I read that half of Americans couldn’t cover an unexpected $1,000 expense. This sounds crazy to me. I understand that poverty exists, but the idea that an adult with a job doesn’t even have that amount saved up seems really strange.
What’s your relationship or philosophy with money? What do you credit for your financial success, or alternatively, what do you blame for your failures?
For the extra brave ones: how much savings do you have, and what are you planning to do with them?
They release data for stuff like this. Currently 46% can cover a cost of $2K or more with just savings. 57% for $1K or more.
But it’s even worse than that - what kind of emergency is that cheap? Sure I could replace tires in my car within that amount, but could not repair a car accident. I could visit an ER within the amount but could not pay for medical care for sickness or injury. I could call a plumber within that amount, but not not repair or replace things after a leak. I could travel to see my elderly Mom if she were sick, but could not afford a place to stay there within that amount