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'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.
I had that example too from my parents. In fact, a lot of people at my schools would be decked out in expensive latest fashions but not us, so I thought we were poor! My mom had to explain to me sometimes that those families spent everything they made on those fancy cars and clothes. She’d whisper that dad earned 10x what their fathers earned.
They never had a brand new car until in their 70s. They had zero luxuries except a few pieces of art that gave mom pleasure, and some really nice trips that they really enjoyed. They did buy properties, two vacation homes that they get a lot out of. And have proven better investment than the market.
Can I count what is usually in my wallet? Then no problem. Fifteen minutes, if the bank is open. Or, I can use a debit card? You take gold?
I couldn’t always...but I am older and I lived through a couple of episodes of no ATMs. Two months worth? Yup...got that too.
I know people who couldn’t come up with $500 if their lives depended on it. Yet they seem to have everything everybody else does.
I don’t have to imagine anything. I KNOW whatever organization I would it give to would take a hell of a lot of it to pay the CEO, the delivery companies and the regular graft. The slugs that would receive the largesse would spend it on shit or sell it for drugs, liquor or TV’s. Scratch, fight and educate yourself as I had to. I’ve given a $1000 envelope to veterans’s trying to make ends meet, but they seem to want the never ending gravy train also.
Some of my sister's friends are this way; they take advantage of every government program under the sun, and they never want for anything...because they're "poor".
In the mean time, I work for everything I own...and for what other people own, as well.
Congrats, you're doing it right. We do the same. We could afford new cars every year, but drive 20-year-old ordinary cars. Same goes for property and possessions. We do all our own remodel and fix-it repairs. My debt-ridden sisters say that if they had my money, they'd drive Jaguars and wear expensive jewelry. Which is why they're poor and in debt. We passed these concepts to our own now-grown children, which they apply for their young families. Live below your means, and do-it-yourself (and hide what you do have). Also avoid fancy vacations, a waste of money. Plenty of cheap places to visit and enjoy.
Yep, you sound like someone who is just not generous and develops all these rationales for not giving to any charity. All charities are crooked operations; that’s what you’re saying, isn’t it?
That’s exactly what savings are for.......emergencies. Otherwise why have them?
But saying that I know a whole lotta people who would have trouble coming up with an extra couple of hundreds.
I am 58 and retired. Hubby is 61 and retired. We are at the point where we reasonably can have what we want, jewelry, cars, etc.
When we were younger we were responsible, worked our tails off to make us comfortable now. While we were doing that everyone else in the family was out partying and having fun. Now we can afford what we want and they are all living hand to mouth. They still don’t get it.
Now I am determined to spend what I want I don’t see the point in living frugally just to leave it all to someone.
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