47% of Americans would have to Borrow or Sell Something to Cover an Unexpected Expense of $400

[fredjr82]

Financial security has been elusive for millions of Americans since the Great Recession ended. A new report (pdf) from the Federal Reserve demonstrates one way that this insecurity can manifest itself for people.

As part of its October 2014 survey, the agency asked 50,000 people if they could handle an unexpected “financial disruption” costing them $400. Just over half (53%) said they could “fairly easily handle such an expense” by using money in their bank accounts (checking or savings) or by leaning on a credit card.

But for 47% of respondents, $400 was a tougher problem to handle. Within this group, 14% said they simply couldn’t cover it. Another 10% would have to sell something, 13% would have to borrow money from a friend or relative and 2% would have to resort to a high-interest payday loan.

This finding was buried within the Fed report that otherwise offered a rosier outlook on the state of Americans’ financial status.

“Overall, since the previous survey in 2013, individuals and their families experienced only mild improvements in their overall well-being, but they are increasingly optimistic about the trajectory of their well-being going forward,” the report says.

http://www.allgov.com/news/where-is...-unexpected-expense-of-400-150502?news=856624

 

[Huey Grey]

More tax cuts for the rich should cure this problem.

 

[22*43*51]

I wonder how many of that 47% has a savings, or checking account.

Likely not an income issue as much as it is a money management issue. I think we all agree education in many areas isn't what it used to be.

The 2% that would utilize a Pay-Day loan really need to be sat down and talked to...

 

[22*43*51]

More tax cuts for the rich should cure this problem.

C'mon now. You can't say that 47% of Americans are incapable of saving $400 without agreeing with Romney.

 

[fredjr82]

I wonder how many of that 47% has a savings, or checking account.

Likely not an income issue as much as it is a money management issue. I think we all agree education in many areas isn't what it used to be.

Agreed. The wife and I have a pretty good emergency fund inside of savings that doesn't get touched (very often). Before we had kids, saving money while important wasn't a huge priority for us. Since the kids have come into our lives setting up 529s along with saving as much as possible has become a priority in the event one of us should lose our jobs. Hindsight always being 20/20 I really wish we would have started saving before the kids came along because we would of had a pretty large savings account currently. Can't go back in time now so we make it a priority to continue growing that savings account as much as possible.

 

[22*43*51]

Agreed. The wife and I have a pretty good emergency fund inside of savings that doesn't get touched (very often). Before we had kids, saving money while important wasn't a huge priority for us. Since the kids have come into our lives setting up 529s along with saving as much as possible has become a priority in the event one of us should lose our jobs. Hindsight always being 20/20 I really wish we would have started saving before the kids came along because we would of had a pretty large savings account currently. Can't go back in time now so we make it a priority to continue growing that savings account as much as possible.

You sound like you have a solid plan Fred.

 

[Huey Grey]

I wonder how many of that 47% has a savings, or checking account.

Likely not an income issue as much as it is a money management issue. I think we all agree education in many areas isn't what it used to be.

Definitely a money management issue. Everyone knows the poor pull down some serious cash, but just don't know how to handle it. And I couldn't agree more on the educational comment. Which is why I support the Republicans in cutting education even more. Give a man a fish and he'll eat for a day. Teach him how to fish and he'll eat for life. But do neither and he'll have no choice but to pull up his own damn bootstraps for a change.

 

[22*43*51]

Definitely a money management issue. Everyone knows the poor pull down some serious cash, but just don't know how to handle it. And I couldn't agree more on the educational comment. Which is why I support the Republicans in cutting education even more. Give a man a fish and he'll eat for a day. Teach him how to fish and he'll eat for life. But do neither and he'll have no choice but to pull up his own damn bootstraps for a change.

Good job injecting politics. This wasn't looking like an HROT thread for about four posts.

 

[22*43*51]

Correction. I guess you first responded in post number two.

 

[Huey Grey]

Good job injecting politics. This wasn't looking like an HROT thread for about four posts.

Thank you for showing the error of my ways. You're absolutely right. Politics has absolutely nothing to do with half of our society mired in low paying jobs.

 

[22*43*51]

Thank you for showing the error of my ways. You're absolutely right. Politics has absolutely nothing to do with half of our society mired in low paying jobs.

Now you're just getting emotional.

 

[Run&Blade]

Some kind of tax of gross earnings for the super rich is needed. This money would go directly to the poor. No bs government programs cops teachers or any of that crap. Just money


Big problem is when the government raised taxes they feel the need to spend it on programs and social causes.

 

[whatsup12579er]

Definitely a money management issue. Everyone knows the poor pull down some serious cash, but just don't know how to handle it. And I couldn't agree more on the educational comment. Which is why I support the Republicans in cutting education even more. Give a man a fish and he'll eat for a day. Teach him how to fish and he'll eat for life. But do neither and he'll have no choice but to pull up his own damn bootstraps for a change.

How many poor people do you see smoking cigs? A lot of them. Usually it is one of a long list of bad choices they have made to put themselves in the position they are in. You can' tell me with a straight face that poor people smoking cigs is not terrible money management both for them as an individual and us as a society as we will end up paying for their health problems from smoking down the road.

How many packs of cigs can you buy with $400?

 

[Goergs]

Are we sure the 47% are not married men who have been denied access to the checkbook?

 

[What Would Jesus Do?]

Wow. If the claim in the OP is true, that's scary.

 

[22*43*51]

How many poor people do you see smoking cigs? A lot of them. Usually it is one of a long list of bad choices they have made to put themselves in the position they are in. You can' tell me with a straight face that poor people smoking cigs is not terrible money management both for them as an individual and us as a society as we will end up paying for their health problems from smoking down the road.

How many packs of cigs can you buy with $400?

If they found a cool Tat for $400 I would bet that money would be found in the sofa cushions.

Quick.

 

[86Hawkeye]

More tax cuts for the rich should cure this problem.

No. I think tax increases on the "rich" would absolutely solve the problem

 

[HallofFame]

Is this the result of white privileged or global warming?

 

[Pepperman]

How many poor people do you see smoking cigs? A lot of them. Usually it is one of a long list of bad choices they have made to put themselves in the position they are in. You can' tell me with a straight face that poor people smoking cigs is not terrible money management both for them as an individual and us as a society as we will end up paying for their health problems from smoking down the road.

How many packs of cigs can you buy with $400?

Smoking and scratch off lottery tickets are staple items for the poors.

 

[jscott78]

Are we sure the 47% are not married men who have been denied access to the checkbook?

They knew that was coming when they married a girl who wanted to keep or hyphenate the last name. So no pity.

 

[HRiscool]

There are 47 percent of the people who will vote for the president no matter what. All right, there are 47 percent who are with him, who are dependent upon government, who believe that they are victims, who believe the government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, to you-name-it. That that's an entitlement. And the government should give it to them. And they will vote for this president no matter what…These are people who pay no income tax.

Romney went on: "[M]y job is is not to worry about those people. I'll never convince them they should take personal responsibility and care for their lives."

http://townhall.com/tipsheet/keving..._americans_will_vote_for_obama_no_matter_what



















Maybe there is a correlation between the 47% and which party they vote for?

"Democrats, telling losers that nothing is their fault for over half a century."

 

[Funky Bunch]

How the hell is it that high if a credit card counts the same as cash?

 

[linkshero]

What can you even buy for $400.00 any more? Besides 12 lapdances...

 

[KitingHigh]

C'mon now. You can't say that 47% of Americans are incapable of saving $400 without agreeing with Romney.

Oh no, it's definitely the riches fault that the "poor" would rather drive a late model car, watch a HiDef Big screen tv and talk on a new iPhone then save a little money for an emergency.

 

[bagdropper]

Sheesh, I have $400 at the very least in change at home...probably a lot more.

Come home for the day, change in pocket, toss it in Mason jar. Never spend it. I call it my Polish savings account.

Probably 15 jars total if my memory is good...now that I think about it, it's probably a grand total.

 

[Hawkeyemc]

I'm surprised the Dems haven't set up a social program for this yet. You need $400 for something unexpected? Come to this office and fill out a form.

Let's be honest, it is shocking and unfair for the American people to not have $400 for an unexpected event. It is clearly the fault of the wealthy and we should mandate a government program to fix this situation immediately. Basically what we are doing with increasing the minimum wage.

 

[beanerhawk]

How the hell is it that high if a credit card counts the same as cash?

You would be shocked at the amount of people that have bad credit that can't get a credit card, I have employees that work all over the country and it's shocking how few have a credit card to rent a car. Very few do.

I'd like to know what percentage of those people are under 30 years old. When I was 25 having $400 laying around would of been a big deal, now every month we have an unexpected $400 bill of some sort.

 

[HRiscool]

I'm surprised the Dems haven't set up a social program for this yet. You need $400 for something unexpected? Come to this office and fill out a form.

Let's be honest, it is shocking and unfair for the American people to not have $400 for an unexpected event. It is clearly the fault of the wealthy and we should mandate a government program to fix this situation immediately. Basically what we are doing with increasing the minimum wage.

I'll say this about the minimum wage. At least you must have a J-O-B to take advantage of it. If I had to make a choice between GIVING the parasites EBT cards and free phones and creating a pay-scale above their pay-grade. I would take the latter in a heartbeat.

I would love to see a PRESIDENT say on national TV, "Now that we have a mandated living wage no one is eligible for welfare unless they can prove there is no employment possibilities for them anywhere."

All these BS democrat claims that welfare recipients are basically people who really want to work would quickly be exposed as lies.

 

[h-hawk]

This makes it even clearer how medical bills cause most bankruptcies. For a poor person who doesn't even have $400, huge medical debt is an impossible burden.

http://www.cnbc.com/id/100840148

 

[HRiscool]

This makes it even clearer how medical bills cause most bankruptcies. For a poor person who doesn't even have $400, huge medical debt is an impossible burden.

http://www.cnbc.com/id/100840148

cnbc LOL

 

[linkshero]

You would be shocked at the amount of people that have bad credit that can't get a credit card, I have employees that work all over the country and it's shocking how few have a credit card to rent a car. Very few do.

I'd like to know what percentage of those people are under 30 years old. When I was 25 having $400 laying around would of been a big deal, now every month we have an unexpected $400 bill of some sort.

This, I have a wife and daughter. I have an unexpected $400 something about every other day.

Sad example..... I run a monthly budget, with all bills, plus I account for savings, food (groc), food (eating out), gas, and entertainment. I try to make sure after that, we still have X000.00 left for the month. It's amazing how many months that X000.00 that should be left at the end of the month, ends up being X00.00.

 

[aflachawk]

Thank you for showing the error of my ways. You're absolutely right. Politics has absolutely nothing to do with half of our society mired in low paying jobs.

Politics involved in decisions in DC? Color me shocked

 

[HawkeyeHitman]

Janet Yellen needs to go. She is doing more damage to America than Obama.

 

[Ray Kinsella]

I highly recommend http://www.youneedabudget.com/. It makes it so clear where your money is going.

 

[beanerhawk]

This, I have a wife and daughter. I have an unexpected $400 something about every other day.

Sad example..... I run a monthly budget, with all bills, plus I account for savings, food (groc), food (eating out), gas, and entertainment. I try to make sure after that, we still have X000.00 left for the month. It's amazing how many months that X000.00 that should be left at the end of the month, ends up being X00.00.

You just described my month to month budget exactly, and it's very frustrating. I have 3 kids 16, 18, and 20 and between them and my wife something always comes up.

 

[BABiscuit]

we still have X000.00 left for the month. It's amazing how many months that X000.00 that should be left at the end of the month, ends up being X00.00.

Same here, but I shoot for eleventeen hundred dollars leftover.

 

[Funky Bunch]

What would these people sell to get the $400? Their car or their guns?

 

[naturalmwa]

What would these people sell to get the $400? Their car or their guns?

Sperm, blood, eggs, hair.

 

[TexMichFan]

Sheesh, I have $400 at the very least in change at home...probably a lot more.

Come home for the day, change in pocket, toss it in Mason jar. Never spend it. I call it my Polish savings account.

Probably 15 jars total if my memory is good...now that I think about it, it's probably a grand total.

My wife and I used an office water cooler bottle at 2/3 full it came to over $1,400. I was amazed at how much was there. We have done this twice in 20 years.

 

[whatsup12579er]

What would these people sell to get the $400? Their car or their guns?

One of their many children would probably be worth the most. People will pay a lot for white babies on the black market.