A $500 surprise expense would put most Americans into debt
While the jobless rate is down and wages are up, most Americans nevertheless remain one misstep away from a financial crisis.
Fifty-seven percent of Americans don’t have enough cash to cover a $500 unexpected expense, according to a new survey from Bankrate, which interviewed 1,003 adults earlier this month. While that may appear dire, it reflects a slight improvement from 2016, when 63 percent of U.S. residents said they wouldn’t be able to handle such an expense. The improvement reflects the stronger U.S. economy, but is still far from ideal, Bankrate.com said.
The findings shed light on how many households continue to struggle with their basic finances more than seven years after the official end to the recession. Despite steady job growth during the Obama administration, wages have been slow to recover, with the typical American household still earning 2.4 percent below what they brought home in 1999, when income peaked. At the same time, costs for essentials such as housing and child care have surged faster than the rate of inflation, placing stress on household budgets.
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I don't currently know anyone who is living within their means.Too much house,too much car,private schools for the kids,etc.Almost everyone has had some form of economics training,but when they venture out into the world they cast common sense aside and set a course for the American dream.I would love to see a study,if it would be possible,to determine how many people make adequate money to live well but fail to abide by those constraints.Any extra income is an excuse to spend more.Whatever happened to a mortgage payment not exceeding 1/4th of a household's monthly income and making monthly payments in advance for a vacation?I have always lived a conservative lifestyle even when I made serious money,so I have no sympathy for those who live up to every cent they make.
ReplyDeleteAnd wait until the uninsured get their letters from the IRS about paying a big penalty soon! The Supreme Court said it's illegal to penalize for not purchasing insurance but they could tax everyone the same. Do you think that is happening? Not!
ReplyDeleteHave a paid off house and cars and still.the electric bills water bills cable bills and food bills are eating my paycheck up.On top of that the cars/house I have need repairs which leaves me broke every month, we need better jobs and more jobs.And we need the state, fed, health and utilities to stop stealing from us.They make way more than they spend.
ReplyDeleteThanks .......to the DEMON-CRATS
ReplyDeleteI believe it. It was that way for me 15 years ago after I got divorced until I dealt with my credit card debt and my children outgrew the need for daycare. It wasn't until those two expenses went away that I was able to shrug off those extra and unexpected expenses.
ReplyDeleteThe Big Surprise Expense is > the Obama Plan screwing you
ReplyDeleteout of your Tax Refund you thought you were getting (NOT)
Have fun heating your homes this winter.......
Be glad Hillary LOst the election..........
Remember and Don't Forget what the Demon-crats did to You !
ReplyDeleteMost people have 2 to 3 hundred dollar a month cell phones .Drink expensive coffees and energy drinks and a pack of 7 dollar Marlboros in there pocket.We need to start relearning how to do some things ourselves instead of paying someelse to do it for us.
ReplyDeleteFACT!!
ReplyDeleteWe Poor on the Eastern sHoore ....
ReplyDeleteThes jobs make you work for free, want it all , give you 0