Posted on 01/26/2025 5:54:41 AM PST by thegagline
*** A full 59 percent of Americans aren’t in a position to use their savings “to pay for a major unexpected expense, such as $1,000 for an emergency room visit or car repair,” said a Jan. 23 report from the company.
This is up from 56 percent a year back.
“We are essentially a paycheck-to-paycheck nation,” said Mark Hamrick, senior economic analyst at Bankrate. *** To help alleviate the financial crunch, President Donald Trump issued an executive order for*** “emergency price relief” for families and tackling the cost of living crisis facing America on his first day in office. The 12-month inflation rate, which has remained below 3 percent since July, has risen for the past three months. *** In the survey, 73 percent of respondents blamed inflation, high interest rates, or a change in income or employment status as reasons why they were saving less to meet unforeseen expenses. This is up from 68 percent last year *** [T]he average city price of a dozen Grade A large eggs has risen by more than 182 percent between January 2021 and December 2024. The price of ground beef per pound is up by 41 percent, fresh whole chicken by nearly 30 percent, whole fortified fresh milk per gallon by 18 percent, and white pan bread per pound by almost 24 percent.
A quarter of respondents said they would have to fund $1,000 in emergency expenses by financing it with a credit card and paying off the debt over time. This is up from 21 percent in 2024. *** The cost of living crisis among Americans developed while the savings rate has gone down. Since 2022, the personal saving rate of U.S. citizens has mostly remained below 5 percent. Prior to the pandemic, the rate largely was above the 5 percent level. ***
(Excerpt) Read more at ntd.com ...
1) Although outside forces like inflation and taxes do contribute to the lack of savings, the lack of financial discipline is primarily the reason most people in financial dire straits.
2) Put at least 15% of your gross income aside for a rainy day fund.
3) The Rule of 72 is both your best friend and worst enemy.
if you can’t save a 1000 dollars now days.
You need some serious monetary advice.
People are getting laid off all over the place. No one is hiring, and if they are, only offering a bare minimum compensation and no benefits.
Gov’t employment numbers are BS. Unemployment is way higher then they are stating and wages are way down.
It’s the same as the obesity epidemic. People are lazy.
Diabetes is 50% preventable. SSI makes workers think they’ll be taken care of-until it can’t. Luggage checkers on 911 did their job as box cutters were allowed. Now we all pay an extra fee per ticket to get treated like cattle.
People who say this is a problem want to make it OUR problem.
Take off some weight. Staycations-don’t travel.
The more government gets involved the more the problems spread.
If you get on the right track money is easy. My ex wife was very good at #1 paying off credit card every month, making a budget and saving money. Once you get that system in place you will not have nearly the difficulty or the credit card fees/charges and you will have emergency funds.
Until we start having Real and Rational conversations about ABOLISHING the 3rd Central Bank, it is all just blather and meaningless drivel.
But they can afford a $150 phone bill
I know people are experiencing hard times with the current economy but I really don’t think this is true. A lot of people experience a $1,000 emergency every year. If they didn’t have the money, the country would be in a massive crisis. If you dig down, I am sure certain groups don’t have $1,000 - kids in their early 20s probabably don’t (although the way I see them spend, I doubt that too).
I was saving money while making 89 cents an hour washing dirty dishes in hospital cafeteria during my college student days.
**But they can afford a $150 phone bill**
Don’t forget the tattoos.
and a $200 teevee bill ...
Good advise.
There is an attitude today that cost any setback in your life should be borne by someone else.
Health care, someone else should pay
Retirement
Natural disaster
To name a few.
For me,the biggest problem is insurance. It must be nice for them to wake up and say to themselves, “Hey let’s double our prices.” We are going to need much more than a handful of deportation planes to make a difference. It’s like that old math problem where you figure out how fast vampires spread. ( the illegals keep making more little illegals)
When I was in college, I went to A&P on Monday to buy discounted bread. I saved some money
It was spent on beer.
Yeah, this is not a result of people not earning enough, it’s a result of wasteful spending. Sounds just like the government!
At least you didn’t squander it!
I had accumulated $1200 by the time I graduated from college. That was good money in 1962. I was able to travel to Chicago where jobs were plentiful in manufacturing industry in those days. I found a job as mechanical engineer I just 2 days in Chicago.
The price of insurance is the result of actuarial analysis of risk.
In an inflationary economy as the price of everything rises, the cost for mitigating the risk also rises. With new trucks being purchased at prices exceeding $100 k, managing the risk to all becomes very difficult.
But...... the cost of the insurance must rise along with the costs associated with the outrageously expensive new vehicles
There’s a good reason why Buffet has heavily invested in insurance. Ruke of thumb: in the end, the house wins.
Holy crap! When did you go to school? In 1950, the minimum wage was $1.00 per hr.
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