40% of Americans don’t have $400 in the bank for emergency expenses: Federal Reserve
Almost 40% of American adults wouldn’t be able to cover a $400 emergency with cash, savings or a credit-card charge that they could quickly pay off, a Federal Reserve survey finds.
About 27% of those surveyed would need to borrow the money or sell something to come up with the $400 and an additional 12% would not be able to cover it at all, according to the Federal Reserve's 2018 report on the economic well-being of U.S. households released on Thursday.
Why should I keep it in the bank at 0.003% interest? --- I'm losing money by it being stuck there!
Wages DO NOT KEEP UP WITH Cost Of Living, and haven’t done so for 20+ years.
I have a friend who earns $110,000 a year as a banker of all things and is always broke and borrowing money from me regularly (to be fair, he always pays me back).... meanwhile, my mother and father law together have never earned more than $50,000 TOGETHER in a year... and their savings and retirement accounts will just about take your breath away. It’s not what you earn, it’s what you keep.
In my area, SF, where rent is higher than NY, the cost of average rent is$3,903.00, a Subway sandwhicg is 10 bucks, a gallon of gas is $4.09, bridge toll is 6.00, a movie theater ticket is 15.99 and if I take the commuter train and bus to work in Silicon Valley, it will cost 500.00 per month. How can the feds expect you to save with the highest cost of living. Plus, the State of California taxes and imposes fees on literally everything. We even have a soda tax.
For some, the status symbol is the flashy car or the massive house.
I don't have $400 in the bank for normal expenses....let alone emergency expenses...sheesh....
a big part of this problem is that many people don't manage their finances well. I know many that don't and see it all the time. Eating out all the time, Starbucks twice a day, buying the latest and greatest of everything. Many people just can't live within their means and do not have a long term investing or savings strategy.
Americans got $3000 refrigerators at home and nothing in it , spending money at restaurants instead making meals by them selfs.
When I was born, America ranked #1 in quality of life. We have now fallen to #19, IMO thanks to the takeover of our economy by multi-national corporations who have devastated the American working class. Started back in the 1988's and has continued with occasional pauses to roll down hill.
Prices for necessities keeps rising but wages remain stagnant.
Has anyone looked at the price of everything from homes to food?
It's shocking how prices have increased in just the last 15 years.
If you can't afford to put away $20 every month in a savings account, you have serious issues.
29 and have about $50k in savings. It's called being smart with your money and making sacrifices. I changed a lot with my spending habits, made sacrifices regarding fun time, and social time with my friends. I paid off my car so that i would have an extra $500 a month in my bank account. I switched phone plans, was paying $73 a month, now i pay $20 a month with limited data. Now my goal is to tackle credit card debt.
I’m 28. And I have almost $15k in savings. The only way I was able to save this much was because I didn’t spend more than what I couldn’t afford.
It’s not easy when rent is almost 2000$ a month. Something needs to be done about that. Rent was affordable means of living, not nearly as much as a house payment.
broke my neck , had my husband drive me to the ER as to not have to pay for the dang Ambulance ... we pay $1500 a month for health insurance ... Ambulance is not covered
Simple fact for lower income workers wages barely change but rents and other basic expenses soar.
I've worked 2 jobs for 12 years even though I could easily support myself on only 1 job. I now have $ 120,000 cash in the bank.
You can bet they've all got a $1000 phone in their pocket though.
So things have actually gotten worse. Last year it was shown that half of working Americans had less than 800 dollars in savings.
Over 43 million Americans live in poverty including the working poor.
Will get worse soon. Wait for it.