50% of the USA cant come up with $2000 if they needed to

[Sturg1647545502]

50% of Americans dont have 2k to spare.

 

now the size of the study and the specifics of the people surveyed(age, race, religion, sex, marital status) isnt included in this brief preview of the article but the last tiem i checked, well off people dont sign up for surveys/ collegiate experiments.

 

 

 

 

Financially Fragile Households: Evidence and Implications

Annamaria Lusardi, Daniel J. Schneider, Peter Tufano

NBER Working Paper No. 17072

Issued in May 2011

NBER Program(s): AG

The NBER Bulletin on Aging and Health provides summaries of publications like this. You can sign up to receive the NBER Bulletin on Aging and Health by email.

 

This paper examines households’ financial fragility by looking at their capacity to come up with $2,000 in 30 days. Using data from the 2009 TNS Global Economic Crisis survey, we document widespread financial weakness in the United States: Approximately one quarter of Americans report that they would certainly not be able to come up with such funds, and an additional 19% would do so by relying at least in part on pawning or selling possessions or taking payday loans. If we consider the respondents who report being certain or probably not able to cope with an ordinary financial shock of this size, we find that nearly half of Americans are financially fragile. While financial fragility is more severe among those with low educational attainment and no financial education, families with children, those who suffered large wealth losses, and those who are unemployed, a sizable fraction of seemingly “middle class” Americans also judge themselves to be financially fragile. We examine the coping methods people use to deal with shocks. While savings is used most often, relying on family and friends, using formal and alternative credit, increasing work hours, and selling items are also used frequently to deal with emergencies, especially for some subgroups. Household finance researchers must look beyond precautionary savings to understand how families cope with risk. We also find evidence of a “pecking order” of coping methods in which savings appears to be first in the ordering. Finally, the paper compares the levels of financial fragility and methods of coping among eight industrialized countries. While there are differences in coping ability across countries, there is general evidence of a consistent ordering of coping methods

 

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

 

 

 

 

http://papers.nber.org/papers/w17072

 

interesting

[Furloaf]

I would have figured a higher percentage, myself.

 

Wait... in 30 days? Holy shit.

[Trouble Maker]

It takes all people, from rich to poor. You can make just about any amount of money and live pay check to pay check.

[Drewhop]

I sell this 50% cars. You would be amazed at what a "financially uncertain" person can do when pressure is applied.

[Tractor]

It takes all people, from rich to poor. You can make just about any amount of money and live pay check to pay check.

 

This, I know lots of upper-middle to rich people who without selling something couldn't do it and who live with over drawn checking as a daily hassle.

 

I also know some that don't give a damn, are over drawn and could still just pull money from another account somewhere.

 

I think the number is much higher than 50 percent. Send like the survey probably included people selling items to get the needed money.

[04silvrz]

something like the wealthiest 1% control like 50% of the wealth. this was from 2007 - sure it's worse now...

 

http://www.mybudget360.com/wp-content/uploads/2009/12/financial-wealth-united-states.png

[AWW$HEEET]

America's Marginal Propensity to Save (MPS) to Marginal Propensity to Consume ratio is ridiculous. Essentially our MPS = .01, and MPC = .99. Many asian countries' MPS is around .10, MPC = .90.

 

Basically what it boils down to is on average, an American making $50k/year saves only $500/year. So to assume an american cant come up with $2k within 30 days is totally believable, when theoretically it would take a $50k worker 4 years to save that amount.

[Wease]

Living beyond your means is taking over America. Very sad....

[zeitgeist57]

I sell this 50% cars. You would be amazed at what a "financially uncertain" person can do when pressure is applied.

 

Troof. Sad, sad troof.

 

I take my daughter to Petland on Bethel every so often...it's like a petting zoo since you can touch and hold all the animals and birds. Surprisingly cool place, even though we don't have any pets. Nice staff and great assortment of animals for her to watch and hold.

 

When I go there am shocked at all of the young couples and families buying these puppy-mill dogs for $2500 to $3500 or more, and financing them. I overheard one of the staff telling this couple holding a puppy that the interest rate can be as low as 12.5% and there wouldn't be any payments for 90 days.

[AWW$HEEET]

Troof. Sad, sad troof.

 

I take my daughter to Petland on Bethel every so often...it's like a petting zoo since you can touch and hold all the animals and birds. Surprisingly cool place, even though we don't have any pets. Nice staff and great assortment of animals for her to watch and hold.

 

When I go there am shocked at all of the young couples and families buying these puppy-mill dogs for $2500 to $3500 or more, and financing them. I overheard one of the staff telling this couple holding a puppy that the interest rate can be as low as 12.5% and there wouldn't be any payments for 90 days.

 

wowww. you could end up paying 5k for a dog. fucking idiots.

[V8 Beast]

I bet most of the people on the list could come up with $2000 over a month. The question is can they live without the 4 tv's, cell phones, computers, and xboxes they would have to sell to make it.

[koolrayz]

What is really sad is that they are including people that could borrow the money in the 50% that CAN raise the money. I was surprised that the american saving average is only one percent. Then I remembered 50% of the people were I work are not enrolled in the 401K. This is particularly stupid when the company matches one for one on the first four percent.

[GRN96WS6]

Living beyond your means is taking over America. Very sad....

 

But...but....but....how am I supposed to keep up with the Jones'!!!

 

It is really sad that America is turning out this way. Being laid off twice has taught me that I don't need everything NOW NOW NOW and some things can and will have to wait when the time is right if I can afford it I will have it, if not no big deal.

 

People try to impress people with what they have only to lose it in an instant if shit goes south.

 

Guy I used to work with bought a townhouse for 500K in a declining area and had an interest only loan (still does) and they are now selling the same townhouse for $230K or lower!

 

He also thought it was a smart idea to buy a 35K 7yo Porsche bc he wanted one....not to pay off his home or at least pay it down. If he lost his job he would be fucked he could be without income for maybe 8hrs. His mortgage on both of them (yes two) is over $4k a month! for interest only! And his Porsche just dropped its timing chain....I don't want to know that cost!

 

Prime example of how NOT to do it.

 

401K IRA and invest in your future, you can still have fun doing it smart.

[Bobby Lee]

Living beyond your means is America's favorite pastime.

 

Fixed.

[Gergwheel1647545492]

 

Basically what it boils down to is on average, an American making $50k/year saves only $500/year. So to assume an american cant come up with $2k within 30 days is totally believable, when theoretically it would take a $50k worker 4 years to save that amount.

 

You been looking at my bank records?

 

While this scenario is about true for me, if i needed 2k in 30 days i could easily come up with it, i would just have to drastically change my "hobbies" for those 30 days.

[87GT]

I have more then $2000 in my saving account right now. America needs to try harder you fucking slackers.

[Forrest Gump 9]

I call BS. You can pawn your car, your TV, your jewelries, etc....That's easily $2K.

[Patrick]

Then I remembered 50% of the people were I work are not enrolled in the 401K. This is particularly stupid when the company matches one for one on the first four percent.

 

Damn. I was sure to enroll in mine ASAP at work. Pretty good deal here.

[V8 Beast]

...

While this scenario is about true for me, if i needed 2k in 30 days i could easily come up with it, i would just have to drastically change my "hobbies" for those 30 days.

 

No more cocaine!!!! :fuuuu:

[HotCarl]

Damn. I was sure to enroll in mine ASAP at work. Pretty good deal here.

 

i never understood why people dont contribute to their 401k's, ESPECIALLY if your company matches any amount. Its literally your employer writing you an extra check every pay period and you saying "no thanks i dont want it". I work with a guy who is adamately against having a 401k b/c he says "people lose their asses and go broke with them" wow really? just because we're coming out of a recession doesnt mean a 401k is a bad investment tool?

 

Living beyond your means is taking over America. Very sad....

 

Exactly! Ive been reading Dave Ramsey's book lately and have been cutting back. My car will be paid off in the next 3 months, thinking of getting rid of my cable to save more. Shit with work and school i hardly watch tv anyway.

[HotCarl]

I also heard a stat that said only 45% of Americans work... as in have a fucking job. Really?! 45 fucking percent. I thought it was in USA Today but not totally sure where i saw it.

[Furloaf]

I need to hurry up and open my paycheck advance/loan sharking business.

[2pointslow]

With the woman picking up more credit hours at school and not being able to work we are now living pay check to pay check.

 

However... i could get 2k+ by tomorrow, if i needed to.

[2highpsi]

Everyone should have 6 months living expenses set aside, fully liquid, at any given time.

I'd be willing to guess less than 10% of people actually do...

[koolrayz]

Everyone should have 6 months living expenses set aside, fully liquid, at any given time.

I'd be willing to guess less than 10% of people actually do...

 

I would bet less than 3% have the correct liquid living expense money.