Posted on 04/23/2020 4:24:55 PM PDT by Enlightened1
The COVID-19 outbreak has spurred not just a health crisis, but also an economic one. With millions of Americans now out of work and countless small businesses shut down, a large number of U.S. adults are already scrambling to pay their bills.
While emergency savings can be a lifeline in situations like the one we're facing, 50% of Americans expect that their savings will run out by the end of April, according to a new survey by real estate service Clever. And given that the crisis is showing no signs of letting up in the near future, that's extremely troubling.
Unemployment claims have been reaching record highs as Americans scramble to put money in their pockets in the absence of a paycheck. But those benefits, even with the newly approved $600-a-week boost that came about in late March, may not suffice in helping those who are out of work pay their bills.
That's where emergency savings come in. Ideally, we're all supposed to have three to six months' worth of living expenses in the bank to prepare for situations like these. Yet 27% of those surveyed by Clever said they never had emergency savings to begin with, while 11% said they've already spent theirs. In fact, only 23% of respondents have enough money in the bank to cover six months of living expenses or more.
If you're out of work and don't have emergency savings, it's obviously too late to go back in time and build some. But what you should do is make establishing an emergency fund your first priority once things get back to normal. That way, if another crisis arises and you're unable to work for a period of time...
(Excerpt) Read more at fool.com ...
If grocery stores start getting raided, then there will be a food shortage.
I’m retired too, but I’ve lost about $10K in income and my capital is down $400K. I expect it to come back within a year.
Still working, got maybe nine and a half grand, saving five or six hundred per month.
Not like when I was young and healthy, but then the kids are grown.
If both of us became unemployed we would coast for probably six months instead of continuing to save.
“The good thing about being retired is that our pension income is not affected.”
Read about what happened to the pensions of Russians after the Soviet Union collapsed. Pensions are only as solid as the economy that supports them. You might not believe it but your pension is entirely dependent upon America doing well and your sense of complacency may not be justified.
If this lockdown continues too long the financial repercussions could lead to many pensions getting cut.
Income actually has gone up for me.
God will Always provide.. All we have to do is ask.
I don’t have any savings to run out of. Thankfully I have a pension and social security so I can help my kids out a bit.
Work hard, keep learning, and thus be an asset to your company.
Live within ones means.
Keep out of debt.
Save, save, save.
L8r
yep so are business owners who have supported their employees for 112 years. I run a family business that had over 225 employees on January 1st. Now down to about 175 but have to think about closing it permanently.
hate to do it but I can’t put money back into something that will perhaps fail after Covid 19. I can’t believe its almost been 60 days of this train wreck....
If it ended today we still might not make it as who has the money to buy anything.
How will America pay back what we are printing to stay in business.
What kind of inflation will we have in the future. Will we have 30% unemployment by June 1. then we will be in a serious depression.
Not just the demonrats. Our asshole R governor in Idaho is every bit as bad.
Agreed
And here...I thought the Corona caused this situation...
I am a software engineer and still working, from home of course. Feel blessed to be working ...
This alone should be demtard impetus to open things up.
No they are too commotted to wiping out whatls left of the middle class.
Pretty sad. Too bad money management skills was replaced in public schools by the 3-R’s: racism, recycling and reproduction.
America needs to tap its natural resources to help pay down this debt. Trump should use the national emergency to suspend all environmental restrictions on mining of rare earth elements and other materials, which we have in abundance, but which Clinton and Obama restricted via ridiculous “national monument” declarations and other environmental holds...handing China a virtual monopoly on this critical mining, worth tens of billions per year.
I read the tea leaves in late January and spent February-March paychecks stocking up on food before any outbreak in US was announced (should be good for much of the summer). Our freezer was already full when company laid everyone off mid-March (because of poor choices by management last fall, I already anticipated running out of work by now anyway and had been looking for another gig).
While everyone was going nuts on toilet paper, we were gathering ingredients for homemade bread, biscuits, and making our own tortillas and nacho chips. I think I am gaining pounds from just the aroma of sourdough bread in the oven.
The state is dragging their feet on PUA, but hear that will be resolved by next week. Utilities are paid up and fuel tanks are filled. Money might be an issue if wife runs out of cheese and chocolate, but again good for a bit.
Last weekend we found a local farmer’s market giving away free seeds so we stocked up to start a veggie garden and collecting mason jars for canning later. We are close enough to the farms there is usually fresh produce, eggs, and honey when the Walmart shelves are bare. We plan when economy recovers to move closer to the food/water sources and further away from the panic who rely so much on dead-beat government.
Partially subsidizing two relatives to keep them afloat.
“How long can you tread water?”
True. Or - the same effect in a different form - the pensions are paid in a currency which is being wrecked by inflation. That may be the next turn in this road.
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