a year, they would be living in the absolute worst sections of the county. (we are talking about no WIC, housing assistance etc.. just plain income). Apartment rents in not so nice areas go for $1500 a month. Townhomes start at the $300,000 range (and they are in the not so nice area).
The other half never saw the view from the cliff in the first place....
Nothing intended citing them other than an example of respected conservatives with clout; I certainly enjoy both, especially Levin.
Good point that anybody can start an offshore account... and point graciously taken!
“More than one-quarter of households earning $55,465-$90,000 annually have less than three months of savings.
I bet they have lot’s of nice toys though.”
We don’t, but the worthless parasites we feed in the nearby welfare reservation do.
“On the other hand, Ive seen families do quite well on minimum wage. Its all about priorities.”
I don’t know about Texas, but people doing well in NJ on minimum wage are having their rent, groceries, cell phones, and college paid for by me.
Dad dead. Mom close to Medicaid. Sorry
I’m sure you know I was just joking. All the best.
Rush earns his money - he’s not some liberal elite who steals tax money to secure his wealth. Use dem examples... please.
I always liked this commercial:
I'm in debt up to my eyeballs...
You Tube Link
That’s where her money went.
Still calling this OBAMA DEPRESSION a recession I see.
Smith and Nephew just laid off quite a number of people over 0’care.