Current Events > 40% of Americans don't have $400 in the bank for emergency expenses

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https://news.yahoo.com/40-americans-don-t-400-bank-emergency-expenses-172500547--abc-news-topstories.html

Wow. I can't imagine being in that position. I haven't had less than $500 since around age 14.
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I was told the economy was good, though
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They spend more than they make.
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Austin_Era_II posted...

They spend more than they make.

hard not to do that when you're in debt up to your eyeballs and still want to not hate your life
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Wow, Im unemployed and even I have more than that
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Peasants. My bank account hasnt been that low since I got divorced

It's really sad. They also live in places that homes cost like 50k so there is no economy.
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Even if I had that much, it wouldn't be enough to cover any emergencies anyway.
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>doesnt know that many still lives from paycheck to paycheck
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Hey, when the cost of living doesnt stay in line with wages, what did people expect? Creating an entire generation of uber drivers, air bnb hosts (landlords out west are literally offering people lodging to run their air bnbs for them) and Amazon factory slaves, then scoffing at their lack of income ("if they just never did anything recreational and lived off the bare essentials, they wouldnt be so broke!")...its all one big joke
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It sucks, but much of it is self-made stupidity. The number of people I've seen asking for advances because they apparently don't have enough money for gas while holding their $5 coffee and $8 pack of cigarettes is mind boggling.

I have like $3,500 in the bank but I'm like $14,000 or more in debt.

Pretty simple when you try to live above your means 24/7 and havent been taught to manage your money.
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nemu posted...

It sucks, but much of it is self-made stupidity. The number of people I've seen asking for advances because they apparently don't have enough money for gas while holding their $5 coffee and $8 pack of cigarettes is mind boggling.

"stop buying avocado toast if you want to own a home!!!"
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It always amazes me that even as an unemployed disabled person, I still somehow have more in savings than nearly half of the US.
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i save $1000 fortnightly.
must suck to not have $400 even after multiple pay cycles.

im sure theres legit people out there in a bad situation and struggling, but how many people make bad choices and put themselves in a bad financial situation?
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SSMajinVegeta2 posted...

havent been taught to manage your money.

Why do people need teaching? Is it not common knowledge that if you take 2 from 1 you will end up negative?
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BlockAddition posted...

SSMajinVegeta2 posted...

havent been taught to manage your money.

Why do people need teaching? Is it not common knowledge that if you take 2 from 1 you will end up negative?

You'd be surprised. A lot of people see no problem with constantly being in debt.
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Debt is kinda the American Way
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That's what credit cards are for: spending money before you have it! YEEEEEEEEEEEHAW YOU BETCHA BILLY BOB!
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LOL at not having even $400 for an emergency.
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averagejoel posted...

nemu posted...

It sucks, but much of it is self-made stupidity. The number of people I've seen asking for advances because they apparently don't have enough money for gas while holding their $5 coffee and $8 pack of cigarettes is mind boggling.

"stop buying avocado toast if you want to own a home!!!"

Expecting people to make smart choices is different than trying to push an entire issue under a rug. None of these people are ever going to be wealthy, but it's certainly easy to at least make sure your necessities are covered by temporarily cutting out things you don't need or at the very least replacing them with alternatives. If you're worried about gas, you shouldn't be spending inane amounts on vapid shit.

Antifar posted...

I was told the economy was good, though

boostraps
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And people think I'm a piece of shit because I save 40% of my paychecks.

clearaflagrantj posted...

And people think I'm a piece of shit because I save 40% of my paychecks.

Why would people think you're a piece of shit because you save money
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REMercsChamp posted...

clearaflagrantj posted...

And people think I'm a piece of shit because I save 40% of my paychecks.

Why would people think you're a piece of shit because you save money

Because clearly that's the entire story.
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I'm not exactly paycheck-to-paycheck, but I don't have much saved either.

I'm a HS Math Teacher
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AlecSkorpio posted...

It always amazes me that even as an unemployed disabled person, I still somehow have more in savings than nearly half of the US.

i barely scrape by. wouldn't even make it if it wasn't for my family.
there not going to be here forever.
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a lot of people have had bad luck of the draw, but a lot are also just fucking awful with their money (half of my family it seems like). we really need some type of mandatory business or money management class in high school.

I have a blanket policy of always having at least $10k in the bank.

Anything above that goes directly to my student loans.

Not gonna change that policy until I have no debt.
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Because a sliver of the population is sitting on more money than their descendants could physically spend.
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ledbowman posted...

Because a sliver of the population is sitting on more money than their descendants could physically spend.

This is a problem but it is not the reason
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Dark_Spiret posted...

we really need some type of mandatory business or money management class in high school.

That would be nice. Tax, Mortgage, debt, all that stuff can be explained in detail.

I don't necessarily agree with the "we should teach that over Trigonometry and Geometry" folks. We can do both.
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Financial mismanagement is definitely a component, I have to admit. I cannot tell you how many patients I have with "no money" for $4/month medications yet somehow have the money to smoke 2 packs of cigs/day.

But a much bigger issue is that the lower classes get nickled-and-dimed to death with fees, rentals, payday loans, etc.

Being able to buy something new outright, or with good credit, saves a ton of money.

Almost everything marketed to the poor is designed to be a long term money leech.
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Also the inflation/minimum wage inverse is brutal.
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ledbowman posted...

Also the inflation/minimum wage inverse is brutal.

I had no problem living on minimum wage about a decade ago, but only because I had zero debt or dependents. The problem is that very few people in that income bracket have no debt or children. You can't raise a family on minimum wage, period.
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Families are expensive.
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Well I'm not surprised the majority of people I know dont have anything saved at all. If they did it was short term savings for a trip or something.

Heck I didn't start saving real money until my late 20's
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DarkRoast posted...

ledbowman posted...

Also the inflation/minimum wage inverse is brutal.

I had no problem living on minimum wage about a decade ago, but only because I had zero debt or dependents. The problem is that very few people in that income bracket have no debt or children. You can't raise a family on minimum wage, period.

Yeah it wasn't that long ago that if you worked 40 hours you could have kids, car, ect.
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ledbowman posted...

DarkRoast posted...

ledbowman posted...

Also the inflation/minimum wage inverse is brutal.

I had no problem living on minimum wage about a decade ago, but only because I had zero debt or dependents. The problem is that very few people in that income bracket have no debt or children. You can't raise a family on minimum wage, period.

Yeah it wasn't that long ago that if you worked 40 hours you could have kids, car, ect.

You can do that now working 40 hours, just not on minimum wage. Well you probably could off minimum wage but it would have to be in a lcol area
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It's gonna be a huge problem when Millennials retire, as that entire generation has absolutely no hope for saving for retirement.
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I remember college professors telling students they worked at McDonalds and went to college paying off their schools that way.

30 years ago was a very different time to be working especially when companies kept up with cost of living.
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apocalyptic_4 posted...

I remember college professors telling students they worked at McDonalds and went to college paying off their schools that way.

30 years ago was a very different time to be working especially when companies kept up with cost of living.

But who's going to help pay for those CEO bonuses? Think of the CEOs!
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Antifar posted...

I was told the economy was good, though

This is about poor financial habits

Doesnt matter how much you make if you blow it all that fast
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It's the drugs.
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Austin_Era_II posted...

They spend more than they make.

Living beyond your means is a problem I'll never understand. Like why are people afraid to actually budget the absolute horror of adulting
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Not surprising. When I volunteered at a food bank I would see people drive up there in brand new ford explorers and stuff like that. Financial planning really needs to be taught in school.
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Some people just flat out don't like to save. One of my cousins is like that.

Literally won a small lottery of 15K a decade ago. Where did that money go? Savings? Pay off anything? No.

All of it went to vacation. . His money though so...
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Sada_Pop posted...

Some people just flat out don't like to save. One of my cousins is like that.

Literally won a small lottery of 15K a decade ago. Where did that money go? Savings? Pay off anything? No.

All of it went to vacation. . His money though so...

I find the easiest strategy is to dump all excess money into your high interest debt, then once that's paid off, go down the line with the rest of your debt until you have none. You'll be so used to not needing the extra money, it won't feel like a sacrifice when you dump it into retirement instead.
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